Show Me the Money, wait, wrong movie…
October 23, 2015
Michael Denis has a new post on generating bottom line results with IoT that’s right up our alley here at Scante.
Mike raises critical distinctions between building capabilities in a new technology area and actually delivering bottom line results in real world applications.
Of course, this resonates hugely with us. His examples from aerospace MRO are directly applicable for a broad swath of manufacturing companies and service providers in engineered products markets.
IoT on the wrong path
The vast majority of IoT offerings focus on infrastructure for communications and cloud data, while the real problem for most companies is how to capitalize on the data and connectivity to their products in the field.
Among several other excellent points, Mike notes that IoT data and connectivity need to lead to faster and better decisions, improved processes, new and better business models and improved profitability. Most IoT efforts, don’t begin to deliver on these ideas.
New models for the IoT Era
But, even at our early stage, we’re taking a very different path. Already, we’re working with several companies in one particular vertical market to mesh IoT data and business process from 4-5 companies into unified, customer facing apps. These “IoT Ecosystem” apps will help extend their business models for MRO parts and services beyond what they can do individually.
We’re using IoT data to provide vastly improved tools to identify wear and impending failure on critical parts used across a number of manufacturing markets. At the same time, we’re using our CX apps to help capture parts and services revenue from the improved diagnostics and customer interface. Because we’ve spent so much time and effort on the app platform, we can do these things rapidly and affordably.
We learned some hard lessons from our early IoT wins with big companies a decade + ago about capabilities vs real world results. Everything we do these days is directed at producing real world results for companies — using IoT to deliver better support, capture the parts and services revenue, build long term engagement and loyal customers.
Read Michael’s piece, and give us a shout for more discussion.