Manufacturers who grasp the full potential of IoT are able to not only streamline production, but can create entirely new business models and revenue streams.
Industrial manufacturing is being transformed by the Internet of Things (IoT). Today, the power to reduce costs and optimise production with industrial IoT is often the focus for manufacturers. But IoT also offers manufacturers the broader possibility to create new, connected products and build service-based business models around those products.
Manufacturers need to prepare for digital transformation with an IoT strategy. Understanding the real potential of information will help businesses move beyond just manufacturing to vertical business models.
Reduced total cost of ownership (TCO) is the most obvious benefit of making factories smarter with the help of sensors and connectivity technologies. Most often, initial savings result from more efficient maintenance and service processes.
Based on feedback from connected machines and devices, service can be performed as needed. When predictive analytics are combined with usage data, machine owners can accurately predict when specific components will need service or replacement. This makes it easier to manage spare parts inventory and improve uptime.
The next step for smart manufacturing using IoT is to utilise the information from connected devices to further optimize operational efficiency and prevent downtime. When automation is introduced, devices can work together in unison, even if they are separated by great distances. This enables flexible production techniques that can easily scale and rapidly respond to consumer demand.
Once they leave the production line, connected devices have the potential to give manufacturers real insight into how the product is used and how it performs. But that usage data has often been hard to access, and difficult to leverage.
Today, with ever increasing speed and coverage of connectivity, connected devices can often be accessed in near real-time. As the IoT industry has grown, there are now established frameworks and open APIs that help create practical applications for the data collected from connected devices. Real usage data can now empower product development to move in previously unimagined directions.
In the past, the deal was closed for manufacturers when the product was delivered to distributors or resellers. Today, manufacturers have the chance to create lifelong relationships with end-consumers via aftermarket service offerings and add-ons. This is where companies can make vertical business models a reality.
A connected product provides companies with the ability to connect directly to customer needs, building deeper, long term consumer relationships. The flexibility of a connected product gives businesses the ability to differentiate in markets across the globe.
A product-as-a-service business model gives manufacturers chance to generate new revenue. Instead of asking customers for an upfront investment, manufacturers can charge customers per usage or delivered value. That provides low barriers for consumer adoption, and the ability to quickly roll out multiple versions of products to see what works best.
From connected consumer products to industrial equipment, no matter what you manufacture, we can help you develop IoT solutions that work out of the box – anywhere your products go. We can help you roll out scalable, stable and secure IoT solutions that meet your needs for coverage, quality and price.
Telenor Connexion provide everything you need to successfully deploy and manage connected products and solutions around the world. Together with our partner network, we provide an end-to-end solution, from concept and design to monetization and operation over time. At the core of that end-to-end offering are our Managed Connectivity and Managed IoT Cloud.
Please feel free to download these white papers with information on IoT trends in manufacturing.