Hardware As A Service is the best user-case for Industrial IOT applicationMay 30, 2018 8:00:00 PM
Industrial IOT is the IOT applications/products for Business/Industry . Before we talk about why HAAS is the best user-case for I-IOT, we need to understand what is the best value the company can create for their customers. In other words, we need to understand what’s most valuable for their customers. As a human being, we have answers to many questions in life that include our basic needs like food, clothes, houses, traffics, education, health, friendship, love, happiness, etc. Now we have conveniences. Like when you can pay the taxi fee via AliPay where you do not need cash anymore. Whether you can see your home or your family anywhere anytime only depends on if you were connected or not. The question is what’s exactly the value you are enjoying in cases? What’s matters for you? There are some principles will never change. It’s your time and focus; body and thinking. That’s it. That’s all. So, all the conveniences are working to save your time, your focus, matters of your body and helping you think in right level.
In industrial IOT businesses, the applications will make the business or services to satisfy their customers time, focus, body, and mind. This too can help us, as human beings, more easily think about what’s Industrial IOT capability and how it’ll be applied to the real business.
As an example, GE is working on helping their customers use their engines much more easily and save time in the process; Another example, as well. is MoBike. Scan the code, ride the bike, lock the bike, and then leave. These are both Hardware-As-A-Service use-cases (or business models). This has saved a lot of time for everyone in the business cycle.
Additionally, the HAAS has helped to lower the front-cost and connect with the end-value (less pain physically or emotionally) while allowing the customers pay for the value they enjoyed. The upside is that they do not pay a lot of money upfront before they can even try it. The lower frontend cost also helped engage more and more applications as well, since business can matrix their ROI then. Looking at a study from PwC/MAPI, we also can see following data:
You can found there are nearly one in three manufacturers is deploying products(hardware)-as-a-service IOT business model.
And, the market is huge as well, even when only considering manufacturing IOT applications:
There are many application use-cases that were published by McKinsey in their report in 2015. While it's a little bit old, it is worth reading through and may will helpful for structuring the user-cases for your innovation.
Third, HAAS forces the customer and service/products providers to focus on the same value (the customers values). If the end-user is happy, then the business win new business or make more profits. The HAAS provider also shares the profit from the business as well. This has created a very effective cooperation structure in the ecosystem and has accelerated the innovation from idea into real business success much much faster than before. Before = physical world, Now = Digital world
Finally, HAAS helps everyone think more deeply than before. With the right data-collected from the physical world and optimized with the proper data strategy, the team can keep optimizing the questions they are asking while optimizing their workflow. This acts as a base for reforming the foundation base of the business.
This will create a new structure for the entire world. We will have a much better physical world with digital world everywhere within our reach. The IOT generation is already coming and industrial IOT is the bridge we are building which will connect physical to digital.
The future of industrial IOT is decentralized. This adds an entire different dimension to the discussion. We'll talk about these topics in a follow-on post.