The internet of things and the capability to connect to the internet suddenly brings all kinds of new implications for products and their value.The internet of things is fundamentally changing how products function and how customers derive value from them.
How the internet of things is changing products and impacting what customers perceive as product value
Products today are becoming a combination of physical components, smart components, and connectivity components. Each of the 5 layers of the IoT stack plays a role — core product infrastructure, sensor systems, connectivity, analytics, and smart applications on an IoT platform.
While all three elements — Strategy, Connected Things, and true IoT platforms — seem somewhat elemental, balancing these will be central to the success of any IoT enabled business initiative.
For instance, look at a simple product, such as the light bulb.What is the product? In this case it’s the light bulb itself.What is the value of the product? I’m not talking about the monetary value, but rather the reason, need, or problem that drives the product purchase in the first place.
You might say in this specific case, the value of the product is the light that it provides, the illumination it creates, or perhaps the extension of functional hours it delivers.
What if we were to add connectivity to the product?By using an app on a device that controls the bulb via Bluetooth connection, you could now change the color of the light remotely.You could control the function of the light bulb with the sound of your voice.You could use the products new functionality to simulate the sunrise and replace your alarm.You could even sync the bulb to reflect your fluctuating stock prices! There’s a host of applications now available – just for a single light bulb.
Revisiting the original question, evaluating your new connected light, what is the product?Is it still just the bulb? What about the app that controls it, or the device that supports the application?It’s really an interesting question to consider.It’s really an interesting question to consider.For this same connected product, let’s talk about its value.
Again, I’m not talking the connected product’s monetary value, but rather the reason the product would be purchased in the first place.Would it still be just for the light or illumination, or is it the array of colors, new features and functionality?The fact of the matter is – the value of the product has changed.The connected product now adds value in the form of light, remote control, entertainment, and even overall experience.
Products and their value are changing
As a consumer shopping for an original bulb, you were most likely looking for a certain wattage or color (such as yellow or white) – not an experience.The connected product now adds value in the form of light, remote control, entertainment, and even overall experience.
Now that products are changing and you have systems of products: an app, a bulb, connectivity; the product value changes as well.You now have the ability to look for a light that can be synced to music or sound. A light that simulates the sunrise. A light that you can control from your device.You now need to weigh product value against a slew of new price points, features, and the support the manufacturer will provide over the years.
There’s no question that the value of products is changing because products themselves are changing. We’d like to help you map out this new world.If you’d like to do anything from brainstorm potential impacts to your business, develop a full strategy for IoT at your organization, create proof-of-concepts, or implement underlying technology… you’ve come to the right place.
We’re your partner in the ever-changing world of the internet of things.
The internet of things (IoT) is a business and technology revolution. It not only enables the connection and communication with ‘things’ but allows us to manage them.
It allows our organizations to do preventative and predictive maintenance on ‘things’, do guided service on ‘things’, and create digital twins of ‘things’. It enables us to improve operational efficiency, significantly reduce downtime, and to develop new revenue streams.
What makes up the ‘Internet’ in IoT?
The internet is composed of two separate communities; the internet of people and the internet of things or IoT.
The Internet of People
First, let’s break down what we mean by ‘the internet of people.’
The internet of people has grown organically over the past 20 years and has evolved into becoming an interconnected network of billions of people. That’s right, billions. Its primary purpose is to connect people, collate information, and enable people-to-people interaction.
The internet of people allows people to connect by becoming a clearinghouse of information. People post information available to other people, generating a great deal of information that is being pumped into the cloud.
The Internet of Things – IoT
The internet of things has been growing organically for the past 10 years and has the potential to become much larger than the internet of people. Its primary purpose is to connect machines, people, and data.
The IoT also enables people-to-machine and machine-to-machine interactions. In the Internet of Things, things are pumping data into the cloud so products can be monitored, controlled, optimized, and automated. During this process, information and data are streaming into the cloud from both people and things.
Combining the internet of people and things
This leads us to the internet. As mentioned earlier, the internet is the combination of internets of people and things into one integrated network. (Of course, they never were really separate, but it helps to think of them that way to facilitate the study of IoT).
Why are businesses investing in IoT?
The market for IoT is huge! Today there are over 20 billion connected devices, and that number is growing at an incredible pace. With connected devices comes a tremendous upside opportunity for IoT investments.
Through 2020, estimates are as high as 1.6 Trillion dollars! In fact, McKinsy has determined that the economic impact of IoT will top 11 Trillion dollars by 2025! The reason companies are starting to make such big investments in IoT is because so much value can be created.
How the Internet of Things is impacting product value
The internet of things isn’t about the internet – it’s all about the things. The things are what’s changing. The trend of smart connected things is really accelerating now that there’s a computer of sorts inside just about everything!
Today, according to the US government Census Bureau, there are about seven billion people on the planet Earth. About one-third of these people are connected to the internet with smartphones, tablets, and computers- yet in 2010 we hit an important milestone where there were more things connected to the internet than there were people on Earth This suggests these connected ‘things’ aren’t just smartphones, tablets, and computers anymore – they are fitness bands, thermostats, vehicles and more! This is where real innovation is happening.
Today, almost everything we have around us is capable of connecting. I’m talking about buildings, appliances, machinery, farms, hospitals, cities – all kinds of things. Now there’s a massive investment that is feeding this rapid expansion of the smart connected products – the internet of things solutions market. The IoT solutions market includes the smart connected things, the connectivity services, the software platforms and applications, the security, the analytics, and really everything related to smart connected products.
IoT Development Workshop
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, PTC Navigate, or EAC Productivity Apps. 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. Fill out the form to have someone from EAC contact you about integrating all of your systems, once and for all!
