How the smart corporation is implementing the Internet of Things.

1. MANUFACTURING
PRODUCT DEVELOPMENT
FINANCE
POINT OF SALE
INFORMATION TECHNOLOGY
MARKETING
Plant and Asset Monitoring
In-factory sensors that measure and communicate (in real time)
conditions of the plant reduce mistakes and improve uptime. Ex: GM uses
sensor data to measure humidity and determine when it’s too humid to
paint an automobile. Sensors connected to energy and surveillance
systems are used to reduce costs and increase security.
Smart Data Center
Has open source distributed data processing frameworks and cloud based
technologies for cost-effective storage and scalability.
The cloud allows the Smart Corp to leverage on demand processing power
and stream processing applications to help enable the real time analysis.
Security and Privacy
“Data democratization” magnifies data security and privacy challenges. In
2013 botnets were used to send 750k malicious emails from connected
household appliances. 50% of companies surveyed said they were not
ready to secure an ecosystem of connected devices.
Technology Partnerships
Close to 60% of organizations are using partnerships in their IoT solution.
10% use acquisitions or develop APIs to build out their IoT. Honeywell
uses APIs that allow developers, retailers and product integrators to
create custom applications used with their Wi-Fi thermostats.
Predictive vs. Preventative Maintenance
Sensors on factory machines enable Manufacturing to practice predictive
maintenance. Small variations are noted immediately and adjustments can
be made. In 2012 GE launched Predictivity, a line of IoT services to help
connect equipment data to mobile devices and predict maintenance needs.
Real Time Analysis
Manufacturing can dramatically improve response time with data at the
source. Real time collaboration increases the production speed. Lido
Stone Works connected its design center in Italy with the fabrication shop
in New York. Now “one person can complete inventory in a day. It used to
take 4 people a week,” says owner Elliot Mazzocca. Revenue increased
70%, productivity is up by 30% and travel costs were cut by $500k.
Use Smart
Manufacturing 13%
Efficiency
Rating 82%
Fewer Product
Defects 49%
Customer
Satisfaction 45%
Investing in
enhanced IT security 71%
Investing
in big data 64%
Investing in
Internet of Things 49%
Inventory Efficiency
Stores are connected directly with back-end analytics and warehouse
systems. Scanners give real-time information to manage inventory. Stores
can become virtual showrooms. Or be virtual. Tesco Homeplus, a
supermarket chain in South Korea, set up a virtual store in a subway station.
Customers used their phones and QR codes to buy groceries, which were
delivered to their homes that same day.
Store Analytics
The smart retailer is able to tap into technologies of IoT, wifi, and GPS to
see much about shopper behavior. The robust analytics end up looking like
traditional web metrics. The smart store can perform A/B testing, make
custom offers, and change its window display based on changes in
these analytics.
Smart Associates
Customers will leave a store empty handed if they don’t get the help they
need. The smart store has sales associates equipped with mobile devices
that can help find products – both in-store and online – as well as finish out
transactions and take payments from anywhere in the store.
New Product Services
IoT provides an opportunity to create new products and services. Ex: Amazon’s
smart fulfillment process allows them to offer new services like same-day and
Sunday delivery for some items. This service gives businesses the ability to add
or change products remotely and real-time. Imagine a fast-food-chain sending
an automated cooking time update for a new menu item instead of sending out an
engineer to each store.
Connectivity
Companies must consider how new products will connect to the IoT based on
the particular device, how it will be used, where it will be used and its data
bandwidth requirements. They must also decide what part of their products
can or should be re-programmable by tech savvy and layman users alike.
Internet–Like Usability
Web-like usability now applies to the IoT connected products. Smart
thermostat leader Nest is continually monitoring customer usage
behavior and feedback; regularly tweaking the balance of what the
product could do and what it should do.
In the B2B space, field technicians can remotely
take payments and make immediate up-sells on
location with the customer. They can also better
service their products, creating more customer
satisfaction.
