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Driving Growth from the Industrial Internet of Things
Driving Growth from the Industrial Internet of Things
2Copyright © 2014 Accenture. All rights reserved.
“For those companies looking to build a more innovative mousetrap – a new product-service hybrid that will completely revolutionize their company or industry – now is the time to harness the emerging Industrial Internet of Things to identify new growth opportunities and, with the right vision and leadership, turn them into reality.”
Paul DaughertyCTOAccenture
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What is the Industrial Internet of Things (IIoT)?
The Industrial Internet of Things is the incorporation of intelligent industrial products, processes and services that communicate with each other and with people over a global network.
Intelligent technologies to fuel innovation across the eco-system
Data from Wearable devices
Digital Workforce
Management
Analytics from mobile devices
Inputs
Outputs
The Industrial Internet of Things Platform
M2M comm. on-board devices
IntelligentPlants
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IIoT’s Top-Line Opportunity
Optimistic predictions of the value created by the Industrial Internet range as high as $15 trillion of global GDP by 2030.
Operational EfficiencyAutomation, more flexible production techniques and predictive maintenance
Top-Line GrowthNew digital products and services, and generate entirely new sources of revenue
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Significant Value will be Realized from IIoT
Value Categories Value Levers
Value
Unconventional Revenues
NextGen Products/Services
Product as a Platform
Data Analysis & Recommendations
Most Valuable Information Provider
Boost Productivity
Improve Equipment Performance
Increase Customer trust & loyalty
Incremental Revenues
Operational Efficiency
Preventive Maintenance
Automation
Operation Optimization Services
Reduce Resource cost
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Four steps to exploit revenue-generating opportunities
1. Innovate through Product-Service Hybrids
2. Become the most valuable information player
3. Treat services as R&D
4. Create an IIoT workforce
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Asset Owners / OperatorsProduct Makers
1. Innovate through product-service hybrids
Preventive Maintenance
Automation
Operation Optimization Services
Reduce Resource cost
NextGen Products/Services
Product as a Platform
Data Analysis & Recommendations
Most Valuable Information Provider
Boost Productivity
Improve Equipment Performance
Increase Customer trust & loyalty
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2. Be the VIP – Most Valuable Information PlayerSell products, and your customers interact with you only when they have a problem.
Sell services, and you gain multiple opportunities to create customer touch points, build trust and become the preferred provider for new services.
• Increase ability to have context rich interactions within value chains
• System offers analytics on large real-time data for diagnostic and recommendation
• Share data with partners for value –added services across the eco-system e.g. carrier, vehicle and payment services
Make the consumer aware of their “Internet of Things” and then work with the ecosystem partners to drive next generation customer experiences.
Consumer
Today
Future
M2M on the move
M2M in the home Loosely connected devices
Networked Enterprise M2Ms
Cross selling & new value-add services
New Consumer M2M
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3. Treat Services as R&DTo innovate more quickly, industrial equipment makers will take a page from technology companies: they will treat services as a speedy laboratory for discoveringthe features that their customers want.
Products start to sound off. A product once installed a the customer will be the primary feedback to the vendor from maintenance status to request for feature enhancements.
Hardware is not that hard after all. R&D intensity is high in industrial sectors where scientists and technologies are needed in electro-mechanical devices. However embedded software can be upgraded in the field with new functionality that allows innovation to be pushed out sooner.
Cooperative product development. The common drivers that influence the R&D efforts of makers of products are energy management, safety, sensing and measurement. A new driver will be more about the eco-system of intelligence machines, processes and people in a global network
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4. Integrate Digital and Human LaborWhile the adoption of the Industrial Internet will accelerate and expand the use of digital labor (in the form of automation using intelligent software and robots), greater returns and productivity gains will come from augmentation, which seamlessly blends digital and human labor in task-specific environments
Examples
Remote operation of mining equipment from the Command Center
Adaptive robots working side-by-side with people on the factory floor
Self-driving cars create an entirely different kind of commute and driving experience
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Next Steps on IIoT Journey
There are a number of initial steps that companies should be considering now to help them take advantage of the growth potential of the Industrial Internet of Things including:
Think boldly about value potential from product-service hybrids.
Cultivate tomorrow’s partner ecosystem.
Start now to designand develop Industrial Internet platform.
Closely study Industrial Internet financials.
Prepare marketing/sales/service to promote new digital products and services.
Clarify legal rights, obligations and secure access to data generated from machines to deliver new digital services.
Think about how to augment workforce with smart machines.
12Copyright © 2014 Accenture. All rights reserved.
Get the report:www.accenture.com/iiot
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