Dr. Jay Bal

International Institute of Product and Service Innovation

Jay.bal@warwick.ac.uk

AMSCI – Advanced ManufacturingSupply Chain and the Internet of

Manufacturing Things.

How will it change manufacturing?

• Transform How Products are Created– Manufacturers must plan and design flexible platforms that enablepersonalization, value added services, and product enhancements to bedelivered remotely before and after the product is in the market– Manufacturers must design out the complexity created by combiningprocessors, sensors, software, digital user interfaces and connectivity,and deliver a simple user experience– Manufacturers must incorporate product usage data into R&D processesand drive new functionality, define specifications, and increasecustomer intimacy

• Transform How Products are Serviced– Manufacturers must plan and deliver remote software and service updatesin real-time, with minimal customer disruption, and at minimalmarginal cost– Manufacturers must plan and optimize product and service parts managementand inventory control by tracking assets and analyzing real-timeproduct usage data to predict parts needs– Manufacturers must plan and optimize field service managementprocesses by bundling proactive and reactive maintenance and providingtechnicians with information in advance to increase first time fix rateTweet Post

• Transform Business Models– Manufacturers must rethink business processes and business models tomaximize returns across the entire useful life of the product, and not justup to the point-of-sale– Manufacturers must plan for increased complexity of expanded partner andsupplier ecosystem, and consider the opportunities and threats they create– Manufacturers must capture and analyze product data to anticipate productservice needs and user desires for additional services and capabilities

Benefits?

RESPONDING TO THE INTERNET OFTHINGS

Manufacturers must begin to transform existing business processes andfundamentally rethink how they create, operate, and service smart, connected

products in the IoT. For those that get it right, the future represents ahuge opportunity to create product and service advantage:

Companies can begin taking steps now to position themselves forthese changes by using the new technologies to optimize businessprocesses in which traditional approaches have not broughtsatisfactory returns. Energy consumption efficiency and processoptimization are good early targets. Experiments with the emergingtechnologies should be conducted in development labs and insmall-scale pilot trials, and established companies can seekpartnerships with innovative technology suppliers creating Internet-of-Things capabilities for target industries. McKinsey QuarterlyMarch 2010

Thank You