Servitization: Using IoT (Internet of Things) and data to sell services that complement a product portfolio is just smart business. Industry 4.0 is less about technology, and more about business strategies and business models. Today’s Challenge is creating the ecosystem. Assets tracking and supply chains.1 Servitization: A New Revenue Stream
Peggy talks about how servitization can open the door to new revenue streams. She explains that if you are in business today, you are in it to make money. Using IoT (Internet of Things) and data to sell services that complement a product portfolio is just smart business. She talks about how to go on the journey toward servitization—and make it a profitable one. She points to research that shows that companies that are further along in their servitization journey also report higher profitability.
Peggy and Duane Wald, VP and managing director, EMEA and APAC, MultiTech, chat about the Internet of Things, and he says in the context of Industry 4.0, it is less about technology, and more about business strategies and business models. He adds that people understand the opportunity, but there is a lot of effort to use technology to solve problems. Creating the ecosystem and business model is what the industry is challenged with today—and that is where we are at in the evolution of this now, he explains. The technology is maturing and that is the key today, he says, as technology is making new applications possible that weren’t possible five years ago.
Peggy and Joshua Peschel, assistant professor, agriculture and biosystems engineering, Iowa State University, says if you look at the tracking different assets and understanding their supply chain, having access to detailed information is not something companies were able to have prior to now. He gives an example of taxi tracking in large cities. If you could know where taxis were located, you could know about illness spreading, because you know how many times taxis or Ubers went to hospitals. He says there is going to be a big squeeze on the supply chain, no matter what part of it you are in.