The Internet of Things is a transformative business opportunity for manufacturers. Yet, many companies struggle with how to move forward toward adopting IoT and connected products. Often it is simply a matter of not knowing where to begin, which is why an effective roadmap to help you is critical.
IDC Manufacturing Insights Research Manager, Heather Ashton, recommends an IoT roadmap that includes two important steps: 1) Determine Use Case, and 2) Prove ROI.
“Because IoT technology is still emerging and can enable thousands of use cases, it’s critical to define and prioritize the use case that will create the most value to the organization, and then balance that with the risk and cost of the initial investment,” says Ashton in a recent video. She provides some questions to help you get started:
- How can connected product data transform business processes?
- What’s the use case and value proposition for the business or customer?
- What are the inherent risks and associated costs with this use case?
Keep in mind that as you evaluate the value and costs of a use case, it’s important to establish metrics so that you can later objectively validate the ROI, advises Ashton. Project leaders should identify and define metrics up front for each IoT use case.
One example is for service. If you’re considering a remote service use case to reduce service costs, establish baselines and calculate changes for existing service metrics like mean time to repair and first time fix rate.
In addition to establishing metrics, “Also, ensure customer and business stakeholders understand the value proposition and proactively manage and communicate the value they create,” concludes Ashton.
For more insights from Heather Ashton, watch the full video series by IDC: Reshaping the Manufacturing and Operations Landscape.
- How IoT Transforms Discrete and Process Manufacturing
- Top Drivers for IoT in Discrete Manufacturing
- The Rise of IoT in Process Manufacturing
- Top Five IoT Challenges for Manufacturers