Manufacturers and other industrial organizations need to prepare their operations and products for the emerging, connected world of the Internet of Things (IoT).
ARC Advisory Group believes that the emerging IoT will offer value across multiple industrial sectors and applications. Cisco expands on this, using the term, “Internet of Everything” (IoE) to describe its vision of bringing people, process, and data together via the Internet of Things. Cisco predicts that the IoE could enable manufacturers to generate $3.88 trillion of value through a combination of increased revenues and lower costs over the next 10 years.
Gartner has also recently projected that growth in the IoT will include 26 billion units installed by 2020 resulting in billions of dollars of additional value for suppliers. In order to accomplish this, manufacturers will need to rethink their underlying business models and begin investing in innovation across their Customer Relationship Management (CRM), Enterprise Resource Planning (ERP) and IT Systems as software will now be playing a critical role in product development and product revenue models.
The most fundamental technology need for digital transformation is a digital platform of integrated data and processes – providing the right information to the right people, to the device of choice at the right time.
Unified data and processes is one reason that web-based companies are able to gain an advantage through analytics and personalization much more readily than traditional firms. For many traditional companies, the first step in preparing for digital transformation is to invest in integrating data and processes across the enterprise. Firms that have already implemented modern / cloud-based ERP and CRM systems are already ahead of others.
Convergence of Machine and Intelligent Data
Once organizations have invested in their systems and processes, the next step is the convergence of machines and intelligent data.
For an idea of how the New Industrial Revolution is playing out on a large scale, lets take a look at GE and the Industrial Internet.
Advancing to the Internet of Everything
Once a manufacturer gets underway with their digital transformation, what are some of the next steps or considerations for advancing their connected devices?
According to Gartner, the next piece of the puzzle to consider is looking for opportunities for Licensing and Entitlement Management.
By using flexible licensing for controlling product features, functions and capacities of Internet-connected devices, manufacturers will be better positioned to compete with increased speed to new and existing markets with new feature rich combinations of product enhancements.
Intelligent devices, with embedded software applications, are recognized as the core value of device offerings and enable manufacturers to transform from offering basic devices to offering technology solutions with differentiated, higher value to customers and business partners.