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Dr. Jay Bal
International Institute of Product and Service Innovation
Jay.bal@warwick.ac.uk
AMSCI – Advanced Manufacturing
Supply Chain and the Internet of
Manufacturing Things.
How will it change manufacturing?
• Transform How Products are Created
– Manufacturers must plan and design flexible platforms that enable
personalization, value added services, and product enhancements to be
delivered remotely before and after the product is in the market
– Manufacturers must design out the complexity created by combining
processors, sensors, software, digital user interfaces and connectivity,
and deliver a simple user experience
– Manufacturers must incorporate product usage data into R&D processes
and drive new functionality, define specifications, and increase
customer intimacy
• Transform How Products are Serviced
– Manufacturers must plan and deliver remote software and service updates
in real-time, with minimal customer disruption, and at minimal
marginal cost
– Manufacturers must plan and optimize product and service parts management
and inventory control by tracking assets and analyzing real-time
product usage data to predict parts needs
– Manufacturers must plan and optimize field service management
processes by bundling proactive and reactive maintenance and providing
technicians with information in advance to increase first time fix rate
Tweet Post
• Transform Business Models
– Manufacturers must rethink business processes and business models to
maximize returns across the entire useful life of the product, and not just
up to the point-of-sale
– Manufacturers must plan for increased complexity of expanded partner and
supplier ecosystem, and consider the opportunities and threats they create
– Manufacturers must capture and analyze product data to anticipate product
service needs and user desires for additional services and capabilities
Benefits?
RESPONDING TO THE INTERNET OF
THINGS
Manufacturers must begin to transform existing business processes and
fundamentally rethink how they create, operate, and service smart, connected
products in the IoT. For those that get it right, the future represents a
huge opportunity to create product and service advantage:
Companies can begin taking steps now to position themselves for
these changes by using the new technologies to optimize business
processes in which traditional approaches have not brought
satisfactory returns. Energy consumption efficiency and process
optimization are good early targets. Experiments with the emerging
technologies should be conducted in development labs and in
small-scale pilot trials, and established companies can seek
partnerships with innovative technology suppliers creating Internet-
of-Things capabilities for target industries. McKinsey Quarterly
March 2010
Thank You

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AMSCI Internet of Things - Dr Jay Bal

  • 1. Dr. Jay Bal International Institute of Product and Service Innovation Jay.bal@warwick.ac.uk AMSCI – Advanced Manufacturing Supply Chain and the Internet of Manufacturing Things.
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  • 4. How will it change manufacturing?
  • 5. • Transform How Products are Created – Manufacturers must plan and design flexible platforms that enable personalization, value added services, and product enhancements to be delivered remotely before and after the product is in the market – Manufacturers must design out the complexity created by combining processors, sensors, software, digital user interfaces and connectivity, and deliver a simple user experience – Manufacturers must incorporate product usage data into R&D processes and drive new functionality, define specifications, and increase customer intimacy • Transform How Products are Serviced – Manufacturers must plan and deliver remote software and service updates in real-time, with minimal customer disruption, and at minimal marginal cost – Manufacturers must plan and optimize product and service parts management and inventory control by tracking assets and analyzing real-time product usage data to predict parts needs – Manufacturers must plan and optimize field service management processes by bundling proactive and reactive maintenance and providing technicians with information in advance to increase first time fix rate Tweet Post • Transform Business Models – Manufacturers must rethink business processes and business models to maximize returns across the entire useful life of the product, and not just up to the point-of-sale – Manufacturers must plan for increased complexity of expanded partner and supplier ecosystem, and consider the opportunities and threats they create – Manufacturers must capture and analyze product data to anticipate product service needs and user desires for additional services and capabilities
  • 7. RESPONDING TO THE INTERNET OF THINGS Manufacturers must begin to transform existing business processes and fundamentally rethink how they create, operate, and service smart, connected products in the IoT. For those that get it right, the future represents a huge opportunity to create product and service advantage: Companies can begin taking steps now to position themselves for these changes by using the new technologies to optimize business processes in which traditional approaches have not brought satisfactory returns. Energy consumption efficiency and process optimization are good early targets. Experiments with the emerging technologies should be conducted in development labs and in small-scale pilot trials, and established companies can seek partnerships with innovative technology suppliers creating Internet- of-Things capabilities for target industries. McKinsey Quarterly March 2010
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