Top 3 Tangible Benefits of IoT for a Rock Solid Business Case

Top 3 Tangible Benefits of IoT for a Rock Solid Business Case

Today, enterprises are faced with a number of challenges, including reducing cost, supporting revenue growth, increasing efficiency, and more.

When manufacturers and service professionals think of the IoT, “digital transformation” and “scalability” may come to mind. But many teams like yours are still on the hunt for proof points that elevate the buzzwords to truly tangible benefits.

As enterprises investigate and develop plans to pursue an IoT strategy, they recognise the need for data to support a business case. How can manufacturing and service teams alike judge the advisability and associated risks of getting started with IoT? This blog article provides the proof behind the tangible benefits.

1. Reducing Costs

Reducing costs can be an elusive goal for manufacturers dealing with limited visibility into KPIs, asset health, and workforce performance. By launching a digital transformation strategy, manufacturers get the real-time data needed to:

This enables manufacturers to compare planned vs. actual execution times and identify needs for worker productivity improvements.

For example, automotive parts supplier HIROTEC AMERICA leverages the IoT to decrease costs, effort, and development time.

Technology solutions provider Bell and Howell leverages the IoT to increase the percentage of remote machine maintenance, which reduces truck roll costs.

2. Increasing Revenue

Manufacturers today struggle to map out the production value of their machinery and man-power due to ineffective maintenance, equipment, and employee scheduling. At the factory floor level, reactive, paperbased operations can also hinder revenue growth. Implementing a digital transformation strategy helps manufacturers speed maintenance, reduce downtime, increase asset utilisation, lower costs, increase operational performance, and improve safety and compliance.

Service professionals find it difficult to leverage service as a revenue generating source—instead, they largely view it as a cost center. An IIoT-based service strategy can help drive revenue by introducing new billing models, enabling enterprises to identify new revenue opportunities and service offerings, and allowing service professionals to monitor a wide variety of equipment.

Leading control system manufacturer Woodward, Inc. leverages the IoT to get full visibility into the manufacturing process, including digitally-based business unit- and geographyspecific work instructions. Similarly, after implementing IoT, 40% of sales at Heidelberg, a leading printing press manufacturer, are now from service. 

3. Improving Efficiency

Improving asset efficiency is a key goal for manufacturers and service teams alike. Pre-digital transformation, manufacturers struggle to get comprehensive views of the plant floor. With observation-based monitoring, paper-based work instructions, and preventative maintenance, factories can’t reach optimal performance. With digital transformation, manufacturers can use data and analytics to monitor asset health in real-time, and in-context, digital work instructions help operators know how and when to fix any issues.

Improving service efficiency is a top objective for service teams—but when faced with limited resources and inefficiencies that extend service call time-to-resolution, streamlining service is a challenge. When service teams achieve digital transformation, they leverage realtime remote monitoring and alerts that speed issue recognition and resolution time.

Beverage industry leader Carlsberg Group leverages the IoT for the visibility needed to monitor downtime and increase packaging line performance and uptime.

Biotechnology leader Illumina implemented IoT and received a 30% reduction in service case duration.

Getting started with IoT harnesses the promise of “digital transformation” and “scalability” for reduced cost, increased revenue, and improved efficiency. Ready to uncover more proof points and launch your digital transformation strategy? Get started today.

 

Quantifying the Business Case for the IoT

Companies today are under tremendous pressure to deliver a higher quality of products and services at lower costs. Any expenditure companies do make is expected to deliver a measurable ROI. For product manufacturers in particular, ROI has traditionally translated to “reduce costs.”

However, cost is just one piece of the ROI equation. The IoT is creating new opportunities for companies to enhance their services, gain business insights, improve processes, and differentiate their offerings. In this ebook, you’ll learn;

  • Metrics for integrating smart, connected product data,
  • Translating product data into value,
  • Connecting data and business process efficiency,
  • Differentiated products that change the customer experience
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