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HOW SMART CONNECTED PRODUCTS ARE TRANSFORMING COMPANIES (Transforming the…
HOW SMART CONNECTED PRODUCTS ARE TRANSFORMING COMPANIES
The New Product Capabilities
Physical components (such as mechani- cal and electrical parts)
Smart components (sensors, microprocessors, data storage, controls, software, an embedded operating system, and a digital user inter- face)
Connectivity components (ports, antennae, protocols, and networks that enable communication between the product and the product cloud, which runs on remote servers and contains the product’s external operating system).
Reshaping the
Manufacturing Company
The new capabilities of smart, connected products alter every activity in this value chain. At the core of what is reshaping the value chain is data
THE NEW DATA RESOURCE.
DATA ANALYTICS.
Transforming the Value Chain
PRODUCT DEVELOPMENT.
Low-cost variability.
New user interfaces and augmented reality.
Ongoing quality management
Evergreen design
Connected service
Support for new business models.
System interoperability
MANUFACTURING.
Smart factories
Simplified components.
Reconfigured assembly processes
Continuous product operations
LOGISTICS
involve the movement of production inputs and outputs and the delivery of products.
MARKETING AND SALES.
New ways to segment and customize
New customer relationships.
New business models.
A focus on systems, not discrete products.
AFTER-SALE SERVICE
Remote service.
Preventive service.
SECURITY.
HUMAN RESOURCES.
New expertise.
New cultures
New compensation models
Implications for
Organizational Structure
COLLABORATION BETWEEN IT AND R&D.
A UNIFIED DATA ORGANIZATION.
DEV-OPS.
CUSTOMER SUCCESS MANAGEMENT
SHARED RESPONSIBILITY FOR SECURITY
Making the Transition
CENTER OF EXCELLENCE.
CROSS-BUSINESS-UNIT STEERING COMMITTEE
The Broader Implications
STAND-ALONE BUSINESS UNIT.