The rise of the Internet of Things (IoT) has revolutionized how we interact with various devices, presenting many innovative business opportunities across various industries. IoT represents a hidden treasure for hardware manufacturing companies, offering the potential to unlock new revenue streams by transitioning from traditional one-time hardware sales to intelligence-as-a-service providers.
So why do companies manufacturing hardware, equipment, machines, etc., need to expand their business beyond traditional business models and embrace intelligent approaches? This article discusses how manufacturing companies can harness digitalization to provide ongoing intelligence-as-service for their most important clients through intelligent software design, data engineering, and product roadmap consulting.
Embracing intelligence-as-a-service model from a one-time sales model
Traditional hardware manufacturing businesses focus on merely selling their devices or machines to customers, and there is limited engagement with them after the initial purchase. In today's fast-paced digital environments, IoT and data-driven insights are becoming essential for adapting to changing customer requirements and market conditions. Manufacturers can gain the best advantage out of this challenge. That is by transforming their products into intelligent hubs that gather and process real-time data, providing valuable insights to clients. This transition allows manufacturers to shift from a one-time sale of their products to an ongoing service-oriented business model.
This shift towards intelligence-as-a-service requires integrating intelligent software and capabilities into the hardware to provide clients with ongoing intelligence by leveraging intelligent software, data engineering, and product roadmap consulting.
How can hardware manufacturers transform their business with IoT?
Transform your hardware devices into IoT hubs.
An IoT hub is a cloud-based central hub for communication between IoT devices and applications. Various industries already use IoT hubs, including manufacturing, healthcare, and transportation. Hardware devices can be transformed into IoT hubs by establishing connectivity and integrating sensors and intelligent software.
Manufacturers must establish a robust cloud infrastructure to store and process the collected data. This involves setting up servers, databases, and data analytics tools to handle the scale and complexity of IoT data. Hardware devices transformed into IoT hubs can collect data from various sources, including sensors and cameras. This data can be used for various purposes, including equipment performance monitoring, identifying potential problems, and optimizing manufacturing operations.
Data engineering is crucial for transforming hardware devices into IoT hubs for the Intelligence-as-a-Service model. It involves implementing secure storage and processing systems. Also, collected data from IoT devices should be able to be efficiently processed and analyzed to generate meaningful insights. Data engineering also involves data transformation activities to ensure the accuracy and reliability of the information produced from the devices.
Product roadmap planning is another important aspect of transitioning from hardware devices to IoT hubs. Companies must have a clear product roadmap to transition to an intelligence-as-a-service model. This involves identifying customer and stakeholder requirements and aligning this transformation with the business goals. For these efforts, consulting services can guide them to improve their business operations and decision-making processes.
Overall, hardware devices should transform into intelligent systems integrating workflows, devices, and people. This integration empowers companies to offer sophisticated solutions that enable their clients to optimize operations, improve efficiency, and make data-driven decisions.
How this transformation benefits businesses and customers?
Generating new revenue streams for businesses.
Transforming hardware devices into IoT hubs opens new revenue streams for businesses. Instead of depending only on a one-time device sale, companies can offer valuable services to customers.
For example, consider a construction equipment manufacturer transitioning from only selling construction equipment to the Intelligence-as-a-Service model. Such equipment integrates IoT sensors and intelligent software for real-time data monitoring and analytics. Integrating such IoT capabilities into construction equipment allows the manufacturer to collect real-time data on equipment, such as usage patterns and maintenance needs.
The manufacturer can offer customers a centralized platform to monitor their equipment's performance. The manufacturer can charge customers a monthly or yearly fee for accessing this platform. Thus, this model opens opportunities for renting and selling such platforms for customers. Instead of selling these services, the manufacturer can offer flexible pricing options varying the features for each pricing option.
Improves operational efficiency
By transforming their products into IoT hubs, hardware manufacturers can provide their customers with valuable insights into usage patterns, performance, etc., that can help improve their business operations.
For example, suppose a wind turbine manufacturer transitions from a traditional one-time hardware sale to an Intelligence-as-a-Service model. They offer smart turbines with advanced sensors and intelligent software connected with a cloud-based analytics platform as a complete solution. These smart turbines can collect valuable data such as wind speed, temperature, and maintenance parameters. This data can be securely transmitted to the manufacturer's analytics platform. Customers can access those data through the cloud platform and get actionable insights into turbine performance, maintenance needs, and optimization opportunities.
Simplify the management of field operations in real time.
Transforming hardware devices into Intelligence-as-a-Service models can simplify real-time field operations management. Such devices can automate and streamline workflows by eliminating manual tasks and improving efficiency.
For example, suppose an engineering and procurement company transforms its hardware devices, such as field instruments, measurement tools, and communication devices, into IoT hubs. The intelligent IoT hubs consist of sensors that can capture data such as temperature, pressure, and other relevant metrics from field instruments and equipment in real time. The company can then monitor and assess the performance of its systems without the need for manual data collection or on-site visits. This real-time data collection simplifies monitoring, saves time, and enables proactive decision-making.
In conclusion, the future of device manufacturing lies in the transformation from traditional one-time sales to intelligence-as-a-service models, and those who embrace this transformation have the opportunity to thrive in a rapidly evolving market. By leveraging digitalization, manufacturers can transition their hardware devices into IoT hubs that provide intelligent services to clients. Hardware devices can be transformed into IoT hubs by establishing connectivity and integrating sensors and intelligent software. This transformation allows manufacturers to avoid relying solely on hardware sales, offer customers valuable insights, generate new revenue streams, and yield many more benefits.