They say a picture is worth a thousand words, so here’s a hypothetical situation to paint the story ‘how real-time information and predictive analytics unlock value.’
To start, imagine a fully functioning assembly line with a robot, a pneumatic system, a series of conveyors, and a vision system.
Let’s pretend the supply station in the back is bringing in our raw materials. The robot is assembling those materials with precision. The resulting assemblies are then passed on to the quality station, and the vision system inspects each of those assemblies to ensure proper alignment of the parts.
This is a pretty generic operation, but it can show how unified real-time information and predictive analytics unlock value.
Now imagine yourself as a maintenance engineer, who wants to check the status of your asset pool.
Using software, such as ThingWorx Navigate by PTC for example, you launch a role-based maintenance application. All of a sudden you see a complete list of your assets with real-time performance stats and relevant alerts or notifications. You also have a complete list of all your outstanding maintenance work orders.
From here, you have the ability to drill into any of your assets, but you start with the quality station. You immediately see the key characteristics of the station. You see that speed vibration and temperature are all operating within their specified range. You could also see notifications of any warnings, malfunctions, or potential future problems.
Next, you use your device to take a look at the pneumatic system. The pneumatic system also looks fine. Both pressure and flow are operating within the specified range, and there are no outstanding maintenance tickets or work order notifications on your screen.
Now, let’s consider a situation where there was a leak in the pneumatic system. Let’s say a loose fitting was releasing pressure, a fairly common problem in pneumatic systems. Now, rather than looking fine, your device displays flow readings outside of the designated operating range. Furthermore, an alert has automatically been sent to notify you that a system has an error. The overall status indicator on your screen has now switched from green to orange – operational, but not optimal.
Your software solution’s machine learning is now predicting that this air leak, if not repaired, will result in a pneumatic gate failure in approximately 10 day’s time. The good news for you is the system has already issued you a maintenance work order to address the problem before asset failure and unplanned downtime.
This scenario is made possible by a system equipped with primary and secondary sensors, and a complete Industrial Internet of Things (IIoT) solution that can turn raw machine data into valuable information.
For example, your pneumatic system has an airflow sensor, as well as a pressure sensor. The conveyor systems are equipped with motor temperature sensors and vibration sensors.
In addition to the sensors, the rest of the assets on your line are controlled by typical PLCs, which are connected to software such as ThingWorx and Kepware.
You have also used your software to integrate manufacturing floor systems with real-time IT applications, asset maintenance tools, and ERP systems. This provides you with a real-time alignment of your IT and OT systems.
Now, all of your systems are throwing data out at a staggering 800 data points per second.
Your software’s machine learning then uses that real-time streaming data to establish a baseline of normal operating conditions. This way it can immediately connect and broadcast any anomalies that occur. It uses these anomalies, in conjunction with its prediction capabilities to notify you of future problems, just as in the case of the pneumatic failure.
Now that you have an understanding of what is happening under the hood, let’s take a look at how all this comes together to enable real-time operational intelligence.
Pretend you are a production manager. Using software like ThingWorx Navigate and Kepware you have complete visibility into all of your factory operations. You can see all of your work orders, lines, and all of their critical KPI’s.
On your device, you notice an orange status indicator on line one (that was created from the air leak earlier). Once that air leak has been repaired, everything returns back to normal, just as you would expect.
Let’s explore one more hypothetical situation. Consider yourself to be an operator. In this case, you have just been assigned a new order for a thousand units that need to be delivered and expedited for an end-of-day delivery.
You’re notified of the order and in this smart connected scenario you, as an operator have a single portal from which you can see and execute all of your work. Through a single pane of glass, you now have access to your business systems information and your operational data including the KPIs from your line.
On your device, you also have up-to-the-minute visibility of the OEE (Overall Equipment Effectiveness). You see real-time data measurements of your manufacturing operation’s availability, quality, and performance.
Let’s see how some of these metrics might change if we go ahead and speed up the line to accelerate the current order, in order to make room for that expedited order.
To do that you switch the line speed from level one to level two. What you see in seconds on your device is that line speed has increased, and your assemblies are still passing the quality check.
