When McKinsey Global Institute estimates that the potential impact of the Internet of Things in 2025 will range from $2.7 to 6.2 trillion annually, attention must be paid. At the same time, the manufacturing industry will be the number one industry sector by share or global economic value-add. It’s a great time to be in manufacturing, and companies who are able to identify the opportunities and quickly bring to market solutions will be leaders in their field for decades to come.
In our latest webinar, Building the Business Case for Remote Service, Jim Sweeney, VP of Solutions Management at PTC, outlines how manufacturers can evaluate the benefits of IoT solutions, and how Remote Service capabilities can provide a tremendous value to OEMs and their customers.
Take a look around you as you’re reading this. You’re likely surrounded by connected devices – a thermostat you can program from your phone, lights you can dim with an app, a smart watch – and these devices are changing the way you interact with the world around you. As connected devices are changing your personal experience, they are also changing the business experience.
Industrial IoT is changing service approaches today, and tomorrow. Being able to remotely access, diagnose, and service equipment, relay performance data directly to your field service organization, and predict failures for improved uptime are all potential benefits of IoT capabilities.
Manufacturers looking to connect their assets do so for a variety of reasons, chiefly to reduce cost, optimize asset utilization, and improve worker productivity. But, with increasing competitive market pressures, manufacturers are looking to create new business models that will add incremental revenue.
Service professionals are being asked to increase profitability, which is being impeded by reactive service models that lead to high-cost on-site service calls. At the same time, customers are demanding enhanced services, and contracts that are based on outcomes, such as power by the hour. To meet these challenges, deploying a remote service solution can reduce costs and grow organic revenue.
When building the business case for a remote service solution, consider some of the following metrics as appropriate for your industry:
To build out the framework of potential savings, start with one variable or metric. For example, on-site visits made by field technicians. Assume that 100 field technicians make two on-site calls per week, at a cost of $1,000 per service trip. If even 15% of service trips can be resolved remotely, the savings would amount to $1,500,000 in a single year. Beyond the immediate cost savings, there is also a tremendous value to the customer, who doesn’t need to wait or be present for a technician visit, and whose issue can be resolved quickly and efficiently.
Of course, there are costs to consider when implementing any IoT solution in your business. Some manufacturers choose to build a custom solution in-house. This requires both development skills in-house, ability to support the solution over time, and agility to adapt to technological changes such as platforms and programming languages. A commercial IoT solution can meet many use cases and technical requirements, but there are subscription or implementation costs that will vary, depending on whether the solution is on premise or cloud-based, number of users, etc.
Watch the entire webinar here, including questions from attendees in the manufacturing space.
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