I’ve always seen technology as an enabler. The question is not whether a technology works. The question is whether it can deliver the capabilities to support your business models and processes.
Given that the Industrial Internet of Things can enable so much, I understand why there’s so much fanfare around it. However, you can’t build a service business on hype.
A couple of weeks ago, at LiveWorx, I attended a session hosted by Steve Postma, an enterprise architect at Sysmex, who spoke about his company’s use of the IoT to deliver some pretty interesting services. One of his opening remarks was that only 26% of IoT projects succeed. Why?
Before you even think about the IIoT, you need to ask yourself three questions:
Going back to square one will reveal which capabilities will help you succeed as a services organization. Keep in mind that you can't address these considerations based on today’s environment. To be successful, you must answer these questions with the future in mind.
Let’s look at Trane as an example. The company answered the questions above and came up with the following answers:
In 2014, Dane Taival, former VP of Building Services and Customer Care, mentioned that for every dollar in equipment sales the company earned, Trane created the opportunity to sell eight dollars’ worth of services.
However, Taival realized customers weren’t going to pay top dollar for break-fix services. Trane needed to figure out a way to not only prevent equipment from failing, but also help their customers get as much value from their HVAC equipment as possible. That’s when they looked to technology.
Remote monitoring could enable any number of outcome-driven services, an obvious one being prescriptive services. Here are some not-so-obvious models a service leader could build off this capability:
My main point is this: The reason why companies are exploring the IIoT, blockchain, machine learning, and other technologies is because they present real business opportunities. When there’s a lot of fireworks around a technology, it can be easy for even the shrewdest service professionals to lose sight of that.
How do your service capabilities measure up against your competition? Take our free, online assessment to learn where you stand in the market: