We are living on the brink of the fourth industrial revolution. This technological revolution is altering the way we live, work, and relate to one another. In the services industry, it is transforming how businesses connect assets, people, infrastructure, public spaces, and processes. From insurance and construction to telecommunications and transportation, Internet of Things (IoT) digital transformation is creating new opportunities for revenue generation, asset utilization, and revenue growth. These new economic opportunities will be worth more than $5 trillion to the services industry, according to the IDC white paper, “The Future Services Sector: Connected Services for Continuous Delivery.”
The potential of IoT connected services
At the heart of IoT-enabled digital transformation are the connection of devices, the use of digital technologies, and the generation and analysis of data. By bringing sensor networks together with machine learning and AI, services companies can derive meaningful intelligence across their business and turn insight into action (watch the two-minute video).
For example, distributing intelligence allows for safer, more efficient operations. Continuous monitoring improves reliability. Analysis of long-term usage enhances service quality, and shifting to usage-based contracts creates new revenue models.
New opportunities for the services sector include:
- Insurance: Live monitoring of car and truck fleets allows insurers to base premiums on live-tracking performance and use
- Freight companies: Print orders on demand with 3D printing, reducing the need to ship physical packages
- Fleet: Train and airplane component monitoring that’s enhanced with predictive capabilities and uses performance data to proactively address maintenance needs
Bring total digital transformation to your company
Service companies preparing for IoT digital transformation face two key challenges: quality and speed. Companies need a comprehensive, high-quality solution that unites all aspects of their business across a single platform. Secondly, IoT solutions need to be implemented in a timely manner – without compromising quality.
The following steps will prepare your company for total digital transformation:
- Move away from one-off projects. Ad-hoc solutions and one-off projects lead to internal confusion and chaos. Put together a single, comprehensive plan that details specific business benefits across new revenue models, asset effectiveness, and process optimization.
- Invest in a digital platform. The right digital platform will combine autonomic processes and machine learning-based innovation to drive cognitive analytics and IoT.
- Choose a technology partner wisely. The technology partner you select can significantly impact future business success. Ideally, this technology partner will have a platform that can support a complete set of IoT and analytic capabilities. Native integration with existing systems is a significant cost advantage.
Connected services are transforming the services industry with new opportunities. To bring these opportunities to life, companies need a partner that can break down barriers between the technology that runs their operations and the technology that runs their business.
SAP is bridging this divide by providing total integration of operating infrastructure, business systems, and digital platforms. SAP Leonardo connects people and processes so your business can deploy next-generation services fast. Find out how your company can capture the tremendous growth opportunities powered by IoT-enabled digital transformation. Download the IDC white paper “The Future Services Sector: Connected Services for Continuous Delivery” to see what’s possible for your business.