Smart devices and connected products, like the Apple Watch, raise an interesting question, what are the implications of transforming traditional products into smart connected products?
Now that we have sensors, connectivity, big data, and analytics, customers and businesses are leveraging this value to create new opportunities – here’s how.
Remote Operations
Connected products can share their data with their users, and likewise with the manufacturer, unlocking new service opportunities.
For example, I have the Nest thermostat in my house. I can adjust the temperature on my way home from work just but using a simple app control.
For a Minnesotan like me, this is pretty awesome when you experience winters like we have.
Remote Services
From a company perspective, remote access services are very valuable as well.
For example, just like a smart thermostat, manufacturers can automatically send updates to assets. Or if maintenance is required, technicians can often save time and money by remotely connecting to devices to ensure software and hardware are performing effectively. This can avoid unnecessary service calls.
Innovative Product Designs
Another great use case is how companies can change their product design strategies.
For example, IoT enables a new design strategy known as evergreen design. The premise is that when products are operating in the field, new software features can be built and delivered to a device to extend functionality and the usable life of a product. The Tesla car illustrates this concept well. Tesla actually used an evergreen design strategy to avoid a major recall.
A few years back, there were several instances in which the battery cell of the car actually rubbed against street curbs as the car turned corners, causing fires. Instead of sending all the Tesla cars back to the dealer, or a mechanic shop, the company sent a software update that automatically raised the clearance of the car chassis where the battery was located.
Tesla’s evergreen design saved the company money, as well as customer time, and money associated with a traditional recall.
Big Data Analytics
Another big game-changer in business is the value to be had from big data. Now that products can share information throughout their product development cycle and useful life, there is, in essence, a stream of data that we can collect, analyze, and use to inform all sorts of business decisions.
Wouldn’t it be nice to know when the average daily usage of your products or product segments is in decline or incline? It could drive new product innovation timelines, customer success strategies, and new revenue from cross-sell and up-sell.
Data Collection & Analysis of Consumer behavior
The practice of using big data is not new. For example, in the retail market, companies are using purchasing behavior data to inform their business decisions.
A great example comes from 2004 when Walmart conducted a big data study on customer purchasing behaviors prior to hurricanes.
What they found was surprising. A few days prior to the forecasted hurricane, people bought a significant amount of pop-tarts. In particular, strawberry pop-tarts. On the day of the hurricane, they bought more beer. Based on this data, Walmart adjusted their stock supply in anticipation of the new demand. This use case is unique in that data was originating from people’s shopping behaviors. What is different now is that we can collect and analyze data from products as well.
Remote Monitoring
Take the case of smart sports equipment. A friend I play golf with had a sensor attachment that told her about her swing, ball placement, and field location. So, as we were playing throughout the day, she was pulling out her golf app, observing her golf swing, and adjusting performance based on that data. This is great for the user, and there are also added benefits for the manufacturing company!
For example, the tennis racket company Babolat has sensors attached to their play pure drive product, which collects data about a player’s swing, the speed of their ball, and impact location.
Product to service transformation
Babolat also provides a training service, where based on the player’s performance, Babolat will provide consulting, hitting tips, and other development programs. In this use case, big data is transforming a traditionally hardware-oriented company into a service company as well.
This brings me to my last example, which illustrates a radical change in how businesses perceive product value.
Product-as-a-Service (PaaS)
Namely, products are now carriers for potentially limitless services based on how you creatively leverage their smart and connected elements. This concept is not new.
Products-as-a-Service have been pioneered in the aerospace industry.
For example, Rolls Royce licenses out their engines to airline customers, and they charge airlines for the millage of the planes as well as services associated with repair, and maintenance.
This is generally known as power by the hour. This product as a service concept is gaining a lot of attention in the IoT market.
For example, there is a big software battle for ownership of the car segment. Google, Apple, Microsoft, and the original car makers are attempting to get a slice of the services associated with cars, such as navigation, entertainment, and safety systems. This new service focus is really interesting for product development and associated business operations.
Bottomline – products are carriers of tremendous value. Now that we have sensors, connectivity, big data, and analytics, customers and businesses can leverage this value, and create new opportunities.