Within a couple of minutes and a few additional cycles, on your device, you see both your performance and OEE trending upwards.
As an operator, you now are assured that you are going to meet your end-of-the-day deadline.
Using these hypothetical situations, together we have painted a picture demonstrating how you can connect disparate assets from different vendors, to provide real-time information.
You’ve also seen how you can leverage role-based applications that combine business systems information and operational data to empower your workforce with real-time actionable intelligence.
By integrating machine-learning capabilities you brought a whole new level of predictive intelligence to your factory floor, identified problems, and resolved issues with minimal impact on operational performance.
This is exactly how real-time information and predictive analytics can unlock value for your organization.
The very definition of many industries is changing in no small part due to the of the Internet of Things (IoT) and its’ ability to disrupt and generate new business opportunities. Industry leaders across the board are starting to embrace IoT projects, use IoT devices, and build smart connected products using IoT platforms.
This article references real IoT case study stories and internet of things examples from John Deere and Nike to provide you with a better understanding of how the IoT is starting to shake up and disrupt industries.
To paint you a picture of exactly how the IoT is creating business opportunities for organizations today, let’s start with a company you might already be familiar with – John Deere.
Before the rise of IoT
John Deere has been making tractors and agriculture equipment for over 175 years.
For many years, though, they made simple tractors that weren’t ‘smart’ or connected products, they were just mechanical.
Soon enough, over time, John Deere’s products started to become smart and connected– changing everything for the organization.
Creating smart products & connecting devices
John Deere began to equip their products with digital dashboards, engine control units, sensors to alert users if they are running out gas, if oil pressure is too high, if hydraulic pressure is too low, etc.
By doing so, John Deere began to realize the countless benefits that came along with connecting their agricultural equipment to the internet of things, which eventually would provide the ability to remotely monitor the equipment’s performance.
Now remember, at this point, John Deer was still a tractor company, but as the organization moved forward with their vision of smart connected products, they also created what is called a smart connected product system.
The evolution of a smart connected product system & Digital Transformation
At the heart of John Deer’s product system is what is called a combine harvester. Their combine harvester harvests grain from fields, separates the head or the ear from the stalk, and divides the hulls, cobs, and the husks from the kernels of grain.
Today these smart connected combines have the ability to smartly monitor how many kernels came from a single patch of land, and how many kernels came from another.
In fact, they even collect, store, and send data to the cloud for the following season – so the machine is able to perform what is called a smart planting scheme.
During the smart planting scheme, the tractor hooks up to a tiler, which is basically a plow. As the plow works the soil, the equipment frequently fertilizes it, particularly with nitrogen. The equipment then follows its smart planting scheme – if the yield was low, nitrogen application should be high in a particular spot. If the yield was high, nitrogen should decrease.
Next from the connected product system comes the tractor pulling the planter that puts kernels in the ground for next year’s crop. It’s doing the same thing.
With a wide variety of seeds, the planter makes smart decisions for specific spots as needed. The smart connected equipment even knows when to use different drought resistant seeds in particular dry patches of land.
Smart products and the internet of things
John Deere created their own unique smart connected product system with the equipment they manufacture. By using smart connected devices, sensors, and building on top of an IoT platform, they slowly started to connect their entire product line.
This breakthrough in farming equipment enabled their products to work together and share data back and forth.
Farmers are now able to correlate their inputs and outputs, while reducing inputs and maximizing outputs. This means productivity and profits.
Taking it a step further, John Deere designed a smart farm system where, depending upon commodity prices, the equipment has the ability to plants different seeds.
Farms that irrigate now have the ability to place sensors in the soil to that read moisture levels. Using this knowledge, the smart equipment is able to determine whether it should apply more or less water to particular locations.
Agricultural equipment can now even assess upcoming weather forecasts and determine if irrigation is critical.
Today, John Deer is leading the way in utilizing IoT in agriculture.
New business opportunities with IoT
John Deere went from selling tractors to selling sophisticated information systems that can run smart farms.
With the technological advancements around today, a company like John Deere now has to determine the actual business they are in.