“Access to networks of sensors and remotely-controlled
objects by enemies of the United States, criminals and
mischief makers.” – US National Intelligence Council
90%
OF CUSTOMERS
WILL LEAVE A
STORE
EMPTY-HANDED
IF THEY DON’T GET
THE HELP THEY
NEED
11%
OF STARBUCK’S
TRANSACTIONS
ARE MADE
THROUGH THEIR
APP ON
CUSTOMER’S
MOBILE PHONES
10%
REDUCED COSTS
THROUGH IMPROVED
VEHICLE USAGE AND
DRIVING QUALITY
78%
SAW CYBERSECURITY AS
THE BIGGEST PRIORITY
88.5%
EXPECT THIS TO
INCREASE OVER TIME
86%
OF THEIR
CUSTOMERS HAVE
TAKEN EFFORTS TO
MASK THEIR
DIGITAL PRESENCE
40%
OF COMPANIES USE
CUSTOMER
INFORMATION
GATHERED ONLINE
FOR TARGETING
$140
BILLION
WILL BE INVESTED
IN IOT MANUFACTURING
OVER THE NEXT 5 YEARS
Opex Flexibility
Finance can now lease on an operating basis what they previously had to
buy, reducing costs. Daimler Automotive used IOT to create FleetBoard,
which allows a per usage measurement of its fleet trucks. Sensors in the
vehicles inform how the truck is driven, and insurance premiums can be
adjusted accordingly. Through FleetBoard, customers have reduced costs
10% through improved vehicle usage and driving quality.
Cost Control
Thanks to IoT implementations and data analytics, Finance has much more
visibility into the profit and loss. Microsoft used IoT to cut costs at its own
facility according to Quentin Clark, the head of the data platform group.
“By Implementing Internet of Things control systems and big data analytics
at our headquarters campus we were able to spot aberrations in our energy
usage, such as a garage that had air conditioning.”
Accurate Reporting
A big concern of the CFO is reliable and accurate reporting. Linking data
systems straight from the source to headquarters through IoT reduces that
risk. Finance relies less on individual excel spreadsheets, subject to human
error and potential problems. This means business leaders have a clear
and accurate view of key financial performance metrics.
HOW THE SMART CORPORATION IS
IMPLEMENTING THE INTERNET OF THINGS
The IoT has been described as “game changing,” a “disruptive
innovation,” and “the most exciting thing since the
Industrial Revolution.”
Hyperbole aside, this will impact every department of your
business. Take a look at how IoT is used in the Smart Corp today.
BY 2020…
THERE WILL BE 26 BILLION
CONNECTED DEVICES
40%
OF ALL DATA WILL BE
M2M GENERATED
30%
OF OPERATING COSTS
FOR BUSINESS
COMES FROM ENERGY
EXPENSES
$
Product is the Media
With smart products, the product can become the media. Diageo Spirits ran
a Father’s Day promotion where consumers used smart phones to scan the
QR codes on bottles of whiskey which generated a customizable video
greeting for Dad.
Custom Targeting
A smart product collects data about how, where and when it is used. With
this data and analytics tools layered on top of that, marketers can make
offers based not just on demographics but by individual behavior and needs.
Your smart car would deliver a message that you needed an oil change
along with the wait time of the closest garage, and a 20% off coupon.
Increased Effectiveness
The access to data and to the customer provides real benefits to marketers.
Companies can reach their customers in previously inaccessible places.
The marketing can be incorporated into the social flow of everyday life. This
is presumably less interruptive, more natural and thus more effective.
Product development is making products that
are smart and connected, the product
becoming more of a service than an object.
IOT
MATURITY OF
IOT SOLUTIONS
BY INDUSTRY
$2.7-$6.2 trillion
PREDICTED IMPACT OF IOT BY 2025
42%
OF COMPANIES
DO NOT
PROVIDE IOT
SOLUTIONS
27%
OFFER REMOTE
OPERABILITY
SUPPORT