The internet of things (IoT) is a business and technology revolution. It not only enables the connection and communication with ‘things’ but allows us to manage them.

It allows our organizations to do preventative and predictive maintenance on ‘things’, do guided service on ‘things’, and create digital twins of ‘things’. It enables us to improve operational efficiency, significantly reduce downtime, and to develop new revenue streams.

What makes up the ‘Internet’ in IoT?

The internet is composed of two separate communities; the internet of people and the internet of things or IoT.

The Internet of People

First, let’s break down what we mean by ‘the internet of people.’

The internet of people has grown organically over the past 20 years and has evolved into becoming an interconnected network of billions of people. That’s right, billions. Its primary purpose is to connect people, collate information, and enable people-to-people interaction.

The internet of people allows people to connect by becoming a clearinghouse of information. People post information available to other people, generating a great deal of information that is being pumped into the cloud.

The Internet of Things – IoT

The internet of things has been growing organically for the past 10 years and has the potential to become much larger than the internet of people. Its primary purpose is to connect machines, people, and data.

The IoT also enables people-to-machine and machine-to-machine interactions. In the Internet of Things, things are pumping data into the cloud so products can be monitored, controlled, optimized, and automated. During this process, information and data are streaming into the cloud from both people and things.

Combining the internet of people and things

This leads us to the internet. As mentioned earlier, the internet is the combination of internets of people and things into one integrated network. (Of course, they never were really separate, but it helps to think of them that way to facilitate the study of IoT).

Why are businesses investing in IoT?

The market for IoT is huge! Today there are over 20 billion connected devices, and that number is growing at an incredible pace. With connected devices comes a tremendous upside opportunity for IoT investments.

Through 2020, estimates are as high as 1.6 Trillion dollars! In fact, McKinsy has determined that the economic impact of IoT will top 11 Trillion dollars by 2025! The reason companies are starting to make such big investments in IoT is because so much value can be created.

How the Internet of Things is impacting product value

The internet of things isn’t about the internet – it’s all about the things. The things are what’s changing. The trend of smart connected things is really accelerating now that there’s a computer of sorts inside just about everything! 

Today, according to the US government Census Bureau, there are about seven billion people on the planet Earth. About one-third of these people are connected to the internet with smartphones, tablets, and computers- yet in 2010 we hit an important milestone where there were more things connected to the internet than there were people on Earth This suggests these connected ‘things’ aren’t just smartphones, tablets, and computers anymore – they are fitness bands, thermostats, vehicles and more! This is where real innovation is happening.

Today, almost everything we have around us is capable of connecting. I’m talking about buildings, appliances, machinery, farms, hospitals, cities – all kinds of things. Now there’s a massive investment that is feeding this rapid expansion of the smart connected products – the internet of things solutions market. The IoT solutions market includes the smart connected things, the connectivity services, the software platforms and applications, the security, the analytics, and really everything related to smart connected products.

IoT Development Workshop

At EAC, we want to make sure you don’t miss out on any revolution with respect to potential capabilities that you can add to your products- while we also realize the importance of basing your IoT initiatives around your mission statement. That’s why we created what we call our IoT Development Workshop.

We have made it our mission to help guide organizations like yours to explore and embrace the uncertainty of the emerging IoT market.

The future of digital transformation is happening now, and it is driving the future of all industries. This article highlights just about everything you need to know about the impacts and trends involving digital transformation.

No matter where your company resides on its digital journey – or even if you have yet to start with digital transformation, this article is just for you.

What is Digital Transformation?

Digital transformation refers to the concept of applying innovative uses of digital technology to solve traditional business problems.

For example, in a narrower sense digital transformation might refer to a simple concept such as ‘going paperless’. Yet, on a larger scale, it might refer to ‘achieving digital business maturity’.

Digital solutions not only enable organizations to achieve new levels of efficiency through automation, but they also open doors for creativity and innovation (rather than simply enhancing and supporting traditional methods).

Although applying the use of digital technology to solve traditional problems can offer numerous business advantages, many organizations have yet to begin the journey with digital transformation.

Digital Innovation: Where to Start?

With numerous applications, methods, and strategies, it can be difficult to know where to even start with digital transformation!

If this is the case with your organization, – don’t worry, you’re not alone.

