Case Study 3: Heidelberg, Honeywell and Eaton – Smart Product and ServicesGroup 2:1.Peeyush Thakur2.JyotiPrakash Chowdhury3.Kothandaraman Rengarajan4.Supriya Sen

Inputs from Case Study: Heildelberg

World leader in High end printing press for printers and print media producers

Use of smart product Built-in Sensors Networking Processors IT such as Monitoring and reporting capabilities Wireless mechanism e-Business (B2B)

Use of Smart Services Detect faulty machines Report Heath status of the machines

Using built-in sensors Self monitoring and Networking Capabilities Removal and Re-Sale of machines

Advantages Low cost maintenance Ease of usage Effective Information Sharing Optimized printing performance of customers Lower repair cost Support the regional and global support technical specialists

Inputs from Case Study: Honeywell

Global Conglomerate Petroleum and Refinery control and Automation Systems

Use of Smart Services PKS (Process Knowledge Systems)

System of operation and information technology to Monitor remotely via network connections on the

refineries Perform variety of manufacturing support Optimization task by customers 

Advantages Fewer False alarm Less unanticipated downtime Lower Maintenance cost Lower Operating Cost Increased value for Premium Services which in turn

increase the profit opportunity Increase the scope of other services

Inputs from Case Study: Eaton

Axles and Truck part manufacturing. Later diversified with Residential Circuit Breaker

Use of Smart Product Home Heart Beat System

Water Sensors and Water Shutoff Valve Open Close Sensors and Automatic Sensors Power Sensors Wireless network Key Fob Device

Communicates only with limited range but captures data about the status of your home. e-Business (B2C)

Use of Smart Service Monitors the status of various home systems Alerts home owner when something is missing through cellphone, emails, SMS

Advantages When out of home or vacation you can remotely

Control the devices such as : Power outages, Bust Pipes, Unexpected Cold Front, Water Heaters

Get Status of those devices through : Cellphone , Email, SMS Build awareness and connectivity to devices which is already selling turning them into

smart products Position itself into a Service provider apart from product vendor No longer consigned to obscure corner of the industry New Business Integrator with new range of partners from Wireless carriers to Insurance

companies to Smart Services

Q1 - Why should manufacturing companies build smart products and provide smart services?

Manufacturing Industries are plagued by the following challenges High Maintenance cost and Operating cost Manual tracking efforts Inefficient resource allocation/Reliability Logistics difficulties No feedback systems Slower production cycles Less business expansion opportunities Competition from Rivals for market share

In order to overcome and sustain the market share ,the manufacturing industries must invest and improvise use of IT and so called Smart Services and Products

Answer to Q1 (Continued) "Smart products & Services” leverages the following :

intelligent, electronic ,electrical and mechanical components

Connectivity to customers for greater utility , trouble-free operation and more customer satisfaction throughout the product lifecycle.

Improved OEE (Overall Equipment Effectiveness) Increased awareness and offerings with the product

Smart Products and Services provide the manufacturing industries with the edge of technological innovation to carry out its operation in a streamlined way .It also provides the manufacturing unit the following advantages :* Decrease of operating and maintenance cost* Increase of Market Share and profits* Increased Customer orientation of the products

Q1 - What business benefits can they gain? Provide several examples beyond those discussed in this case

Low Operating cost and maintenance cost Eg AMD -Lean Processes in FAB Manufacturing Increase end-user productivity Eg Dell Customizable

Software Increase convenience to end-user Effective Information Sharing / Tracking Eg Fedex

Courier Tracking Software Performance Optimization Eg Ti-Bicycles Demand

Based Forecasting Proper utilization of available resources Less unanticipated downtime Increased value for Premium Services which in turn

increase the profit opportunity Increase the scope of other services Opportunity to expand into new arenas of Business Increase OEE (Overall Equipment Effectiveness) Increased Brand Image 

Q2 - What information technologies are used by the companies in this case to build smart products and provide smart services?

•Please refer to Slide 2, 3, 4 as we have covered already on this • Other than that IT is used in

Q2 - What other IT components might be used? Give example of the capabilities they would provide.

e-Commerce Buy and Sell without intermediaries Refurbished products can also fetch profits

Database Management We can do Data Mining and implement Fuzzy logic to

do Analysis and trending of Business Operation Customer Relationship Management

Improve customer Behavior and Experiences Identify customer purchase / demand behavior

trending Identify competitive Strategies for effective Decision

Making Supply Chain Management

Improvement of logistics Ease of part procurement

RFID VNC (Virtual Networking Control)

Q3 - What are the some limitation of Smart Product and Smart services strategies? Give several examples that a business might encounter and explain how it might overcome them.

Increased IT cost for implementers Any addition in product and services will add IT cost

Monopolistic behavior / Market Trends CISCO Higher-end Routers - Only vendors that supply (Juniper is still

ramping up) PMC Sierra

Communication IC for Japanese, American, European Telecommunication standards

Dependency on specific IT components (as in case of Eaton it is Wireless Network)

Dependency on Specific vendor Apple depends on PowerPC Micro-Processor only Google (Android Mobiles) dependency is on HTC as the only vendor

Data Security A lot of Industry and Government compliances are concentrating on

individual privacy. Smart product and services may intrude into individual privacy.

There is high risk of capturing individual / business sensitive data

High Skill Manpower Requirements Loss of Employment due to automation Sustenance of complex system