
In today’s world, it’s not uncommon for companies to be rich in data but poor in insights. Despite having access to a wealth of information, organizations struggle to properly analyze performance and drive transformational improvements. This is where ThingWorx Digital Performance Management (DPM) steps in to bridge the gap.
This week in your factory, you’ve applied maximum effort, pouring countless hours into perfecting your product. As the work week ends, a feeling of slight disappointment remains.
Could you have accomplished more? Where did it go awry? You may not be able to find the answers on your own, leaving your factory inefficient and operating below its full potential.
If this is you, look no further. With the capabilities of Thingworx Digital Performance Management, you will unleash an untapped potential of data and boost your manufacturing processes.
What is Digital Performance Management?
ThingWorx Digital Performance Management (DPM) is a cutting-edge solution designed to help organizations identify, prioritize, and improve production issues.
By capturing lost production hours and their causes, DPM indicates where to focus for the most critical impact. Also, it optimizes the finite time available, allowing organizations to reclaim lost hours and increase effective time by 20% or more. Thus, directly impacting the bottom line.
How Does DPM Work?
Consider a manufacturing facility that can produce one unit per hour. In a week with 88 hours worked, the facility manages to manufacture only 44 units. Let’s say 12 hours are lost through planned downtime and 14 hours are lost due to changeovers.
That leaves about 18 hours unaccounted for. Where did those come from? With ThingWorx DPM, you can quickly identify issues, and why they happened, and then take appropriate actions to fix them.
Moreover, DPM calculates and analyzes discrepancies, providing valuable insights to improve productivity. DPM is a comprehensive toolset that propels organizations towards peak performance by tracking performance, conducting in-depth analysis, planning, and validating improvements.

The Production Dashboard
One feature included with DPM is the Production Dashboard. The visual dashboard is a crucial tool for supervising shift performance and gathering vital data to inform reporting and analysis. It is designed for supervisors and line managers to track productivity across various production lines.

Some key features of the Production Dashboard include:
Provides insights into shift progress at the production block level
Allows for automated and manual data entry, including reason codes to capture all losses
And offers a simplified interface to minimize disruption
Bottleneck Analysis
The Bottleneck Analysis tool is designed to automatically detect and monitor the most significant bottlenecks in your factory, providing valuable analysis and insights into OEE and OLE.
One of the challenges that customers face is a lack of visibility into bottlenecks, which leads to a disconnect between continuous improvement efforts and their impact on the business. However, bottlenecks are often dynamic and complex.
To address these challenges, DPM offers key capabilities to help identify and resolve:
Automatically identifying and tracking bottlenecks.
Systematic identification of the top constraints, which can significantly increase factory efficiency by 5-20%.
Management of the dynamic nature of competing bottlenecks.
Overall, DPM works relentlessly, making up for lost time by tracing the root cause of issues and providing precise remedies to ensure smooth and efficient functionality. Consider DPM an invaluable employee, working tirelessly around the clock without additional overtime costs!
Accelerate Problem Solving with DPM
DPM’s capabilities extend beyond surface-level analysis. By combining Pareto analysis and time loss analytics, DPM users can uncover and address a significant percentage of production problems.
Additionally, with the further integration of AI and machine learning, DPM streamlines the identification of patterns in data, resulting in faster problem-solving and decision-making.
For instance, a DPM user noticed quality losses between 3 p.m. and 4 p.m. Thanks to DPM’s automated analysis, the manufacturing team quickly determined that the issue was caused by a glare from the sunset, making the inspection camera unreliable.
All in all, DPM helped accelerate the problem-solving process saving valuable time and resources.
Reap the Benefits
Digital Performance Management is as remarkable as it sounds. DPM holds the secret to your production improvements and is ready to share them with you. Discover the plethora of benefits that are tied to DPM:
Standardized Measurement: DPM provides a consistent and standardized approach to measure losses, ensuring accurate evaluation of bottlenecks, and their impact on performance.
Efficient Root Cause Analysis: Leveraging AI technology, DPM identifies the root causes of bottlenecks and facilitates their permanent resolution, eliminating recurring issues.
