As the advancement of digital technologies such as IoT is at peak, every next product or services calls for its digitization. Well, it appears to be a profitable opportunity for makers and operators of things to give a new dimension for unlocking a new value proposition from the lifecycle of things and to drive innovation and enhancing its quality.
Within this context, things such as medical devices, consumer goods, automobiles and factory machines, requires the embedded software which plays a major role in its effective implementation of the overall product development process. That means, connecting the endpoints for converting the product to be digitally tuned.
While connecting products, the potential points are the key:
- When products are functional, it is likely to assemble the operational data from them constantly.
- The remotely up gradation of software which is already embedded in the product.
- Product makers can obtain continuous information on the performance of products in different market segments through the presence of social media.
To optimize such enablers, product makers must transition from traditional development processes. The processes must be much more strong and agile to utilize the connectivity and advanced engagement of connected products.
Since Internet of Things (IoT) is a top forerunner of the much-needed change for industrial companies across the world, with nearly three-quarters of European manufacturers expecting to raise their IoT expenditures in the near future.
As per the research conducted by Pierre Audoin Consultants (PAC), which is part of CXP Group and on the basis of interviews with 250 senior-level business and IT decision-makers, the study was conducted to explore the ways European industrial companies pursue IoT initiatives from the perspective of investment, implementation, and strategy. And thanks to the influx of new digital technologies, manufacturers globally have now been considering IoT as one of the top 10 technologies such as physical robots, artificial intelligence and process automation—-that’s expected to inundate with respect to business impact between now and 2025.
Key findings by PAC
- 72% of industrial companies in Europe will raise their expenditures in IoT in the next three years. 75% of discrete manufacturers were somewhat likely to invest in IoT as compared to those in the process manufacturing segment(67%), which gives the confidence to face strong customer- oriented segments such as automotive, electrical appliances and consumer goods.
- 60% of the participants were at the implementation phase of their IoT initiatives, though primarily in the proof-of-concept stage.
- Cost reduction was named as the biggest enabler for IoT initiatives, as per 89% of companies. This doesn’t come as an astonishment as many companies have rigorous margins and expensive industrial machines and systems integrated into composite production processes. Industrial companies are considering IoT solutions that combine their operational technology with existing IT infrastructure that includes applications such as asset monitoring or predictive maintenance.
- New business models and product improvement took the second stage, which shows the possibility of IoT investment for contributing to top-line growth. This way, IoT applications have the avenues for converting manufacturers into service providers. The example consists of smart, home appliances and connected wearables. Such services can either be free and cater to as a differentiator or can create additional revenue streams, such as integrated car services.
- The IoT investment decisions are taken within IT departments comprising top business executives which have consequential influence in specific countries like Germany and when initiatives are enterprise-wide. Companies should build closer working relationships between technology decision makers and business, as influential leaders in transforming the direction of IT investment. They also need to give progression to innovation happening at the business edge and create best practices at the heart of an organization. This is usually attained by reputed centralized digital units lead by chief digital officers or even chief IoT officers that overlook the entire spectrum of IoT initiatives.
- 71% of the respondents consider the realization of the ROI of their IoT investments in one to three years. There is a need for a formal IoT strategy for industrial companies in order to realize ROI and which encloses three types of initiatives: Smaller scale projects that give IoT benefits, perhaps with the help from smaller, innovative third parties such as medium-term initiatives, start-ups which includes rethinking of entire processes and ensuring the business to run more efficiently; and large-scale initiatives to formulate new products or strategies for accessing the additional revenue streams. These larger projects should be commenced at once a particular level of internal efficiency is attained, and companies should follow these with the help of third-party specialists.
- 70% of companies believe that privacy concerns and data security comes at the top priority list of IoT challenges. There stands to be an increase in the number of significant entry points into the network. With IoT, every asset or connected machine becomes a ceiling that could significantly be infringed if not perfectly secured.
- 30% of the companies are already employing the IoT data in their daily business decision-making activities, while 54% of the companies plan to do so in the next three years. It is the IoT data that confuse many of the end users. Industrial companies need to have a perfect strategy either on their own or with the help of third parties along with a supporting infrastructure with respect to cloud-based tools and applications that can adapt to the analysis of a variety of data arising from IoT devices.
- Majority of 50% of companies depend heavily on IT services companies and consulting firms to seek help with IoT. Despite showing a particular confidence level in their internal ability to situate, IoT industrial companies are working jointly with the third-party providers.
Top 10 IoT Companies in the Manufacturing Industry
- Palle Tech
- New Icon
At last, IoT solutions welcome the innovation and allows the industrial organizations for renewing their value proposition by providing new services around connected products as well as collecting customer data for deeper insights and monetization. As compared to various digital solutions, IoT will be essential for manufacturers across the globe to compete in the digital age.
Nirav Shastri is a Sr. Digital Marketing Expert at Space-O Technologies that offers technologically advanced Internet of Things solutions and Mobile Application services. He has over 7-year experience in the IT industry that inspires him to share his knowledge through articles. In his free time, he prefers reading about new technology and trends.