IoT presents new industry opportunity
Somewhere along the way, while developing smart connected products, John Deere became a software company and a systems integrator.
The internet of things presented John Deere with an opportunity to compete within an entirely new industry.
In fact, some say with this the new industry opportunity, John Deere even has the ability to compete with other well-known IT system integrators – such as Accenture.
The internet of things and smart connected products present a very interesting phenomenon, that’s happening right now.
Homes are beginning to transition to smart homes. Automobiles are starting to become smart. It’s happening everywhere you turn, even if in some cases it might be very subtly, or slow.
Products are evolving
Nike is another great example of how the IoT has started to accelerate and transform organizations.
Historically, Nike has made shoes, clothes and sunglasses – but today, their product line is now much more than that.
For Nike, it’s no longer just about clothes and shoes anymore. Their products have evolved from fitness equipment to fitness monitoring systems – driving personal health and wellness goals.
They too, started connecting their products by adding sensors into their shoes, clothes, and Fuel Bands. This has enabled their smart connected products to help people maintain physical fitness and health.
Businesses possibilities of IoT
With the real-world examples from John Deere and Nike, it’s easy see how businesses are starting to expand their industry boundaries with the internet of things.
The world is changing, smart connected products are continually evolving. What is your organization doing to stay ahead?
Explore the business possibilities of IoT for your organization
Organizations today are adopting valuable IoT solutions to lower operating costs, increase productivity, and develop new products.
The Internet of Things can offer your organization an opportunity to be more efficient whether its connecting devices with automated systems that gather information, analyzing IoT data, creating an action to learn from a process, achieving the pinnacle – remote control, support and maintenance.
We want to help you achieve your IoT objectives
Not sure what the advantages of IoT are for your organization? We would love to help you define and push your boundaries!
Our technology specialists are experts at devising what IoT solutions, devices, projects, and business models are best suited for your organization. Let’s have a conversation.
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.
The future of digital transformation is happening now, and it is driving the future of all industries. This article highlights just about everything you need to know about the impacts and trends involving digital transformation.
No matter where your company resides on its digital journey – or even if you have yet to start with digital transformation, this article is just for you.
What is Digital Transformation?
Digital transformation refers to the concept of applying innovative uses of digital technology to solve traditional business problems.
For example, in a narrower sense digital transformation might refer to a simple concept such as ‘going paperless’. Yet, on a larger scale, it might refer to ‘achieving digital business maturity’.
Digital solutions not only enable organizations to achieve new levels of efficiency through automation, but they also open doors for creativity and innovation (rather than simply enhancing and supporting traditional methods).
Although applying the use of digital technology to solve traditional problems can offer numerous business advantages, many organizations have yet to begin the journey with digital transformation.
Digital Innovation: Where to Start?
With numerous applications, methods, and strategies, it can be difficult to know where to even start with digital transformation!
If this is the case with your organization, – don’t worry, you’re not alone.
According to a research study performed by Accenture and the World Economic Forum, 80% of executives stated they were completely convinced ‘digital’ advancements would fundamentally change and transform their industry within the next 5 years!
That’s right. Eighty percent! … And they’re not wrong at all!
In fact, digital technology has not only already begun to transform industries, but it has also started to transform the way the world experiences products. Despite the ability to recognize the effects that digital processes will bring, only 17% of the studied executives stated they had a strategy in place to address the challenge of digital transformation.
This left a shocking 87% to admit they had no current digital strategy in place whatsoever! This is exactly why, if you have not yet started your digital transformation journey, it’s important to realize A) It’s not too late and B) You are not alone. There is no better time to start than now!
Organizations are realizing the significant impacts that the digital transformation era brings and how it’s going to drastically change just about everything when it comes to the way we do business.
The Impact of Digital Transformation
The process of digital transformation is creating entirely new ways of doing business. It has begun to create new experiences for customers while adding entirely redefined value propositions for mature product segments.
This era of digital transformation has started to impact and define what products are and what they mean to businesses and consumers.
Product perceptions are changing
Digital trends have also started to influence purchase decisions and sales processes. As the digital world has advanced, the average consumer is making purchase decisions with a Product as a Service (PaaS) mindset.
