Building The Smart Solution Bedrock for OEMs’ Business Transformation

In the past decade, IoT has emerged as a transforming force for major organizations, including OEMs. Research by Bain & Co. indicates that more than 33% of major OEMs with multi-billion dollars of revenue have already started business transformation projects, yet only 12% of these change programs succeed with promising results. This is because successful business transformations are no longer limited to developing innovative programs periodically; they are about creating an ongoing process of transition into a business’s operating rhythms. The key to success lies in the ability of stakeholders within the organization to develop a long-term strategy for change-program roadmap and embrace it entirely.??

With the rise in new technology adoptions, the manufacturing industry can’t survive with traditional sales (product-centric). It needs to pace up if it wants to gain a competitive edge. This can only happen when industrial OEMs move a step ahead of technological disruptions. They should not only understand but incorporate AI/ML, IoT and Big Data into their business processes. These technological disruptions will define the future of OEM business.??

“The global industrial Internet of Things (IoT) market size was estimated at USD 394.00 billion in 2023 and is projected to grow at a CAGR of 23.2% from 2024 to 2030,” Grand View Research .?

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The convergence of AI, Industrial IoT, and big data analytics is rapidly gaining momentum as OEMs and Enterprises explore how to leverage these technologies to secure business continuity and develop new revenue streams.??

Industrial OEMs must eventually adopt IoT and other evolving technologies in the Mega-Trend to preserve existing margins and introduce a fail-proof business model against technological disruptions. The shift from product-centric traditional sales to a customer-oriented (servitization) approach is the need of the hour. If an OEM does not take action today, its competitors will.???

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But how will you create this IIoT foundation layer???

It can only happen when you inculcate smart solutions into your existing product lines. Embedding smart edge capabilities into product lines provides industrial OEMs with operational data collection, but this is still insufficient. The digital connectivity should bring faster data processing and automatically bring data into value. This is where 80% of OEMs feel stuck. To persist with this data processing evolution and to fully utilize the rewards, manufacturers must utilize Big Data and AI/ML-driven insights through which they can create a foundational layer to accelerate the development of smart industrial solutions that could further enhance their business decisions. This is where an Application Enablement Platform comes into the picture. Using an AEP, you can develop smart industrial applications like APM (Asset Performance Management), ARM (Asset Remote Monitoring), AI/ML powered predictive/preventive maintenance solutions, Smart Integrated Systems, Field Ops, AIOps, and other smart solutions.??

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Conclusion??

Since smart solutions are becoming the survival appetite for OEMs, they must leave the traditional solutions. Such solutions bring the benefits of smarter product lines, enhanced customer-centric solutions, multiple revenue streams, and a competitive edge, which are the major factors diversifying their business and bridging the long-term success graph.??

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