Smart services and Smart Products Heidelberg, Honeywell & Eaton Corp Case Study

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Case study on How Hiedelberg, Honeywell and Eaton Corp used their Smart products and Smart Services to gain a competitive advantage. What are the business benefits and Disadvantages of smart products and smart services.

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Smart services and Smart Products Heidelberg, Honeywell & Eaton Corp Case Study

  1. 1. Smart Products and Smart Services - Heidelberg, Honeywell & Eaton Vaidehi. R Anne Helena. D Prashanth.C Sasikumar. S Hallin Shano
  2. 2. About Smart Products and Services <ul><li>Embedded Service - Paving the Way for Smart Products </li></ul><ul><li>Smart products do not 'become smart' by throwing more features. </li></ul><ul><li>Rather smart products get smart by using Internet-delivered services. </li></ul><ul><li>Businesses are rushing to get embedded systems into the hands of workers to improve operations. </li></ul><ul><li>Example: Police departments, airlines, shipping services, rental car agencies. </li></ul>Uses of Smart Services <ul><li>Minimize maintenance and repair cost. </li></ul><ul><li>Cost effectiveness. </li></ul><ul><li>User Friendly. </li></ul><ul><li>Time effectiveness. </li></ul><ul><li>Customer and user satisfaction. </li></ul>
  3. 3. Heidelberg <ul><li>High-end Printing Presses for printers and print media producers. </li></ul><ul><li>Smart Product: Ability to monitor its equipments remotely using built in sensors, networking microprocessors and other IT technologies. </li></ul><ul><li>Insight to optimize printing performance. </li></ul><ul><li>Minimize maintenance and repair cost. </li></ul><ul><li>Financial year 2010/2011: Heidelberg presents figures for first six months – significant rise in incoming orders. </li></ul>Honeywell <ul><li>Control & Automation system for Petroleum Refineries </li></ul><ul><li>Represented small part of cost involved in operating and maintaining a refinery. </li></ul><ul><li>Experion Process Knowledge System: A system of operations and information technologies deployed at a customer’s refinery but remotely controlled by Honeywell. </li></ul><ul><li>Fewer false alarms, less anticipated downtime and lower maintenance cost. </li></ul>
  4. 4. Eaton Corp. <ul><li>Began making axles and later diversified into residential circuit breakers </li></ul><ul><li>Home Heartbeat: Monitors the status of various home systems and alerts the homeowner when something is amiss. </li></ul><ul><li>Usage of water sensors, open/closed sensor, power sensor and wireless network. </li></ul><ul><li>Sustainability: At Eaton, sustainability isn’t an autonomous program or initiative. It’s how they do business – and it’s an increasing part of their business success. </li></ul>Honeywell Contd. <ul><li>Enabled Honeywell to increase scope of other services provided to customers. </li></ul><ul><li>Fortune 100 company that invents & manufactures technologies . </li></ul>
  5. 5. Question 1 <ul><li>Why should manufacturing companies build smart products and smart services? </li></ul><ul><li>What Business Benefits can they gain? </li></ul><ul><li>Provide several examples beyond this case. </li></ul>
  6. 6. IMPORTANCE OF COMPANIES TO BUILD SMART PRODUCTS & SERVICES <ul><li>Its not enough for companies to offer valuable services for their products but to provide “smart services.” </li></ul><ul><li>For smart services, usage of IT to build “smart products,” </li></ul><ul><li>Smart products can detect approaching failure and alert users. </li></ul><ul><li>Gives the company opportunity to provide maintenance services and enjoy the resulting benefits. </li></ul>
  7. 7. BUSINESS BENEFITS THE COMPANY CAN GAIN <ul><li>In business, “Smart” means solving problems fast and efficiently. </li></ul><ul><li>Decreases the cost and increases the profit. </li></ul><ul><li>Expansion of customer base in the market. </li></ul><ul><li>The functionality, efficiency, reliability and sustenance of smart product and service will also be the other key components to affect the customer and market. </li></ul><ul><li>The more functions a product has, the higher price will be sold. </li></ul><ul><li>If manufacturing companies can develop smart products or smart services, they can gain those benefits. </li></ul>
