Stay Connected, With Smart Connected Products
November 1, 2021
Sensors, wireless communication, and software have become increasingly plausible and cost-efficient in a wide range of items. From complicated $100,000 industrial machinery to mass-market $100 thermostats. Computing power has increased exponentially, sensor downsizing has advanced, and ubiquitous connection has paved the way. It’s a shift, as explained by Harvard Business School professors Michael E. Porter and James Heppelmann, CEO of software firm PTC. From simple mechanical and electrical elements to the complex systems we now know as smart, connected products or devices.
Companies Shifting to the Smarter Way
With considerable benefits, B2B producers of high-cost assets have led the way in this transformation, turning their products into services, or servitizing’ them. Schindler no longer just manufactures elevators that reliably transport passengers up and down; its technology can analyze and predict elevator demand patterns, reducing elevator wait times by up to 50%.
Jet engines, locomotives, gas-fired turbines, and medical imaging equipment have all been sold by GE for many years. It now sells smart, connected versions of the same technology, as well as new services based on the massive volumes of data generated by the devices. The outcome is a business model that sells a “whole spectrum of performance gains across the management of a flight,” rather than just jet engines.
The financial value of linking expensive assets like aircraft engines and mining equipment to the Internet of Things is obvious. These devices may lose firms millions of dollars in revenue if they are out of service or run inefficiently. Sensors and connections embedded in lower-cost consumer goods, on the other hand, can provide significant benefits. From home printers that can purchase their own ink before they run out to refrigerators that can buy more milk, a number of firms have already created smart, linked versions of everyday goods.
Using New Technologies
New technologies, such as sensors, networking, and personalization technologies, and smart materials, are used by successful makers of smart, connected devices. They must innovate not just with their products, but also with their business models, in order to establish a lean, efficient, and cost-effective ecosystem that extends from the supply chain to customers, who provide real-time data and insights on product usage. Manufacturers may turn data insights into lucrative business models in today’s digital economy by taking these steps. This is a significant shift in thinking. Previously, things were sold as capital equipment, generating tremendous profits.
Furthermore, manufacturers must be prepared to run their business models like a social network—distributed but connected, real-time, and with non-linear propagation—to keep up with the rapid pace of change in their customers’ preferences. They also have the technological and operational resources to support these continual products, data management, and service improvements.
Steps to Follow:
Making things smart and linked will make sense for most firms in the digital era, where customer experience is a competitive difference and generating lasting competitive advantage is a key goal. Manufacturers who want to take advantage of this opportunity should take the following steps:
Invest in expanding their network of CAD, ERP and IoT collaborators and partners.
Figure out how they’ll fit into a smart, linked product-services economy.
Predict the business models that smart, connected products will lead to.
Adapt low-cost sensors for use in their respective product categories
Choose between building an IoT platform from scratch or purchasing a platform as a service.
Create a solid data security plan for linked items.
Include legal and regulatory experts in the development of the infrastructure that will enable smart, connected products.
The era of smart, linked products has arrived. Hence, companies that acquire a head start on the competition can improve their market position. They can also show customers that they are looking for innovative methods to provide more value. Manufacturers who come up with new ways to turn items into profitable services will succeed.
KloudPLM is the new age for you. Manufacturers have not only kept smart and connected with KloudPLM, but they have also expanded tremendously with all of their potential shown in a professional manner. Manufacturing startups have experienced a tremendous increase in the number of vendors they can connect with and the amount of money they can make.