Automated Problem Identification: DPM’s powerful AI algorithms automate the process of surfacing common issues, exponentially reducing the time spent on problem-solving.
Real-time Insights: What once took months to identify critical insights now becomes easily accessible through DPM’s intuitive interface, providing teams with immediate access to actionable insights.
Get Started with DPM Today!
In conclusion, if you want to revolutionize your performance management and take your organization to new heights, it’s time to embrace Digital Performance Management.
Remember, in today’s fast-paced world, those who leverage technology to gain insights and make data-driven decisions are the ones who thrive.
Are you ready to unlock the true potential of your organization with Digital Performance Management? Talk with an expert now to take your first steps toward success.

I’m sure at least once in your life you’ve heard the saying, ‘Work smarter, not harder.’ But what a cliche, right?! Well, for those of you managing your Bill of Materials (BOMs) in Excel, it’s time to step away from the cell block prison (pun intended).
In this article, we’re going to break down what it actually means to revitalize your BOM strategy with the Digital Thread to start seeing the results you want.
What Is The Digital Thread?
First of all, let’s start with the basics. The Digital Thread is a term used to describe the seamless flow of information throughout the manufacturing process. From design and engineering to production and after-sales support. It provides a way to connect all the data and information generated at different stages and from systems of the product lifecycle.
Generally, the Digital Thread provides value by enabling better visibility and control of any processes that require or produce product data. It enables manufacturers to collaborate more effectively, automate and optimize workflows, and quickly respond to changes. All while adjusting quickly to customer needs.
Bill of Materials (BOM)
Next, let’s break down the concept of a Bill of Materials. A complete Bill of Materials (BoM) list usually contains all of the parts and components needed to create or manufacture an end product. You might think of a BoM as a recipe ingredient list. The information about each part can include details such as part names, part numbers, quantity required, and cost per unit. Not to mention, BoMs contain other relevant part details such as material type, color, or size if applicable; supplier information; serial numbers, etc.
By consolidating and organizing all the pertinent information product information, the BoM becomes a centralized resource. A critical resource that facilitates the manufacturing processes of specified products.
Ultimately, the goal of the BoM is to help track inventory and verify missing parts during assembly. Equally as important, BoMs are critical to support a healthy supply chain, as well as help with purchasing decisions and more.
The Digital Thread and Bill of Materials Working Together
Balancing a plethora of product information – it’s no surprise, the best BoM management strategy used within the industry does not leverage solely Microsoft Excel. Nor does it rely upon one Enterprise resource planning (ERP) system. Instead it works to unite data from multiple systems into a single source of truth.
Sounds great doesn’t it? But, if you’re like most – your product data lives all over the place in different systems from different departments. This situation tends to create data siloes resulting in time-consuming manual tasks using outdated operational processes. Generally, these are some of the biggest problems that inhibit manufacturers from achieving their business initiatives.
Oftentimes, during our EAC Assessments, we hear multiple teams across the enterprise and different management levels are frustrated by broken processes. In short, there is a lack of key information employees need to do their jobs right, at the time they need it most.
Meanwhile, the digital thread uses advanced technology (such as product lifecycle management systems as well as the Internet of Things) to connect critical disparate processes. This, in turn, helps minimize manual tasks, and breaks down data siloes. Implementing the digital thread to your BoM strategy creates a major impact for all stakeholders involved. For instance, design teams, engineers, manufacturing, assembly, operations, finance, purchasing, and even marketing.
How The Digital Thread Supports Engineering
Furthermore, the Digital Thread plays a crucial role in supporting engineering and bill of materials (BOM) management by providing seamless connectivity and accessibility to relevant data throughout the product lifecycle. Here’s how the digital thread benefits these areas:
1. Engineering Collaboration
Firstly, the digital thread allows engineers to collaborate effectively by providing a centralized platform for sharing and accessing engineering data. This facilitates cross-functional collaboration, enables real-time communication, and reduces errors or miscommunications during the design and development process.
2. Design Consistency
Secondly, the digital thread ensures design consistency by maintaining a single source of truth for engineering data. Changes made in the design phase are automatically propagated throughout the digital thread, ensuring that all related documents, models, and specifications remain synchronized.
