The IoT: Profitability and growth
Manufacturers expect the Internet of Things (IoT) to create significant opportunities, and some are already seeing great benefit
Schindler Elevator saw a 22% faster service restoration rate thanks to their IoT-based remote diagnostic capabilities, and Varian Medical Systems makes 20% fewer technician dispatches wordwide since investing in the IoT.
But improvements in services efficiency and cost reductions only scratch the surface of what manufacturers can achieve through adopting technology to enable services-led business models.
About the research
Our latest paper, produced in conjunction with services experts at Noventum, examines the impact on profitability and growth and the development of sustainable competitive advantage for manufacturers.
It is structured around a range of practical services business scenarios drawn from industry, including Terex, Mettler Toledo and Wicor-Nixdorf.
IoT business models
Companies are providing four main types of offering to customers, enabled by IoT connected devices and the data they transmit:
Uptime is guaranteed, and manufacturers can provide the service and manage the risk thanks to the visibility of the product provided by the IoT
Manufacturers advise customers on how to improve the processes in which the product is used
Manufacturers use their product expertise and data connections to provide critical business capabilities
Manufacturers provide new value propositions that change the way customers' businesses operate