The Industrial IoT Revolution is happening now.

Smart products and systems are delivering transformative value for manufacturers – from smart mining equipment, to precision agriculture, connected food processing machinery, and every sector in between.

The rapid growth of Industrial IoT (IIoT) translates into a significant market opportunity. By 2025, McKinsey estimates that IoT will have a yearly economic impact of $4 trillion to $11 trillion. IIoT use cases will account for close to 70% of the projected value – versus 30% of consumer IoT use cases.

Manufacturers are taking advantage of the IIoT opportunity to meet their business goals, while delivering new value to their customers.

Based on hundreds of use cases, we have synthesized the top four business benefits for manufacturers that embrace IIoT.

1. Create new business models

IIoT provides manufacturers a range of new business models, the most important of which is the ability to turn products into services.

Digital services drive new revenue for a product in-market, like a subscription model where customers can unlock premium control and monitoring features for machinery.

Data services are another key service manufacturers offer to improve user experience and increase adoption. Insights from machine sensor data can be provided to customers to help drive compliance adherence, minimize machinery downtime, enhance worker productivity and safety.

German automotive company, MAN, tracks a truck’s raw data in real-time and translates it into a report offered as a paid service to customers.

2. Enhance innovation process and brand identity

Forward-thinking companies are constantly innovating and looking for ways to lead their industry. The culture of creativity inside organizations is key to improve products, come up with new product concepts and turn ideas into market disruption, quickly and profitably.

IoT allows companies to reimagine how their products should look, act and react as well as the data they can collect. In-market analytics provide insights into how users are engaging with the product for making informed decisions about improvements and understanding the wants and needs of customers.

Innovative products and systems have the added benefit of strengthening the brand of a company and providing a competitive advantage.

Stanley Black & Decker introduces 1,000 new tool and storage products each year. As part of their investment in a company culture of innovation, product teams prototyped and pitched smart power tools for disrupting the industry with the first IoT tools.

3. Achieve customer-centricity

To compete in a rapidly changing global economy, manufacturers are constantly looking for ways to build stronger relationships with their customers.

Manufacturers are leveraging IoT to focus on customer needs and the best solutions for meeting them. Smart systems can provide a range of valuable outcomes for customers, like the ability to track health and safety compliance, improve worker oversight, utilize assets more efficiently and increase facility production and operations.

For instance, machinery and equipment firm Caterpillar uses IoT to enable their customers to monitor and optimize fleets of ships. By tracking fuel data and providing necessary insights into optimal operating parameters, customers are able to utilize their ships more efficiency.

4. Provide proactive repair and service

According to Deloitte, poor maintenance scheduling can decrease the productivity of a plant by 5-20 percent. IoT changes this equation with predictive maintenance – the ability to understand when machine parts will require repairs and how to best schedule maintenance based on monitoring analytics.  

Predictive maintenance can provide manufacturers and customers with automatic reports for strategic maintenance scheduling and proactive repairs. This ability reduces maintenance time by 20–50 percent and decreases overall maintenance costs by 5–10 percent. Saving both the manufacturer and customer time and money.

ThyssenKrup is reducing elevator downtime by monitoring everything from motor temperature to shaft alignment, enabling technicians to use real-time IIoT data to spot issues before a breakdown occurs and reduce repair time.

Interested in learning more on developing IIoT and taking advantage of its business benefits? Join Seebo’s IoT Product Strategy and Ideation Workshop.


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Jackie Retig
Jackie is a marketer, writer, avid coffee drinker and life traveler.