IoT: Connected Manufacturing Leads To Service as a Product

IoT: Connected Manufacturing Leads To Service as a Product

Connected Manufacturing

A car is driven back to its home garage for the night, and its data port is plugged in. Then, some exciting things happen. First off, the car sends diagnostic information back to the manufacturer to cross-check against any systems that require repair, maintenance, or replacement. The manufacturer then downloads a selection of new driver experiences, including a different acceleration style (choice of sporty or smooth), improved navigation and mapping software, and new stay-in-lane safety features.

This is not a vision of some distant future. These things are happening now with certain brands of cars, and they will expand quickly across much of the retail and industrial automotive landscape. It is a subtle example of the power and diversity of the Internet of Things – the capacity for all types of machines, not simply computers and phones, but every kind of device or tool to communicate, primarily by way of the Internet.

IoT-IDC

(Image Source: IDC)

A vital observation from a business standpoint is the fact that so much of the value of this car company now lies with the transfer of data. The car is as physical a product as ever, but the current that drives everything forward, from design to manufacturing to sales to aftermarket monetization, is data.

Connected Manufacturing

From an outside perspective, the Internet of Things offers an unlimited selection of innovations, ranging from an electric toothbrush that monitors correct brushing style, through to tire pressure sensors in truck fleets to geolocation sensors attached to livestock. The potential for their use is limitless, and this includes on the factory floor. Connected Manufacturing is the industrial application of the Internet of Things. It ushers in a revolution in manufacturing, on par with Ford’s development of mass production and the mid-20th-century development of Just-In-Time logistics.

shutterstock_331211831

(Image Source: Shutterstock)

Proactive analytics, for example, helps a device identify future needs, such as when a part might fail, when it requires service, or when supplies need to be ordered. When the machine itself can dispatch the appropriate commands to a human or another machine, it ensures smooth, safe and economical operation.

Distributed intelligence allows for greater degrees of personalization. In healthcare, medical device dashboards can reflect an individual patient’s information and requirements. At home, an intelligent refrigerator can automatically add needed items to a grocery list or grocery delivery service. In manufacturing, greater capacity opens up for customized production according to an individual customer’s requirement without extensive retooling or downtime. The machines themselves can decide how best to approach the project and self-organize to get each job done.

Intelligence Through Data 

The universal availability of data and its intelligence allows decision-makers, designers, account reps and everyone else in the supply chain to share necessary information, opening up opportunities for enhanced sales and support, improved internal management, customer service, and innovation.

brain-data

Connected manufacturing is a type of cornucopia, a perpetual source of sustenance for every business and manufacturer primarily because of the data that it makes available. But it demands a change in mindset, even for those that deal in heavy tangible goods, since the same intelligence that powers the manufacturing process now modifies the management model.

Companies are now becoming purveyors of information and providers of services. Rather than sell, or even lease a piece of heavy machinery to a customer, a business may realize greater overall revenues by providing services, such as maintenance, training, and supplies. They can attract and retain essential customer data to facilitate up-sells, and innovative aftermarket monetization opportunities. This idea of not selling a product, but retaining ownership of it and delivering services instead, requires significant flexibility on the part of corporate decision-makers, long used to a more traditional approach to commerce and business. It is the result of a chain of processes that starts with the Internet of Things, moves through connected manufacturing and winds up in the service industry.

Business leaders who are contemplating a move into the world of the Internet of Things must ensure their education travels along two streams: first is understanding the sheer diversity and versatility of IOT technologies, and how to implement them into the manufacturing and delivery stream. Second and arguably the most important is the flipped notion of “you-as-a-service.” No matter how tangible or long-standing a company’s products may be, their value now lies in the information halo that surrounds it. Machine-to-machine communication leads to data; data leads to information, and information becomes the key to every company’s future.

For more on this topic, go to http://businessvalueexchange.com, sponsored by Hewlett Packard Enterprise.

By Steve Prentice

About Steve Prentice

Steve Prentice is a project manager, writer, speaker and expert on productivity in the workplace, specifically the juncture where people and technology intersect. He is a senior writer for CloudTweaks.

Find out more
View All Articles

Sorry, comments are closed for this post.

Comic
Fintech Exploiting AI and Blockchain Technology

Fintech Exploiting AI and Blockchain Technology

AI and Blockchain Technology The field of artificial intelligence (AI) had progressed rapidly in the last ten years, though first recognized in the 1950s. From autonomous motor vehicles to digital personal assistants, the technology is making its way into a variety of industries, enabling better task automation, language processing, and data analytics. But more recently,…

Staying on Top of Your Infrastructure-as-a-Service Security Responsibilities

Staying on Top of Your Infrastructure-as-a-Service Security Responsibilities

Infrastructure-as-a-Service Security It’s no secret many organizations rely on popular cloud providers like Amazon and Microsoft for access to computing infrastructure. The many perks of cloud services, such as the ability to quickly scale resources without the upfront cost of buying physical servers, have helped build a multibillion-dollar cloud industry that continues to grow each…

