Using IoT Data to Understand How Your Products PerformHBR June 2016
General Electric has announced that it will spend $1 billion dollars onn IoT.
Survey of 795 large companies (average revenue of $22 billion) in North America, Europe, Asia-Pacific, and Latin America by TCS found that average per-company spending on IoT initiatives — was $86 million in 2015. It is projected to grow to $103 million by 2018.
Use of IoT is increasing. Producers are installing sensors in their products.
But, only 6% of companies selling products with less than $100 price tags had embedded wireless sensors in their offerings. In contrast, 54% of companies whose products’ average sales price was between $1 million and $10 million did have digital sensors that communicated product performance back to them.
Four key elements to use IoT to get the ultimate truth on product performance:
1. Getting customers to agree to have their products monitored, which in turn means giving them something of value in return. Customer must have some benefit.
2. Product performance data must be processed and acted upon quickly. Real time data analysis capability has to be developed.
3. A culture that accepts the truth, however bad. Companies have to accept bad performance of their products and communicate to the customer the anticipated problems. Do rectification of them.
4. “Reimagining the business” must become the mantra. It is like reengineering. Now branded as reimagining. Understand the services of IoT offers and redesign your business around the power and potential of IoT. Creative effort to use IoT in innovative way is required to see new things before others or understand what others have done through newspaper or digital media news.