THE SHIFT TOWARDS 'Managed Products'
Manufacturers of larger goods-generators, elevators, air-conditioning units, jet engines, and medical equipment-frequently already sell maintenance contracts along with equipment. These contracts are often lucrative, but they create problems for both parties.
They require regular inspection and maintenance visits, and customers still experience downtime and an emergency call-out if there's a problem in between visits. Manufacturers are increasingly moving towards "servitization", where instead of selling products they contract to deliver outcomes.
IoT Revolutionizing Manufacturing Industry
With IoT, manufacturers can remotely monitor the condition of equipment and look for indicators of imminent failure - for example vibration, temperature, or pressure outside normal limits. This means that the manufacturer can make fewer visits, reducing costs and freeing up employees. For the customer it means less disruption, increased uptime, and ultimately higher satisfaction.