The Internet of Things (IoT) offers enormous potential for discrete manufacturers. It can drive more top-line revenue by enabling new, differentiated products and services. It can also reduce bottom-line costs by streamlining production and predictive maintenance through asset optimization and inventory optimization. And, IoT can lower maintenance costs by up to 60% and inventory costs by up to 50% thanks to optimization.
Manufacturing operations spent $102.5 billion on IoT in 2016. But despite this significant investment, many discrete manufacturers are not sure how to bring all these different pieces together into a single platform. Integrated cloud and analytic solutions are solving this problem.
Integrated cloud and analytic solution benefits for manufacturing companies
By connecting things with people and processes, integrated cloud and analytic solutions empower Live Business in four important ways:
- Live insights – An integrated IoT network combines data retrieved via sensors with contextual information to deliver live, actionable insights.
- Future forward – Putting predictive analytics on top of this information enables businesses not only to analyze current and historical data but also to “consider the future.” Fully integrated IoT can predict future opportunities and recommend concrete actions your company can take to capitalize on these opportunities.
- Process optimization – More value is generated through IoT by optimizing business processes and leveraging insights provided by data from physical things. Process optimization typically results in cost savings and shorter processing times.
- New business models – Companies can efficiently run new business models that would not have been possible before. This includes usage-based pricing and Technology-as-a-Service (TaaS).
How integrated IoT solutions serve products, assets, and fleets
Technology investments, most notably in IoT, are critical components of digital transformation. These investments connect products, assets, and fleets.
- Connected products – Also known as “smart products,” connected products are strategic priorities for industrial manufacturers as they enable new service-based business models and provide the opportunity to make aftermarket service far more efficient. Integrated cloud and analytic solutions make it possible for manufacturers and operators to leverage sensor data. For example, research and development teams can utilize data using digital twins of connected products from sensors and other Big Data sources. R&D can then use this data to support the development of more reliable and desirable products. This includes adding features to meet specific customer needs while eliminating unused or undesired features that are expensive to include and offer minimal customer benefit.
- Connected assets – As companies move from a reactive to a proactive approach to maintenance, an end-to-end solution for predictive maintenance and a service to identify and resolve issues before they happen are critical. This service must span from condition monitoring and the identification of emerging issues via machine learning to procuring spare parts, scheduling, and executing service and maintenance. Connected assets meet these needs, enabling manufacturing companies to connect, monitor, and analyze customers’ assets as well as their own.
- Connected fleets – By enabling connected fleets, you can track, monitor, analyze, and maintain all moving assets, wherever they are in the network. Connected fleets enable manufacturing companies with fleets of moving assets, like vehicles or forklifts, to collect live telemetry and sensor data. IoT can collect, map, store, and analyze fleet and vehicle data in real time through the integration of telematics, enterprise, and customer data. This data is then integrated into the core business processes to improve services and safety for operators, improve visibility to logistics, and provide better services for end customers.
Selecting the right integration option for your company
While analysts foresee a huge monetary potential through the IoT for manufacturers, companies are struggling to derive a firm strategy. With so many different options, it can be difficult to know where to begin. Implementing IoT does not start with technology. Companies must first clarify their core value chain and assess enterprise-wide options for value optimization through new business scenarios.
Your company should consider, for example, how connected manufacturing and predictive quality could minimize production costs. How could remote monitoring and predictive maintenance service agreements create new, aftermarket revenue streams? Finally, how could connected logistics ensure your company knows where everything stands in its supply chain, reducing safety stocks and minimizing costs? Once your company has answered these questions, your business can begin to consider platform partnerships.
Learn how to innovate at scale by incorporating individual innovations back to the core business to drive tangible business value by reading “Accelerating Digital Transformation in Industrial Machinery and Components.” Explore how to bring Industry 4.0 insights into your business today by reading “Industry 4.0: What’s Next?“