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Driving Growth from the Industrial Internet of Things
“For those companies looking to build a more innovative mousetrap – a new product-service hybrid that will completely revolutionize their company or industry – now is the time to harness the emerging Industrial Internet of Things to identify new growth opportunities and, with the right vision and leadership, turn them into reality.”Paul DaughertyCTOAccenture
What is the Industrial Internet of Things (IIoT)? The Industrial Internet of Things is the incorporation of intelligent industrial products, processes and services that communicate with each other and with people over a global network. Intelligent technologies to fuel innovation across the eco-system
IIoT’s Top-Line Opportunity Optimistic predictions of the value created by the Industrial Internet range as high as $15 trillion of global GDP by 2030. Operational Efficiency Automation, more flexible production techniques and predictive maintenance Top-Line Growth New digital products and services, and generate entirely new sources of revenue
Significant Value will be Realized from IIoT Value Categories Value Levers Value Unconventional Revenues Incremental Revenues Operational Efficiency
Four steps to exploit revenue-generating opportunities
1. Innovate through product-service hybrids Preventive Maintenance Automation Operation Optimization Services Reduce Resource cost NextGen Products/Services Product as a Platform Data Analysis & Recommendations Most Valuable Information Provider Boost Productivity Improve Equipment Performance Increase Customer trust & loyalty
2. Be the VIP – Most Valuable Information Player Sell products, and your customers interact with you only when they have a problem. Sell services, and you gain multiple opportunities to create customer touch points, build trust and become the preferred provider for new services. Increase ability to have context rich interactions within value chains System offers analytics on large real-time data for diagnostic and recommendation Share data with partners for value –added services across the eco-system e.g. carrier, vehicle and payment services Make the consumer aware of their “Internet of Things” and then work with the ecosystem partners to drive next generation customer experiences. Today Future
3. Treat Services as R&D To innovate more quickly, industrial equipment makers will take a page from technology companies: they will treat services as a speedy laboratory for discoveringthe features that their customers want. Products start to sound off. A product once installed a the customer will be the primary feedback to the vendor from maintenance status to request for feature enhancements. Hardware is not that hard after all. R&D intensity is high in industrial sectors where scientists and technologies are needed in electro-mechanical devices. However embedded software can be upgraded in the field with new functionality that allows innovation to be pushed out sooner. Cooperative product development. The common drivers that influence the R&D efforts of makers of products are energy management, safety, sensing and measurement. A new driver will be more about the eco-system of intelligence machines, processes and people in a global network
4. Integrate Digital and Human Labor While the adoption of the Industrial Internet will accelerate and expand the use of digital labor (in the form of automation using intelligent software and robots), greater returns and productivity gains will come from augmentation, which seamlessly blends digital and human labor in task-specific environments Examples
Next Steps on IIoT Journey There are a number of initial steps that companies should be considering now to help them take advantage of the growth potential of the Industrial Internet of Things including: Think boldly about value potential from product-service hybrids. Cultivate tomorrow’s partner ecosystem. Start now to designand develop Industrial Internet platform. Closely study Industrial Internet financials. Prepare marketing/sales/service to promote new digital products and services. Clarify legal rights, obligations and secure access to data generated from machines to deliver new digital services. Think about how to augment workforce with smart machines.
Get the report:www.accenture.com/iiot #IIoT