According to a research study performed by Accenture and the World Economic Forum, 80% of executives stated they were completely convinced ‘digital’ advancements would fundamentally change and transform their industry within the next 5 years!

That’s right. Eighty percent! … And they’re not wrong at all!

In fact, digital technology has not only already begun to transform industries, but it has also started to transform the way the world experiences products. Despite the ability to recognize the effects that digital processes will bring, only 17% of the studied executives stated they had a strategy in place to address the challenge of digital transformation.

This left a shocking 87% to admit they had no current digital strategy in place whatsoever! This is exactly why, if you have not yet started your digital transformation journey, it’s important to realize A) It’s not too late and B) You are not alone. There is no better time to start than now!

Organizations are realizing the significant impacts that the digital transformation era brings and how it’s going to drastically change just about everything when it comes to the way we do business.

The Impact of Digital Transformation

The process of digital transformation is creating entirely new ways of doing business. It has begun to create new experiences for customers while adding entirely redefined value propositions for mature product segments.

This era of digital transformation has started to impact and define what products are and what they mean to businesses and consumers.

Product perceptions are changing

Digital trends have also started to influence purchase decisions and sales processes. As the digital world has advanced, the average consumer is making purchase decisions with a Product as a Service (PaaS) mindset.

This means the rise of digital transformation has driven consumers to be sold by the outcome of the product – the recurring value. Manufacturers can address this shift in the market demand archetype by embracing three technology categories – Internet of Things (IoT), analytics, and mobile.

The future and advancement of technology is happening now

Established power plays and industry lines are beginning to blur. You cannot wait until some time in the near future to start your digital journey.

If your organization is going to succeed going forward, you won’t want to be left behind in this new industrial revolution, or you will fail.

Whether or not you’ve noticed if your industry has been affected yet, the key message is the effect of these disruptive technologies doesn’t discriminate one sector or industry. Every industry will see a major impact due to these digital technology advancements… And it is happening right now.

‘Business as usual’ is no longer an option. Organizations must adapt in order to survive.

The future of Digital Transformation: Smart, Connected Products

Digital transformation is reinventing products. Products from cars, to jet engines, to pumps, to heavy equipment, to medication, and more!

Machines, assets, and devices are starting to communicate, learn, and react to newly accessible context as they exchange and leverage data from sensors.

We are talking about the area of ‘living products’ – meaning transformative products that are responsive, collaborative, reactive, and responsible. Whether products are B2B or B2C, there will be a totally different process in the way we think about how our customers are using our products in the near future.

The future is now. Don’t let the opportunity slip away.

The first step in your digital transformation journey should be a strategic one. Understand where you are, where you want to be according to your current framework or understanding, and where you’d like to be as you embrace future technology and evolve with changing markets and new opportunities.

EAC Product Development Solutions would like to help you begin your transformation. We provide the people, technology, and services to make any transformation successful. The first step should be a Product Development System Assessment (PDSA). This will help you understand the opportunity that lies in front of you. Request more information on the PDSA today and start taking your digital transformation seriously.

Already know that you want to start dabbling in the Internet of Things (IoT) but have no idea where to begin? According to ARM, The Internet of Things Business Index, “A lack of IoT skills and knowledge among employees and management is viewed as the biggest obstacle to using the IoT more extensively.” EAC Product Development Solutions is offering the perfect way for you and your team to get started – with a hands-on IoT workshop.

This workshop, called the IoT Strategy Development Workshop, is pretty much what it sounds like…and it’s not just another class that delivers ideas of how the future is supposed to look. You actually get your hands dirty and work with your team to develop alignment between business initiatives, strategic frameworks, and vision statements. The workshop is 2 days and involves 4 different sessions including IoT Experience and Excitement, IoT Basics, Strategy Development, and a “Shark Tank” IoT pitch to peers.

Below you will find a transcript of a Q & A with Brian Ignaczak, Director of Research and Development at NORMA Group. Read about his team’s experience with EAC’s IoT Strategy Development Workshop. Contact us if you think this hands-on workshop would benefit you and your team.

Download the NORMA Group Q & A in a pdf file here.

NORMA Group develops AN IoT Strategy

Q: How did EAC’s IoT Strategy Development Workshop help you better understand IoT and how a smart connected product strategy could impact your business?