This means the rise of digital transformation has driven consumers to be sold by the outcome of the product – the recurring value. Manufacturers can address this shift in the market demand archetype by embracing three technology categories – Internet of Things (IoT), analytics, and mobile.
The future and advancement of technology is happening now
Established power plays and industry lines are beginning to blur. You cannot wait until some time in the near future to start your digital journey.
If your organization is going to succeed going forward, you won’t want to be left behind in this new industrial revolution, or you will fail.
Whether or not you’ve noticed if your industry has been affected yet, the key message is the effect of these disruptive technologies doesn’t discriminate one sector or industry. Every industry will see a major impact due to these digital technology advancements… And it is happening right now.
‘Business as usual’ is no longer an option. Organizations must adapt in order to survive.
The future of Digital Transformation: Smart, Connected Products
Digital transformation is reinventing products. Products from cars, to jet engines, to pumps, to heavy equipment, to medication, and more!
Machines, assets, and devices are starting to communicate, learn, and react to newly accessible context as they exchange and leverage data from sensors.
We are talking about the area of ‘living products’ – meaning transformative products that are responsive, collaborative, reactive, and responsible. Whether products are B2B or B2C, there will be a totally different process in the way we think about how our customers are using our products in the near future.
The future is now. Don’t let the opportunity slip away.
The first step in your digital transformation journey should be a strategic one. Understand where you are, where you want to be according to your current framework or understanding, and where you’d like to be as you embrace future technology and evolve with changing markets and new opportunities.
EAC Product Development Solutions would like to help you begin your transformation. We provide the people, technology, and services to make any transformation successful. The first step should be a Product Development System Assessment (PDSA). This will help you understand the opportunity that lies in front of you. Request more information on the PDSA today and start taking your digital transformation seriously.
Our Product Development System Assessment will help you start your digital transformation journey
Already know that you want to start dabbling in the Internet of Things (IoT) but have no idea where to begin? According to ARM, The Internet of Things Business Index, “A lack of IoT skills and knowledge among employees and management is viewed as the biggest obstacle to using the IoT more extensively.” EAC Product Development Solutions is offering the perfect way for you and your team to get started – with a hands-on IoT workshop.
This workshop, called the IoT Strategy Development Workshop, is pretty much what it sounds like…and it’s not just another class that delivers ideas of how the future is supposed to look. You actually get your hands dirty and work with your team to develop alignment between business initiatives, strategic frameworks, and vision statements. The workshop is 2 days and involves 4 different sessions including IoT Experience and Excitement, IoT Basics, Strategy Development, and a “Shark Tank” IoT pitch to peers.
Below you will find a transcript of a Q & A with Brian Ignaczak, Director of Research and Development at NORMA Group. Read about his team’s experience with EAC’s IoT Strategy Development Workshop. Contact us if you think this hands-on workshop would benefit you and your team.
NORMA Group develops AN IoT Strategy
Q: How did EAC’s IoT Strategy Development Workshop help you better understand IoT and how a smart connected product strategy could impact your business?
A: “The EAC IoT strategy development session showed us how we could add value through the use of data… it focused on the value-added business opportunity and helped us get over looking at just the gadget side of IoT.”
“I think the biggest takeaway we had from the EAC development session is that we were able to develop an IoT mission statement that aligned with our business initiatives. It brought together a number of stakeholders to put together an IoT plan that fit our organization. That has probably been the most durable product from our strategy session.”
Q: When did you realize the IoT could create more value for you and your customers?
A: “The EAC strategy development session helped us realize that IoT could be a big area of development for us. We want to be a technology leader. It fits with what we do. We want to stay on the cutting edge of technology and make sure that we don’t miss out on any revolution with respect to potential capabilities that we can add to our products. The session with EAC showed us many ways this could be possible.”
Q: In what ways did EAC’s strategy team help guide you to find your value drivers?
A: “EAC’s strategy team helped guide us to find our IoT value drivers through templates they had us work through. As we worked through the templates, we were able to see an underlining IoT strategy that suited our organization. These strategy templates forced us to fill in what we were really trying to accomplish with IoT.”
