Digital transformation

Data Driven Strategy

The Internet of Things and the ability to monitor products in real-time using concepts such as digital twinning are opening up a host of new opportunities to companies. These new chances are driven by the enormous volumes of data businesses now have at their disposal. As the latest products continually send data back to the manufacturer throughout their service life, their creators can use big data analytics and AI to tap into an unprecedented wealth of information: They can tell their customers how to operate a product within perfectly configured parameters, or when best to perform maintenance to maximize a machine’s service life. This ability adds a new dimension to the data-holder’s ability to differentiate itself from its competitors through services. Early adopters firmly believe that processing data generated by machines, for example, to render it comprehensible and useful, is a worthwhile process that will pay for itself in the short or long-term.

Instead of the product itself, businesses are now able to sell its output: The printed word rather than the printer, or the laundry rather than the washing machine. In the case of consumer goods, this shift is redefining how manufacturers think about sustainability: Manufacturers can use high-quality materials rather than cheaper alternatives, and they can then reuse these materials when the product or appliance is returned at the end of its service life as part of a closed-loop system. Data-driven products and services bring companies closer to their end customers, and give them more access to more information on their customers, than ever before – data that can often be gathered directly via IoT platforms, rather than via the ‘middle men’ of distributors and dealers. However, when developing new business concepts, it is imperative that companies take steps to lift knowledge of specific domains out of specialist departments so that it can be utilized across the business..