“While reduced machine or asset downtime and more rapid service response are the top two drivers, according to ARC survey results, IIoT also can improve operating performance, satisfy worker needs, and aid in safety, risk and logistics management. “IIoT includes industrial apps, mobile devices, modeling and simulation, software, workflow, analytics, visualization and cloud computing, but it also will lead to significant changes along the supply chain,” said ARC’s Gorbach… Products and services will merge into a product-service hybrid. “There already is a shift from buying products and services to buying guaranteed results,” said Gorbach, who cited the example of Kaeser Compressors supplying guaranteed air as an alternative to selling a compressor”.
Read the article in Control Design
Nevertheless, selling guaranteed compressed air instead of the actual compressor doesn’t seem to me a particularly imaginative innovation, nor is it IoT driven. Dalkia and Cofely have been doing this for years and so have others. ABB tried to sell “air” instead of products in its Air Handling division 15 years ago. It appears that while we can foresee many things that can be done using IoT based technology, we can’t really yet imagine how offerings will look like or on what terms competition will take place. One thing is for sure -the IoT is a technology that will radically drive down costs for achieving an outcome. How this can be monetized is as yet not clear and I think GE’s Predix platform is the best we have so far.
Categories: IoT, Technology and Digitization