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