A: “The EAC IoT strategy development session showed us how we could add value through the use of data… it focused on the value-added business opportunity and helped us get over looking at just the gadget side of IoT.”

“I think the biggest takeaway we had from the EAC development session is that we were able to develop an IoT mission statement that aligned with our business initiatives. It brought together a number of stakeholders to put together an IoT plan that fit our organization. That has probably been the most durable product from our strategy session.”

Q: When did you realize the IoT could create more value for you and your customers?

A: “The EAC strategy development session helped us realize that IoT could be a big area of development for us. We want to be a technology leader. It fits with what we do. We want to stay on the cutting edge of technology and make sure that we don’t miss out on any revolution with respect to potential capabilities that we can add to our products. The session with EAC showed us many ways this could be possible.”

Q: In what ways did EAC’s strategy team help guide you to find your value drivers?

A: “EAC’s strategy team helped guide us to find our IoT value drivers through templates they had us work through. As we worked through the templates, we were able to see an underlining IoT strategy that suited our organization. These strategy templates forced us to fill in what we were really trying to accomplish with IoT.”

Q: How did your team define and prioritize potential smart connected product ideas?

A: “EAC helped us determine where exactly we were headed with IoT. We were able to thoroughly evaluate if we were trying to open up new markets or try and better serve our existing markets.”

“Looking at smart connected product ideas that our organization could pursue, we decided to focus on opportunities within our existing markets.”

“EAC helped us identify two main areas that smart connected products could fit our business model. The first had to do with addressing customer pain points through the creation of digital products. The second had to do with upcoming changes to the market that were coming via regulations. Their team really showed us smart connected products that could work as solutions for our organization.”

Q: What has been the biggest benefit of having a customized IoT plan to fit your company’s strategy?

A: “From EAC’s strategy development session we were able to determine an IoT framework that we now can discuss. It made our endpoint more concrete. We realized things we weren’t going to do versus things that were possible for us to do. They helped us identify how the revenue streams would flow based off of that.”

“EAC helped our company by setting a realistic IoT vision we are able to work towards.”

Q: What impact did EAC’s IoT processes have on your own strategy building sessions going forward?

A: “EAC helped us realize the importance of basing our IoT initiatives on our mission statement. The impacts of these processes remind us to continuously review that we are headed in the right direction.”

“The strategy sessions EAC held gave our company an anchoring point with IoT. Now, as new opportunities come up, we use the methodologies we were shown to develop products that will meet our vision.”

Q: Describe how EAC’s hands on connected product experiences provided a relatable IoT experience for you.

A: “EAC’s hands-on connected product experiences opened our eyes to the vast amount of data that can be produced. It made us realize how quickly data can be processed in real time. It showed us the vast quantity, the amount of processing power that is available, and how it could all be used to produce something of value.”

“Seeing live data stream on the computer screen and realizing how quickly that is communicated was pretty eye-opening.”

Q: How did the IoT Concepts presentation help frame a basic understanding of your current state and future opportunity that IoT provides?

A: “The IoT concepts presentation helped frame a basic understanding of our current state and future opportunity. It goes beyond technology and starts explaining how others have started to transform their business. The case studies really helped us to understand how some of our peers in the industry have begun to adapt to the changing technology and transform their business.”

Q: During the strategy development session, how did EAC help you realize the alignment between your business strategy framework and business statement?

A: “During the strategy development session, EAC had us break up into groups. We all developed plans and pitches based on an IoT implementation. From there, each group presented their idea to the wider audience. It was really interesting to see how different teams approached the opportunity. After the presentations, we had an open discussion as to what the pros and cons were of the different scenarios that were presented. We are currently moving forward with the winning concepts of those strategic plans.”

Q: Do you feel that EAC had the proper techniques, strategies, and knowledge behind IoT to help implement these new strategic initiatives?

A: “EAC absolutely had the proper techniques, strategies, and knowledge behind IoT to help implement our new strategic initiatives. They have been a very valuable partner for us throughout the process. They are the reason why we have been able to start moving forward with our development. We have made a lot of progress since then.”

Q: What might you say to other companies considering a strategy development session with the EAC specialists to develop or implement an IoT plan?