3. BOM Accuracy and Visibility
The digital thread integrates BOM management, configuration management, and BoM transformation capabilities. This enables accurate and up-to-date BOMs, as the data will automatically reflect changes. Additionally, it provides real-time visibility into the BoM status, including component availability, sourcing information, and cost implications.
4. Change Management
Next, the digital thread streamlines change management processes. By automating change notifications, approvals, and tracking. Essentially, it ensures that engineering changes are effectively communicated, documented, and implemented across the relevant stages of the product lifecycle, minimizing errors and delays.
5. Manufacturing Process Optimization
By connecting engineering data with manufacturing process management, the digital thread enables better coordination and optimization of production processes. By in large, system and data integration allows for improved manufacturing planning, efficient resource allocation, and reduced lead times.
6. Enhanced Visualization and Analysis
Another example includes leveraging augmented reality (AR) design sharing to provide visual representations of designs. In detail, enabling stakeholders to view and analyze products in a virtual environment. It’s recommended to use AR to enhance design reviews, simplify communication, and facilitate better decision-making.
Overall, the digital thread improves engineering and BoM management. Markedly, by streamlining processes, enhancing collaboration, ensuring data consistency, and providing visibility across the product lifecycle. It promotes efficiency, accuracy, and agility in engineering and BoM-related activities. Leading to improved product quality and faster time to market in the long run.
How A Digital Thread BoM Strategy Streamlines Manufacturing
Simultaneously, the digital thread plays a significant role in enhancing the bill of materials (BoM) management for manufacturing, assembly, and quality control processes. In sum, here’s how the digital thread benefits these areas:
1. Manufacturing and Assembly Planning
The digital thread enables seamless integration between the BoM and manufacturing planning systems. It provides real-time visibility into the BoM, ensuring accurate and up-to-date information for manufacturing and assembly operations. This allows for efficient production planning, optimized resource allocation, and improved scheduling in all.
2. Supply Chain Integration
By connecting the BoM with supply chain management systems, the digital thread enhances supply chain visibility and collaboration. It enables better coordination with suppliers, accurate tracking of component availability, and improved procurement processes. As a result, it minimizes the risk of production delays and ensures timely delivery of materials.
3. Work Instructions and Assembly Guidance
Thirdly, the digital thread facilitates the creation and dissemination of detailed work instructions and assembly guidance based on the BoM data. This ensures that assembly operators have access to accurate and step-by-step instructions, reducing errors and improving productivity on the shop floor.
4. Quality Control and Traceability
The digital thread enables better quality control and traceability throughout the manufacturing process. By integrating the BoM with quality management systems, it ensures that quality requirements and specifications are adhered to during production. It also enables traceability of components and materials, making it easier to identify and address any quality issues or recalls.
5. Continuous Improvement and Feedback Loop
Additionally, the digital thread supports continuous improvement initiatives by capturing data and feedback from manufacturing and quality control processes. It enables the analysis of production data, identifies areas for improvement, and facilitates data-driven decision-making to enhance manufacturing efficiency and product quality.
6. Post-Market Monitoring
Finally, the digital thread extends beyond the manufacturing phase to support post-market monitoring and quality assurance. Integrating BoM data with field service management systems and customer feedback enables organizations to identify and address product issues, initiate product improvements, and provide timely support and maintenance.
All in all, the digital thread enhances BoM management for manufacturing and assembly processes by ensuring accurate and up-to-date information, facilitating supply chain integration, enabling effective work instructions, improving quality control, supporting continuous improvement efforts, and enabling post-market monitoring. Concurrently, it streamlines operations, improves product quality, and enhances customer satisfaction.
The Polaris Story
Polaris utilized PTC Windchill, an advanced product lifecycle management system, to transform their Bill of Materials into a reliable new business model backbone. As a result, it allowed them to create a connected enterprise.
Windchill PLM combines the digital thread framework with a maximized BoM and change management strategy. This powerful product lifecycle management platform organizes all information associated with the development of its products, allowing every stakeholder to access the latest up-to-date information in a dynamic format.