IoT Intro Class
At EAC, we want to make sure you don’t miss out on any revolution with respect to potential capabilities that you can add to your products- while we also realize the importance of basing your IoT initiatives around your mission statement. That’s why we created what we call our IoT Development Workshop.
We have made it our mission to help guide organizations like yours to explore and embrace the uncertainty of the emerging IoT market.
System integration is much easier than you might think; here’s why.
The idea of linking business systems and consolidating data, also known as system and data integration, has become a major initiative for many companies – but most organizations have no idea where to start. Why? It’s an overwhelming topic! Organizations operate using any number of complex business systems. The idea of connecting everything seems hard.
We live in world that is continually being transformed by data, yet much of the data we capture is held captive in disconnected enterprise systems that often include ERP, CRM, PLM, PDM, ALM, and QMS systems to name a few. This article explains why it is much easier to successfully integrate data and systems than you think.
What is system integration and how does it work?
System integration involves linking together component subsystems ensuring those separate, specialized business systems function as a coordinated whole. You might think of system integration a way to aggregate business subsystems so all systems within a business environment cooperate together as one.
The importance of system integration
When all enterprise systems work together as one, an organization is able to obtain new levels of role-based productivity and company-wide collaboration.
By combining disparate systems that operate with their own distinct data sets, an organization can improve product quality and performance, reduce operational costs, improve response times, and increase overall value to customers. We’ve watched our customers recognize exponential returns as more systems and users come together. It’s much easier to combine and integrate systems and data than you might think and let’s talk about why.
System integration solutions exist!
The problem with integrating systems/data is not a lack of technology – great system integration solutions exist! In fact, there are numerous connectivity tools and software applications available on the market today, that can simplify and speed up system integration. Many of these connectivity tools work in real-time, between data warehouses, software applications, IoT platforms and more!
Connectivity tools, such as applications and system plugins, enable organizations to easily create an environment of integrated data and information. These environments help manage the business itself and automate many tedious back-office functions related to technology, services, and human resources.
Take product lifecycle management applications (PLM apps) for example.
PLM applications connect all system data (from systems such as ERP, CRM, PLM, PDM, ALM, QMS, & more) and easily transform that data into a single interface with instant visualization. This allows someone from purchasing to instantly access materials, inventory and any other information they might need – without disrupting certain system operators. Furthermore, chances are that a partner from one of your current enterprise systems already is or has a system integration expert that can help you integrate your enterprise systems. (but in the case that you don’t, our company EAC Product Development solutions is capable and happy to help – it is one of many areas that we specialize)
Systems Integration tools are easy to implement
Today many enterprise system platforms can multiplex the reach of information and functionality that you already have on your business and make it reachable.
The steady shift of business systems into web-based connected architectures has made it easier than ever to connect enterprise systems! As a matter of fact, enterprise systems that you’re already using are likely to already have built-in application program interface (API) capabilities.
These built in API capabilities allow applications to talk to each other, while specifying how software components should interact. It boils down to this; get the right software to leverage your system’s API capabilities and you’re on your way to integrate business systems.
System data integration platforms can be affordable
Not only are there many integration applications and tools available on market today, but many of these connectivity solutions are becoming more and more affordable.
One of the greatest benefits of system integration solutions is that they oftentimes cost only a fraction of what it would cost to implement an entirely new enterprise system to do something! And the benefits quickly outweigh the costs when your productivity levels spike!
Integration applications are easy to use:
It’s now easier and less risky than ever to use data integration tools. In fact, many integration applications are designed with the user in mind.
Today many system data integration applications incorporate extremely easy-to-use, ready out-of-the-box features and capabilities! A great example is a tool like ThingWorx or PTC Navigate. These tools are designed to quickly provide integrated access to timely relevant information.
So, what are you waiting for? It’s time to make the most out of your enterprise system data by integrating your systems.
Need help getting started? That’s what EAC Product Development Solutions is here for. It’s our job to make your system integration smooth, easy, and effortless. Let’s talk about the next steps. We would love to help you find a system integration solution that fits your organizational needs.