A: “I feel that EAC’s processes are a great way to jump-start IoT strategy development. Having an outside voice is a very important aspect of that. They come in with a different point of view and it really helped bring together the different viewpoints from our stakeholders and teams.”

“EAC’s processes definitely helped us push forward. (EAC) has been a really good partner in furthering what we’re trying to accomplish. For us, getting beyond just the technology side and really trying to build IoT into a business plan is one of the things that they have emphasized. They helped explore the best possibilities for us.”

“We have been more than happy with the engagement of EAC. We feel that they have a tactical view of how projects move forward. With IoT, there is a lot of uncertainty and there are many companies that don’t deal well with that. EAC helped guide us to explore and embrace the uncertainty of the emerging market.”

Is EAC’s IoT Strategy Development Workshop right for me?

Unpack the digital revolution within your company by developing an IoT strategy within your organization. NORMA Group found value in taking this 2-day hands-on workshop. Contact us to start your own IoT journey.

Download the NORMA Group Q & A in a pdf file here.

Remember in 1977 when Ken Olson, the founder of Digital Equipment Corporation said, “there is no reason anyone would want a computer in their home”? Boy was he wrong. Not even a leader in the technology industry could predict how quickly our usage of technology would change.

If you don’t make an effort to keep up with the fast pace of technology; you will fall behind. It’s critical that you proactively embrace and move towards digital processes to ensure that future products better meet the needs of customers.  

What better way to keep up with the future than making highly accurate product performance and behavior predictions with the right design tools? 

PTC developed a Creo extension called Creo Product Insight. It lets designers and engineers incorporate the latest sensor technology into their designs.

What is Creo Product Insight?

Creo Product Insight captures and analyzes product data from live sensors on prototypes and products directly within your CAD model. This tool produces a digital twin, an exact replica of a physical prototype in a virtual CAD model, to mirror the performance of a product under real-world conditions.  

How does it work? You add digital sensors from a library directly into your CAD models in Creo. Then you connect them to the data streams from physical products. Whether you’re looking to get more value out of your prototypes, design smart connected products, or use data to improve the quality of existing products, the Creo Product Insight Extension allows you to design smarter. 

So how are organizations keeping up with the digital transformation with the Creo Product Insight Extension?

Improving New Product Design

When you’re improving new product design you’re most likely basing your design decision on assumptions and historical data. This puts you in a difficult spot because you may not have up-to-date-information which may cause inaccurate solutions and error-prone results. 

Creo Product Insight allows you to validate design assumptions using real-world data from the field directly in Creo’s simulation and analysis tools. Using this extension also decreases your reliance on building prototypes because it gives you live product performance and behavior. 

Improving Existing and Next-Generation Product Designs 

The absence of real-world product data stunts the optimization of current and future products. If you had access to real-world data, you would be able to validate design criteria against customer usage data and mitigate risk of product failure, warranty, repair, and liability. 

With Creo Product Insight and ThingWorx you can analyze field data and provide meaningful information back to engineering. Using real-world data allows you to identify opportunities for new products in the market and understand over and under engineered designs to reduce product life cycle costs. 

Improving Smart Connected Product Design 

The lack of specialized tools that support smart connected products puts you at risk of falling behind the digital transformation process. When sensors and a strategy to capture real-live data are disconnected from your design process there is no way to deliver the value that your customers deserve out of their products.  

Creo Product Insight gives you the ability to optimize sensor replacements, choose a sensor type, and validate data capture requirement during the design process. The extension creates an integrated design process that delivers optimal value from smart connected products.  

Creo Product Insight Capabilities and Benefits

Capabilities:

Benefits

Creo Product Insight Licensing and Creo Version Capabilities

The Creo Product Insight is an add-on extension that is available for subscription licensing only. You do not need ThingWorx to use this extension – although using ThingWorx with it will fully optimize your results.

“Physical” Sensors – Creo 4 (M020):

UX Sensors – Creo 4 (M030 & M040):

“Virtual” Sensors – Creo 4 (M050):

Get live data from CAD models

Download the Creo Product Insight datasheet or watch this webinar replay to learn more and see if your organization could benefit from collecting live data directly within your CAD models. I’m willing to bet it can.