What’s On The Horizon For Cloud Computing

What’s On The Horizon For Cloud Computing

Cloud Computing Trends Now that we are a little more than halfway through 2016, many experts are beginning to make their predictions about cloud computing for the rest of the year and beyond. While many of the trends aren’t too unexpected (the ever increasing acceptance of cloud solutions by businesses, for instance) other trends are…

Tesla Solar Plan Would Cost Billions To Implement

Tesla Solar Plan Would Cost Billions To Implement

A 1,500-word manifesto that Elon Musk unveiled last week, outlining his plan to expand Tesla Motors Inc.’s electric-vehicle line and to build “stunning solar roofs,” may end up costing the company tens of billions of dollars to carry out. Musk, Tesla’s chairman and chief executive officer, gave the estimate on Tuesday after a tour of the…

Healthcare IoT Security To Grow To $47 Billion In 2021

Healthcare IoT Security To Grow To $47 Billion In 2021

Healthcare IoT Security It’s obvious that IoT can make the entire healthcare industry more efficient. The kind of data involved can be used to save time, physical energy and operating costs. Because of this, devices that facilitate medical data are becoming more commonplace in the industry. This includes things such as wearables that can track…

The Security Gap: What Is Your Core Strength?

The Security Gap: What Is Your Core Strength?

The Security Gap You’re out of your mind if you think blocking access to file sharing services is filling a security gap. You’re out of your mind if you think making people jump through hoops like Citrix and VPNs to get at content is secure. You’re out of your mind if you think putting your…

Are CEO’s Missing Out On Big Data’s Big Picture?

Are CEO’s Missing Out On Big Data’s Big Picture?

Big Data’s Big Picture Big data allows marketing and production strategists to see where their efforts are succeeding and where they need some work. With big data analytics, every move you make for your company can be backed by data and analytics. While every business venture involves some level of risk, with big data, that risk…

5 Ways To Ensure Your Cloud Solution Is Always Operational

5 Ways To Ensure Your Cloud Solution Is Always Operational

Ensure Your Cloud Is Always Operational We have become so accustomed to being online that we take for granted the technological advances that enable us to have instant access to everything and anything on the internet, wherever we are. In fact, it would likely be a little disconcerting if we really mapped out all that…

Adopting A Cohesive GRC Mindset For Cloud Security

Adopting A Cohesive GRC Mindset For Cloud Security

Cloud Security Mindset Businesses are becoming wise to the compelling benefits of cloud computing. When adopting cloud, they need a high level of confidence in how it will be risk-managed and controlled, to preserve the security of their information and integrity of their operations. Cloud implementation is sometimes built up over time in a business,…

Achieving Network Security In The IoT

Achieving Network Security In The IoT

Security In The IoT The network security market is experiencing a pressing and transformative change, especially around access control and orchestration. Although it has been mature for decades, the network security market had to transform rapidly with the advent of the BYOD trend and emergence of the cloud, which swept enterprises a few years ago.…

7 Common Cloud Security Missteps

7 Common Cloud Security Missteps

Cloud Security Missteps Cloud computing remains shrouded in mystery for the average American. The most common sentiment is, “It’s not secure.” Few realize how many cloud applications they access every day: Facebook, Gmail, Uber, Evernote, Venmo, and the list goes on and on… People flock to cloud services for convenient solutions to everyday tasks. They…

Five Signs The Internet of Things Is About To Explode

Five Signs The Internet of Things Is About To Explode

The Internet of Things Is About To Explode By 2020, Gartner estimates that the Internet of Things (IoT) will generate incremental revenue exceeding $300 billion worldwide. It’s an astoundingly large figure given that the sector barely existed three years ago. We are now rapidly evolving toward a world in which just about everything will become…

The Industries That The Cloud Will Change The Most

The Industries That The Cloud Will Change The Most

The Industries That The Cloud Will Change The Most Cloud computing is rapidly revolutionizing the way we do business. Instead of being a blurry buzzword, it has become a facet of everyday life. Most people may not quite understand how the cloud works, but electricity is quite difficult to fathom as well. Anyway, regardless of…

Cloud Computing Services Perfect For Your Startup

Cloud Computing Services Perfect For Your Startup

Cloud Computing Services Chances are if you’re working for a startup or smaller company, you don’t have a robust IT department. You’d be lucky to even have a couple IT specialists. It’s not that smaller companies are ignoring the value and importance of IT, but with limited resources, they can’t afford to focus on anything…

Cloud Infographic – Interesting Big Data Facts

Cloud Infographic – Interesting Big Data Facts

Big Data Facts You Didn’t Know The term Big Data has been buzzing around tech circles for a few years now. Forrester has defined big data as “Technologies and techniques that make capturing value from data at an extreme scale economical.” The key word here is economical. If the costs of extracting, processing, and making use…

The Future Of Cybersecurity

The Future Of Cybersecurity

The Future of Cybersecurity In 2013, President Obama issued an Executive Order to protect critical infrastructure by establishing baseline security standards. One year later, the government announced the cybersecurity framework, a voluntary how-to guide to strengthen cybersecurity and meanwhile, the Senate Intelligence Committee voted to approve the Cybersecurity Information Sharing Act (CISA), moving it one…