  8. 8. Examples Of Smart products <ul><li>Smart Systems for Cars for Safe Mobility and pedestrian safety </li></ul><ul><li>Pedestrian Recognition, Intersection Control, Lane Departure Warning, Stability Control, Detection of Surface and Pavement Conditions, Night Vision, Driver Condition Monitoring, Redundant Systems for Vehicle Control and Emergency Shutdown </li></ul><ul><li>Driver Assistance Smart System </li></ul><ul><li>Autonomous Handling of Routine Driving Conditions, Driver Information on Traffic, Intelligent Speed Adaptation, Sensing of Driver’s Intentions; Intelligent Transport Systems </li></ul>
  9. 9. Example of a smart service: <ul><li>Smart Field Communicator (SFC) Model </li></ul><ul><li>A battery-powered device </li></ul><ul><li>Secure 2 way communications between Honeywell Smart Transmitters and the user over the existing signal lines. </li></ul><ul><li>Useful for simplifying maintenance by providing access to field devices without a trip to the field. </li></ul><ul><li>When the SFC is connected - transmitter signal lines at an accessible location anywhere from the control room to the transmitter, the operator can send and receive data. </li></ul><ul><li>a weather-proof carrying case, a Ni-Cd rechargeable battery pack and a battery charger. </li></ul>
  10. 10. <ul><li>What information Technologies are used by the companies in this case to build smart products and services? </li></ul><ul><li>What other IT components might be used and their Capabilities? </li></ul>Question 2
  11. 11. Information Tech used by the companies <ul><li>HEIDELBERG (Printing Company) </li></ul><ul><li>Smart printing services comprising of built in sensors, networking microprocessors and internet. </li></ul><ul><li>HONEYWELL (Petroleum Refinery) </li></ul><ul><li>Experion process knowledge system comprising of control and automation systems, remote network technologies and knowledge system. </li></ul><ul><li>EATON CORP (Electrical Appliances) </li></ul><ul><li>Home heart beat Systems comprising of water sensors, open/closed sensors, power sensors, wireless communication system and a key fob device(used by customer to communicate with base station) </li></ul>
  12. 12. Other IT components that might be used <ul><li>Operational level systems - Machine control, order tracking, material movement control, Plant scheduling etc. </li></ul><ul><li>Knowledge level systems - Engineering workstations, graphic workstations, document imaging and process knowledge systems. </li></ul><ul><li>Management level systems – sales region analysis system, sales management systems, production scheduling systems, inventory usage and control systems etc. </li></ul><ul><li>Strategic level systems – 5 year sales trend forecasting systems, 5 year operation planning systems, Personnel planning and job rotation systems etc. </li></ul>
  13. 13. <ul><li>What are some limitations of a smart products and services startegy? </li></ul><ul><li>Give examples of challenges that a business might encounter and how to overcome them? </li></ul>Question 3
  14. 14. Limitations of Smart products and Smart Systems <ul><li>Infrastructure cost incurred for initial installation at customer end. </li></ul><ul><li>Focus on Elite customers. </li></ul><ul><li>Embedded Technology – reliability issues. </li></ul><ul><li>Usage of network – internet, mobile technology and other communication technologies. </li></ul><ul><li>Reliability of sensors and microprocessors. </li></ul><ul><li>Not feasible for a huge customer base. </li></ul>
  15. 15. Business Challenges Faced by Companies Manufacturing Smart products and services. <ul><li>Marketing challenges for smart products. </li></ul><ul><li>Peoples perspective towards smart products and services. </li></ul><ul><li>Price of the smart products and services. </li></ul><ul><li>Customization for diverse customer base. </li></ul><ul><li>Lack of chances for mass production. </li></ul><ul><li>Market penetration. </li></ul><ul><li>Rapid changes in technology. </li></ul><ul><li>Short comings of the current communication and networks used by the the smart products company. </li></ul>
  16. 16. Methods to overcome Business Challenges <ul><li>Usage of Appropriate technology for development of smart products and services. </li></ul><ul><li>Understanding the needs and requirement of consumer base and expansion in consumer market. </li></ul><ul><li>Integrating simplicity of operation and functionality. </li></ul><ul><li>Adaptation to changing IT and IS and incorporating the same in the products and services. </li></ul><ul><li>Usage of quality parts and components in smart products and services. </li></ul>
  17. 17. Thank You

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