IoT in Manufacturing - Buzzword of next generation OEM
5.05.2017Technology is changing rapidly and so are the requirements of customers and clients in the marketplace. As part of this evolution, businesses are becoming more astute, time considerate and adaptive to client needs. We are living in the era of smart technology with little room left for manual processes which consume unnecessary time and money. The adoption of technology and the Internet of Things (IoT) is connecting manufacturing to their end clients in ways never seen before. The simple truth is that manufacturers need to enable their products to be smart and leverage IoT to remain competitive in today’s business world.
IoT - Evolution for a sustainable planet
The world has continually gone through periods of great change and societal transformations that have improved life for people around the world. From the industrial revolution through to the age of information, humanities quest for knowledge and improved standards of living has continually raised the question; “What’s next?”
In today’s world, the answer lies with the new generation of technology companies that are designing and building in preparation for an incipient technological revolution. These companies are connecting both the people of the world and machines. We are entering a world of seamless capabilities in which products of all types are connected to users’ needs and desires. We are entering the IoT revolution!
IoT is bringing an age where mankind, the environment and the assets merge to work as a unified service unit. This revolution is transforming the way humans and machines interact and the way businesses of all types deliver services in today’s marketplace. Automation, control and data acquisition is the heartbeat of IoT in this interactive world. While the internet brought the age of information to the masses, the Internet of Things (IoT) will bring integration and intelligence to our existence in ways never seen before. It will literally transform how homes, buildings, cities and entire countries function and interact.
IoT in Manufacturing, the upcoming business model for OEM business administration
As a result of the transformation brought by the IoT revolution, the structure of OEM businesses is transforming from a traditional product-oriented model to service-oriented models. This new business model requires data driven products enabled by IoT technology to survive in today’s market. The optimization and governance of data provided by IoT will enable cost reductions in manufacturing operations and services through increased operational efficiencies made available by real time data availability. More importantly, through the leveraging of IoT, manufacturers are able to see exactly how their products are used which enables enhanced service offerings that more completely meet client needs. This will help the OEM manufacturers to execute dynamic business changes and open new revenue streams as the needs and desires of clients change.
Why is it said that IoT changes the way manufacturers will think tomorrow?
IoT in the manufacturing sector is an interesting subject as researchers reveal that 42% of the manufacturers realize they must become Internet of Things (IoT) connected players to compete in current and future markets. Further, 45% of companies realize that they must make an urgent shift from traditional business models to those based on real time, cutting-edge IoT services.
For most businesses, IoT is one of the top three priorities. Only 3% of OEM’s plan to stick with their traditional strategy based on a product-oriented business model. It is likely that those with this view won’t last long and will eventually adopt IoT and data driven policies to drive their business network.
Current OEM business model vs. IoT driven business model
Current OEM strategy is often based on decades of knowledge in the vertical that the OEM serves. While this provides a great level of product knowledge and uses strategy for the assets manufactured, it often does nothing to connect the manufacturer to the end client after the sale. OEMs are also unable to leverage data from assets to provide enhanced services and functionality to the end user. This can be easily seen with the multitude of products that we use today which lack any intelligence or connectivity to the world. As an example, consider the air conditioner or refrigerator that serves your business or home. Most commonly, these are standalone units with no embedded intelligence or ability to even share basic information.
Contrast this with IoT enabled devices of the same type.
For the end user, an air conditioner that is IoT enabled can adjust the temperature of a room based on outside temperatures, number of occupants, time and numerous other variables. This can all be done in real-time while providing the end user with information on efficiency, temperatures and run-times.
For the manufacturer, an IoT enabled air conditioner can provide real-time data detailing the reliability of the unit. It can provide data important in the processing of warranty claims and the design of the unit. It enables real-time diagnostics and real-time calibrations based on weather and use patterns. An IoT enabled air conditioner can provide predictive diagnostics letting the end user and the manufacturer know of pending or current failures. The end user gets a set of real-time tools that make the product stand above the competition. The manufacturer gets to stay connected and offer services around repairs, calibrations and optimization strategies opening new revenue streams.
BlueSurge Technologies IoT - OEM managed services
BlueSurge Technologies provides end-to-end IoT services for all verticals including “IoT in Manufacturing". BlueSurge brings the expertise, knowledge and experience as well as partnerships with leading technology companies such as Microsoft in the creation of IoT solutions. BlueSurge works with manufacturers, research organizations and others to identify current OEM challenges and design systems that bring the benefit of real-time data and IoT to bear. BlueSurge is delivering tailored end-to-end solutions for IoT via cutting-edge solutions such as the SurgeGateway and the SurgeCloud platform. Working with major manufacturers in the space of engines, HVAC, lighting and other products we bring new business dynamics and service offerings designed to meet client needs.