For product manufacturers, it is important to embrace new technologies and implement and integrate modern systems and processes, if they want to keep up with the competition.
Both consumers and enterprise want to make their lives easier and with smart and connected products there are countless possibilities and multiple real-world applications that are helping to make a positive difference.
Gartner estimates that next year there will be in the region of 26 billion connected devices – and this doesn’t include computers, tablets or smartphones. So, for product manufacturers who are not looking into this are surely going to suffer in the long term.
So, what are the differences between Smart Products and Connected Devices?
There seems to be a little confusion and often debate as to what constitutes a smart product and what is a connected device. For me, a smart products primary aim is to make its users lives easier, whereas a connected device is something that was not typically connected to the internet but now with the help of sensors and IoT capabilities, can gather or receive data, along with other basic intelligence.
Product-Based Business Models
According to numerous global market intelligence companies, the connected products market will be worth up to $457 billion by the end of next year. However, manufacturers in the UK are not rushing to be a part of this connected world? The awareness is there but the reluctance to re-think their business models and embrace digital technologies is quite hard for them to grasp and will require a bit of hand holding and direction.
Recurring revenue models
However, this reluctance should be pushed to one side - as soon it will be common place that everything will move away from a simple product purchase and instead will become a subscription pay-for-use or service model. Historically, manufacturers have lost control of their product once it leaves the factory. By connecting their products, manufacturers can now track, manage and control product information at any phase of its lifecycle at any time and any place across the globe.
One of our enterprise customers made the journey to a service-based model and now utilises the data from all their connected devices to enable efficient maintenance by having real-time data analytics that provides predictions and helps spot potential problems before they become a major issue. Not only has this massively improved its contracted service levels, its also made repairing faults much quicker and more efficient and has helped build customer loyalty by creating a great customer experience. It has also allowed them to gain a recurring revenue on top of the original product sale and greatly increase their profits.
Connecting with InVMA
The Internet of Things is now transforming the way companies design, sell, support and service their products and by collecting real-time data it unlocks a whole new range of possibilities to increase profitability, build passionate customer loyalty, and accelerate data-driven decision making.
If you are looking to discover how smart connected products and devices are generating value amongst our customers and how you can achieve substantial returns, then have a chat with one of our team and view an on-line demo.
Simply complete the form and one of the team will get back to you to book in your initial conversation.
In their second Harvard Business Review article, How Smart, Connected Products Are Transforming Companies, co-authors Michael Porter of the Harvard Business School and Jim Heppelmann, President and CEO of PTC, examine the impact of the Internet of Things on companies' operations and organisational structure.