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A horrifying little detail for manufacturing companies is that 70% of their lot found on the Fortune 1000 list in 2008, have now vanished off from there. This is suffice to say that the 30% who still find themselves on the list have done a good job. These companies have adopted to modern business trends by investing on technology especially aspects such as the Internet-of-Things (IoT) and Artificial Intelligence (AI). Rolls-Royce is a good example of a legacy company surviving, thanks to their use of predictive maintenance suites. Such capabilities are transforming these companies towards “servitization” This is the model where operational silos of maintenance and service have become AI-driven high-margin businesses. The use of predictive business analytics has led to much reduced downtime caused by machine failure, and as a result lowered repair cost. IoT sensors have also been aligned with devices. Traditional business models haven’t yet been upended to as great an extent as often believed, due to the slow adoption rates, but this will rise. That is why large-scale data warehousing is taking place, so that trends can be understood before they disrupt the players by surprise. It does not matter whether the AI expert is in-house or externally sourced. Customers now need to be convinced towards buying into a service rather than a product.

Source:https://www.forbes.com/sites/insights-intelai/2018/09/21/the-iot-powered-rethink-for-manufacturing-from-sales-to-servitization/

Uploaded date:27 September 2018

Among all subscription-based businesses it is ones that front IoT (Internet-of-Things) that are growing the fastest at 25% against an industry average of 21%. This data has been provided by Zuoro, which itself follows a subscription-based model. It is a, SaaS (Software as a Service). Zuoro publishes its Subscription Economy Index (SEI) which tracks enormous amount of data to provide business intelligence on the entire model. Such companies are growing five times faster than those named on the S&P 500 list. For B2C companies working with this model, the key metric to gauge is net user growth. McKinsey has provided an interesting conundrum. It says that a minimum 20% yearly growth is needed under this fast-growing model, else there are strong chances of failure up to 92%.

Source:https://internetofbusiness.com/subscription-iot-businesses-grow-revenues-by-25-percent-says-zuora/

Uploaded Date:27 September 2018

A study was conducted recently by management consulting behemoth- Bain and Company – to understand the key points which are keeping enterprise customers away from adopting IoT (Internet-of-Things) technology. This is the third year of this study and like them last time as well, cybersecurity issues figure right on top. This is followed by the IT integration with larger issues and an unclear business footprint, exactly like last year. Data portability and vendor risk are newer issues that have come up the rankings of concerns, though not yet among the top three. Legal issues are no longer so severe thanks to proactive steps taken across the board. The business conundrum, especially on returns will need to be solved pretty soon, before any enterprise customer decides large-scale IoT adoption. Remote monitoring will increasingly need to be part of any suite as it helps in better integration with standalone devices.

Source:https://www.bain.com/insights/whats-keeping-enterprise-customers-from-adopting-IoT-technology-snap-chart/

Uploaded Date:26 September 2018

The Internet of Things (IoT) provides one of the strongest chances for business growth for companies over the next few years. This is specifically true for B2B players as the market grows. The market size is expected to more than double by 2021 from the present figure of US$ 235 billion to US$ 520 billion according to marketing research firm Gartner. While the adoption rate has admittedly increased, the mood has dampened somewhat thanks to overtly bullish predictions previously made. Some CSPs (Cloud Service Providers) such as AWS (Amazon Web Services) and Microsoft Azure have emerged as influential vendors. These CSPs are able to provide more holistic solutions due to their deep expertise in business analytics. Bain and Company has conducted a study to understand the key challenges in IoT’s mass adoption by companies and cyber security has emerged as top priority. For all IoT vendors, three themes have emerged that they must follow to get their business strategy right. First of all, they must focus on getting a few industries right before a wider onslaught. The solutions developed must be end-to-end as no company would want to work with multiple partners. The barriers to adoption need be slowly removed to ensure increasing scaling up.

Source:https://www.bain.com/insights/unlocking-opportunities-in-the-internet-of-things/

Uploaded Date:13 September 2018

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