Insights from Tobias Söderlund, IoT Business Architect. Tobias shares some examples how IoT gives you the possibility to increase internal effectiveness which often has a significant impact on the overall business case.
IoT enables unparalleled opportunities to create a long-lasting relationship with your customers and tailor your offering over time. New ways of monetization are enabled through outcome based pricing models, where you deliver what the customer really wants instead of a product. This could be climate comfort or one of the oldest examples, the Rolls Royce ‘Power by the Hour®’ where customers pay a fee for the amount of flying time for an engine.
In the innovation process the customer is in focus; however, by experience I find that many miss the opportunity to treat your internal organization as different customer segments (e.g. Supply, R&D and Marketing). Instead, these insights from within the company often come after deployment and impact the cost structure rather than the revenue stream, increases the product quality or optimizes the asset utilization.
Sure, many launch IoT solutions solely to improve productivity, reducing cost or automate processes, but the scope is then often too narrow and do not take into consideration other corporate functions.
Four examples of company internal benefits of IoT
Supply chain improvements
- Decrease warehouse needs and deliver consumables and spare parts just in time.
- Lifecycle information.
- Asset tracking in the logistic flow.
- Transport environment sensing (temperature, humidity, physical stress).
Accelerate product innovation
- Real-time and predictive data to enhance product development.
- Data to measure and feedback production quality.
- Develop what matters for customers.
Increase sales agility
- Targeted sales activities based on customer usage and meta data.
- Streamlined upselling.
- Comprehensive data gathering from campaigns.
- Real-time and predictive issue handling.
- Issue statistics.
- Over the air updates to remedy issues.
Some of these internal improvements can of course be captured by looking solely at customer needs, but seeing the corporate functions as potential customers increases the chances of finding highly valuable process improvements which not only improves the business case but also help increase awareness and alignment in the organization when entering into the IoT space.