Once it was clear to Polaris that they had outgrown certain tools and processes, they coordinated and synchronized a digital thread of data throughout the enterprise by leveraging PTC Windchill.
As of today, Polaris’ Windchill PLM system enables them to manage and organize the bill of materials (BoM) and implemented configuration management practices. This helped transform their BoMs as needed, effectively managing changes, overseeing manufacturing processes, and utilizing augmented reality (AR) design-sharing capabilities.
By orchestrating these elements, the digital thread ensured seamless connectivity and flow of information across different stages and departments within Polaris. This enabled improved collaboration, streamlined workflows, effective change control, and enhanced manufacturing processes. On top of giving the ability to share and visualize designs using AR technology.

Conclusion
To sum it up, it’s time to put Excel away and start working smarter, not harder. Successful BoM management derives from a single source of truth throughout the enterprise in regard to all the data contained in the Bill of Materials. The Digital Thread allows for the seamless automated flow of the BoM information to create a truly connected enterprise, working in sync along every step of the manufacturing process.
Not sure where to get started? We created our EAC Assessments to help. Click here to learn more or have a conversation with our experts.

Digital transformation has become a buzzword in recent years, and for good reason. Companies that embrace digital technologies are more likely to stay ahead of the curve, differentiate themselves in the marketplace, and meet the evolving needs of their customers.
The benefits of digital transformation can be far-reaching, from improved customer experience to cost savings and increased efficiency.
In this blog, we will explore the various benefits of digital transformation, and why it is essential for companies to embrace this trend in order to remain competitive in the digital age.
What is Digital Transformation?
Digital transformation is a term used to describe the process of transforming an organization’s business model and operations through the use of digital technologies. It’s important because it can help you stay ahead of your competition, improve customer experience and attract new customers.
The benefits of digital transformation include:
- Improved customer experience: Digital transformation can help you better understand and meet the needs of your customers. With the use of data analytics and other digital tools, you can gather insights into customer behavior and preferences, and tailor your products and services accordingly.
- Increased efficiency and productivity: Digital transformation can automate many processes, reducing manual labor and freeing up staff to focus on higher-value tasks. This can lead to increased efficiency and productivity across your organization.
- Competitive advantage: By embracing digital technologies, you can stay ahead of your competitors and differentiate yourself in the marketplace. This can help you attract new customers and retain existing ones.
- Cost savings: Digital transformation can help you reduce costs by streamlining processes and eliminating unnecessary steps. This can lead to significant savings over time.
- Innovation: Digital transformation can open up new opportunities for innovation and growth. By embracing new technologies and ways of working, you can develop new products and services that better meet the needs of your customers.
See how JR Automation saved seven figures with embarking on their digital transformation journey:

Creating a Digital Transformation Roadmap
The first step to creating a digital transformation roadmap is to identify the scope of your transformation. What are you trying to achieve? What are the goals and objectives of your business? How will you measure success?
Once this has been determined, it’s time to set up a timeline for achieving those goals.
Once these steps have been completed, it’s time for action! You should now have a clear idea of what needs changing within your organization and how long it will take before those changes become visible.
Building a Digital Transformation Team
When you’re building your digital transformation team, it’s important to define roles and responsibilities. You’ll want to make sure that everyone understands their role in the process and what they are expected to do. For example, if someone is responsible for monitoring the performance of shop floor machines, they should know what the ideal OEE is of each machine, how they are going to collect that data, and how they are going to distribute it to enterprise decision makers.
It’s also important that you select team members who have complementary skillsets and experience levels. If one person has extensive knowledge of augmented reality while another knows nothing about it at all, this could lead to problems down the line when it comes time for them both to collaborate on projects together – and no one wants that!
Finally, creating a culture where collaboration happens naturally between team members will help ensure successful outcomes throughout your digital transformation project(s).
Adopting the Right Technology
The first step in digital transformation is choosing the right technology. You’ll want to consider:
Software: What are your current needs and how will they change over time? Will you need additional features or functionality?
Hardware: Do you have enough computing power and storage space for all of your data, or does it need to be scaled up or down depending on usage patterns at different times of day/year/etc.? Do you have sensors to track data that you need for production insight?