Q: How did your team define and prioritize potential smart connected product ideas?
A: “EAC helped us determine where exactly we were headed with IoT. We were able to thoroughly evaluate if we were trying to open up new markets or try and better serve our existing markets.”
“Looking at smart connected product ideas that our organization could pursue, we decided to focus on opportunities within our existing markets.”
“EAC helped us identify two main areas that smart connected products could fit our business model. The first had to do with addressing customer pain points through the creation of digital products. The second had to do with upcoming changes to the market that were coming via regulations. Their team really showed us smart connected products that could work as solutions for our organization.”
Q: What has been the biggest benefit of having a customized IoT plan to fit your company’s strategy?
A: “From EAC’s strategy development session we were able to determine an IoT framework that we now can discuss. It made our endpoint more concrete. We realized things we weren’t going to do versus things that were possible for us to do. They helped us identify how the revenue streams would flow based off of that.”
“EAC helped our company by setting a realistic IoT vision we are able to work towards.”
Q: What impact did EAC’s IoT processes have on your own strategy building sessions going forward?
A: “EAC helped us realize the importance of basing our IoT initiatives on our mission statement. The impacts of these processes remind us to continuously review that we are headed in the right direction.”
“The strategy sessions EAC held gave our company an anchoring point with IoT. Now, as new opportunities come up, we use the methodologies we were shown to develop products that will meet our vision.”
Q: Describe how EAC’s hands on connected product experiences provided a relatable IoT experience for you.
A: “EAC’s hands-on connected product experiences opened our eyes to the vast amount of data that can be produced. It made us realize how quickly data can be processed in real time. It showed us the vast quantity, the amount of processing power that is available, and how it could all be used to produce something of value.”
“Seeing live data stream on the computer screen and realizing how quickly that is communicated was pretty eye-opening.”
Q: How did the IoT Concepts presentation help frame a basic understanding of your current state and future opportunity that IoT provides?
A: “The IoT concepts presentation helped frame a basic understanding of our current state and future opportunity. It goes beyond technology and starts explaining how others have started to transform their business. The case studies really helped us to understand how some of our peers in the industry have begun to adapt to the changing technology and transform their business.”
Q: During the strategy development session, how did EAC help you realize the alignment between your business strategy framework and business statement?
A: “During the strategy development session, EAC had us break up into groups. We all developed plans and pitches based on an IoT implementation. From there, each group presented their idea to the wider audience. It was really interesting to see how different teams approached the opportunity. After the presentations, we had an open discussion as to what the pros and cons were of the different scenarios that were presented. We are currently moving forward with the winning concepts of those strategic plans.”
Q: Do you feel that EAC had the proper techniques, strategies, and knowledge behind IoT to help implement these new strategic initiatives?
A: “EAC absolutely had the proper techniques, strategies, and knowledge behind IoT to help implement our new strategic initiatives. They have been a very valuable partner for us throughout the process. They are the reason why we have been able to start moving forward with our development. We have made a lot of progress since then.”
Q: What might you say to other companies considering a strategy development session with the EAC specialists to develop or implement an IoT plan?
A: “I feel that EAC’s processes are a great way to jump-start IoT strategy development. Having an outside voice is a very important aspect of that. They come in with a different point of view and it really helped bring together the different viewpoints from our stakeholders and teams.”
“EAC’s processes definitely helped us push forward. (EAC) has been a really good partner in furthering what we’re trying to accomplish. For us, getting beyond just the technology side and really trying to build IoT into a business plan is one of the things that they have emphasized. They helped explore the best possibilities for us.”
“We have been more than happy with the engagement of EAC. We feel that they have a tactical view of how projects move forward. With IoT, there is a lot of uncertainty and there are many companies that don’t deal well with that. EAC helped guide us to explore and embrace the uncertainty of the emerging market.”
Is EAC’s IoT Strategy Development Workshop right for me?
Unpack the digital revolution within your company by developing an IoT strategy within your organization. NORMA Group found value in taking this 2-day hands-on workshop. Contact us to start your own IoT journey.
