Smart, connected products enable six new capabilities manufacturers must adopt strategically. For manufacturers, the implications of this emerging “Internet of Things” are huge. So how did we get here? Though the convergence of market forces and the innovation of enabling technologies.

1. 1
The Internet of Things
Smart, Connected Products Enable
Six New Capabilities
Manufacturers Must Adopt Strategically

2. 2
• For manufacturers, the implications of this emerging
“Internet of Things” are huge
• So how did we get here?
• A convergence of market forces and innovation of
enabling technologies
The Internet of Things

3. 3
Major Forces of Transformation in Manufacturing Sector
DIGITIZATION
REGULATION
CONNECTIVITY
SOFTWARE-INTENSIVE PRODUCTS
GLOBALIZATION
PERSONALIZATION
3
SERVITIZATION
External forces are
reshaping the
manufacturing
Products are evolving
to be smart and
connected
When combined,
these forces will
transform the industry

4. 4
• Computing
Infrastructure
– E.g. Increasing Processor
Performance/Efficiency
• Communication
Infrastructure
– E.g. Evolution of Connectivity
• Things
– E.g. Miniaturization and
Efficiency of Components
3 Categories of Innovations in Enabling Technology

5. 5
The IoT is comprised of the three core components

6. 6
1. Personalize and
Customize
2. Monitor Condition
and Operation
3. Monitor Environment
4. Remote Control
5. Service/Upgrade
6. Autonomous
Six Unique Capabilities of Smart, Connected Products

7. 7
• Value is Shifting from
Hardware to Software
• Value is Shifting from
Product to Cloud
• Value is Shifting from
Product to Service
The Sources of Value and Differentiation are Shifting

8. 8
• Manufacturers must rethink how they
create, operate, and service products in the IoT
• To learn how, download the eBook:
Responding to the Internet of Things