DMI looks at the interaction of mobile apps and IoT in the manufacturing space
Once the stuff of science fiction, the “Internet of Things” is now an established reality – and one with tremendous business possibilities. McKinsey & Company estimates the IoT space has a total potential economic impact of anywhere from $3.9 trillion to $11.1 trillion a year by 2025.
The question now facing organizations is, “how do we deliver a scalable IoT solution that meets business needs?” Manufacturers are already spending considerable amounts of money on mobilizing the enterprise, including connecting employees, products, services and machines and vehicles. Ernst & Young provides a deeper dive into what business functions organizations have addressed first:
• Mobile apps for customers – 46.5%.
• Production and distribution operations to track product flow to customers – 44.9%.
• Digital sensors and other devices in business locations such as stores, branches and offices – 25.3%.
• Digital devices (such as digital bracelets) that customers can wear, which the company uses to track customer usage of products and services – 13.5%.
• Digital sensors in products that send data to the company on how those products are performing – 25.5%.
Mobile apps serve as a good initial IoT project because this is where organizations can achieve the fastest results with the smallest investment. Incorporating customized software for endpoints such as sensors and connected meters, and for connecting existing equipment and machines, immediately makes it more complicated. However, mobile applications are usually used in conjunction with standard hardware including NFC chips, beacons and connected equipment that provide information/data to the business. The mobile apps are a window and a data input mechanism for the manufacturing process. This also aligns with the focus of many IT organizations today: improving applications to better fit the business processes.
IoT implementations that get results
The possibilities of incorporating IoT into business are limited only to the imagination. Here’s a quick look at some use cases for manufacturing.
A name-brand baked goods company needed to eliminate paper-based data collection by its retail field team. The company worked with a developer to create an Android tablet application that helped mobilize the business process of capturing in-store product data and equipped the team with real-time store card details, access to promotion and marketing collateral and an interactive product catalogue. Not only did this save time and create front-line efficiency, but it also updated corporate back-end systems automatically.
A worldwide manufacturer of indoor and outdoor environmental cleaning solutions and specialty floor coatings needed a way to consolidate and analyze their cleaning machine telemetry data, as well as make this data more actionable by delivering it to their internal management team, customers and field-based operators in real time. To accomplish this, the manufacturer had a logical architecture designed that allowed for the integration of machine data, SAP ERP data and other sources with minimal architectural impact to the client. The architecture also provided high-speed and performance movement of data from the machines to the reporting layer. This enabled the effective delivery of information that allowed them to retire maintenance-heavy legacy systems that were not scalable.
By combining various inputs (customer insights, technical innovation, local markets and business strategy), one of the world’s largest cement and concrete companies is driving innovation. Through the use of IoT and a responsive Web portal with hybrid applications for iPhone, iPad and Android smartphones, the company is now able to track details about their customers, orders, invoices and deliveries on a daily basis. This covers all aspects of production, warehouse logistics and distribution, which has been key in increasing productivity, levels of customer service and cost savings.
Putting the odds of IoT success in your favor
The above examples are impressive, but that is not to suggest all IoT projects will end in success. Any project has challenges and risks, and when IoT is involved, multiple factors must be considered. How do you succeed with your IoT strategy and projects? To start with, don’t just digitize existing business processes. Instead, think about how you can use IoT and mobile technology to transform your business.
A successful IoT initiative will include:
• Short, iterative projects no longer than five months’ in duration from start to minimum viable product launch.
• Clear objectives, KPIs and measurement of results.
• User involvement throughout the development process.
• Training and education of employees to get everyone involved.
• Implementations supported by lean continuous improvements.
There’s no doubt IoT is changing how organizations do business. In addition to greater productivity and efficiency, IoT projects can create better customer segmentation and service, reduced equipment downtime, increase revenue and so much more. The caveat here is that just as with any other initiative, IoT projects may fail – at first, anyway. Gathering a team that includes a partner with technical expertise and experience can help companies avoid some of the pitfalls beginners might otherwise not notice. Begin with a smaller project that has a shorter timeframe to learn the ins and outs of such an undertaking before attempting a larger goal. Use the elements outlined above to put the odds of success in your favor. And do it soon. In the fast-paced world of digital transformation, the company that hesitates may very well be lost.
Magnus Jern is president of DMI’s Mobile Application Solutions Division. He was previously the founder and CEO of Golden Gekko, acquired by DMI in 2013. Jern has over 10 years of experience in content strategies, online marketing, search, location-based services, app development and mobile marketing for global consumer brands, retailers and carriers across the world.
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