Tools: What tools do developers use to build applications on top of this platform (e.g., Creo vs. Solidworks)? How easy is it for them to integrate their code with existing systems like databases and messaging queues? Are there any security issues with using these tools – and if so, how can they be mitigated by using another tool instead (e.g., switching from MySQL database server software to Microsoft Azure).
Developing a Digital Transformation Strategy
The first step to developing a digital transformation strategy is to define the scope of the project. What are you trying to accomplish? What are your objectives, and how will you measure success?
These questions can help guide your organization through its transformation journey by setting realistic goals for both short-term wins and long-term gains.
Once you’ve defined what needs changing, it’s time for step two: defining how those changes will happen. This involves creating an action plan that includes timelines for each phase of implementation as well as resources required for each stage (e.g., time from IT staff).
Some companies may choose to tackle multiple projects simultaneously; others might choose only one area at a time depending on their resources available in terms of money/manpower/etcetera).
EAC Assessments help companies answer all those questions and how to get where they want to be.
Implementing the Digital Transformation Plan
Develop a timeline. The first step in implementing your digital transformation plan is to develop a timeline with milestones that will help you track progress.
Set goals and objectives for each milestone. Once you’ve established your milestones, it’s time to set goals and objectives for each one of them so that everyone involved knows exactly what needs to be done at any given time during the project.
Track progress regularly by reviewing dashboards or reports generated from data collected during testing phases of development projects (if applicable). It’s important not only for managers but also employees on lower levels within organizations who may not have access
Monitoring and Evaluating Performance
Monitoring and measuring performance is an important part of the digital transformation process. It allows you to identify areas where you are successful, and areas that need improvement.
Monitoring can be done using a variety of tools, including:
Data Analytics Dashboards (e.g., Thingworx Analytics)
Real-time Data Share (e.g., Windchill, EAC Productivity Apps)
Digital Twin Performance (e.g., Augmented Reality)
Adapting and Adjusting the Plan
As you progress through your digital transformation, there will be changes in the market that you need to respond to.
If a competitor introduces a new product or service, or if something happens in the industry at large, it may change how you approach your own strategy.
You might also find that your goals and objectives have changed since they were first set out; perhaps there’s been an increase in customer demand for something specific that wasn’t previously considered important enough for inclusion on the list.
The best way to handle these situations is by reviewing them regularly with other members of your team – and making sure everyone has input into decisions about how best to adjust course as needed.
Communicating the Benefits of Digital Transformation
In order to communicate the benefits of digital transformation, it’s important to understand who your stakeholders are and what they want.
If you’re working in an organization with a large number of stakeholders (such as a government agency), then there may be multiple groups that need convincing. For example:
The board wants to see results from their investment in IT infrastructure. They’ll likely be interested in metrics such as ROI and cost savings.
Executives want quick wins that will help them achieve their goals, but they also need proof that this new approach will work before they can commit time and resources to implementing it throughout the organization.
Employees want something tangible they can hold onto when explaining why this change is important for them personally (and why it matters).
Conclusion
Digital transformation is a powerful tool that can help you achieve your business goals. It’s important to remember that digital transformation is not just about implementing new technologies, but also about changing how you work and think as an organization.
Digital transformation requires commitment from everyone involved in the process – from the C-suite down through every level of your organization.
To be successful, it must be an ongoing effort rather than a one-time project or initiative. You will need to continuously innovate and improve what you’re doing if you want to stay ahead of competitors who are also pursuing digital transformation strategies.
In conclusion, digital transformation is becoming increasingly essential for companies to stay competitive and meet the needs of their customers in the digital age. However, the process of digital transformation can be complex and challenging, which is why EAC assessments can be extremely helpful.
By conducting an assessment of your organization’s current digital capabilities and identifying areas for improvement, you can develop a roadmap for digital transformation that is tailored to your specific needs and goals.
EAC assessments can help you identify gaps in your digital capabilities, streamline your processes, and develop new products and services that better meet the needs of your customers. By embracing digital transformation and leveraging the expertise of EAC assessors, you can position your company for success in the digital age.

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.
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.
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.