Machine operators are looking for equipment and digital solutions that enable them to improve performance. They are on the hunt for equipment providers who can help them reduce downtime, enhance efficiency, improve product quality – and ultimately improve their margins.
According to McKinsey, remote asset condition monitoring can reduce maintenance costs by 30% and cut machine downtime by 50%. Uptime equals revenue for equipment operators, giving OEMs every incentive to build smarter products that monitor equipment health and catch problems before they arise. Products that enable you to be more proactive and efficient with service calls, fixing problems faster. Products that enhance equipment performance for your customers to enhance the efficiency of their operations and improve output quality.
To survive and thrive in this new era, OEMs must start offering connected products. Smarter equipment that integrates the Internet of Things (IoT) helps build a future in which you deliver a better customer experience. With insights into how your equipment performs, and which features are most important to customers, you can increase the cadence of product development.
The value of connected equipment goes beyond uptime. For equipment makers, the source of value is steadily shifting from hardware to software and services. With intensifying global competition and increasing commodification, margins are eroding quickly. IoT-connected equipment opens the door to offering new revenue-generating services that bring in more, and more consistent, cash flow than a traditional one-time sales model. These services range from remote monitoring and aftermarket sales to new business models such as Equipment-as-a-Service.
Creating an IoT strategy is complex, and executing it is even harder. Building solutions on your own can be challenging, leading many OEMs to look for a trusted advisor that can accelerate the creation of resilient IoT services.
If you don’t take action now, trust that your competitors will— and soon. The benefits are too great to ignore.