smart services and smart products heidelberg, honeywell & eaton corp case study

Smart Products and Smart Services - Heidelberg,

Honeywell & Eaton

Vaidehi. R

Anne Helena. D

Prashanth.C

Sasikumar. S

Hallin Shano

About Smart Products and Services

• Embedded Service - Paving the Way for Smart Products• Smart products do not 'become smart' by throwing more features.• Rather smart products get smart by using Internet-delivered

services.• Businesses are rushing to get embedded systems into the hands of

workers to improve operations.

Example: Police departments, airlines, shipping services, rental car agencies.

Uses of Smart Services

• Minimize maintenance and repair cost.• Cost effectiveness.• User Friendly.• Time effectiveness.• Customer and user satisfaction.

Heidelberg

• High-end Printing Presses for printers and print media producers.• Smart Product: Ability to monitor its equipments remotely using built

in sensors, networking microprocessors and other IT technologies.• Insight to optimize printing performance.• Minimize maintenance and repair cost.• Financial year 2010/2011: Heidelberg presents figures for first six

months – significant rise in incoming orders.

Honeywell

• Control & Automation system for Petroleum Refineries• Represented small part of cost involved in operating and

maintaining a refinery.• Experion Process Knowledge System: A system of operations and

information technologies deployed at a customer’s refinery but remotely controlled by Honeywell.

• Fewer false alarms, less anticipated downtime and lower maintenance cost.

Eaton Corp.• Began making axles and later diversified into residential circuit

breakers • Home Heartbeat: Monitors the status of various home systems and

alerts the homeowner when something is amiss.• Usage of water sensors, open/closed sensor, power sensor and

wireless network.• Sustainability: At Eaton, sustainability isn’t an autonomous program

or initiative. It’s how they do business – and it’s an increasing part of their business success.

Honeywell Contd.

• Enabled Honeywell to increase scope of other services provided to customers.

• Fortune 100 company that invents & manufactures technologies .

Question 1

Why should manufacturing companies build smart products and smart services?

What Business Benefits can they gain?

Provide several examples beyond this case.

IMPORTANCE OF COMPANIES TO BUILD SMART PRODUCTS & SERVICES

• Its not enough for companies to offer valuable services for their products but to provide “smart services.”

• For smart services, usage of IT to build “smart products,”

• Smart products can detect approaching failure and alert users.

• Gives the company opportunity to provide maintenance services and enjoy the resulting benefits.

BUSINESS BENEFITS THE COMPANY CAN GAIN

• In business, “Smart” means solving problems fast and efficiently. • Decreases the cost and increases the profit.• Expansion of customer base in the market.• The functionality, efficiency, reliability and sustenance of smart

product and service will also be the other key components to affect the customer and market.

• The more functions a product has, the higher price will be sold.• If manufacturing companies can develop smart products or smart

services, they can gain those benefits.

Examples Of Smart products

• Smart Systems for Cars for Safe Mobility and pedestrian safety

Pedestrian Recognition, Intersection Control, Lane Departure Warning, Stability Control, Detection of Surface and Pavement Conditions, Night Vision, Driver Condition Monitoring, Redundant Systems for Vehicle Control and Emergency Shutdown

• Driver Assistance Smart System

Autonomous Handling of Routine Driving Conditions, Driver Information on Traffic, Intelligent Speed Adaptation, Sensing of Driver’s Intentions; Intelligent Transport Systems

Example of a smart service:

Smart Field Communicator (SFC) Model • A battery-powered device • Secure 2 way communications between Honeywell Smart

Transmitters and the user over the existing signal lines.• Useful for simplifying maintenance by providing access to field

devices without a trip to the field.• When the SFC is connected - transmitter signal lines at an

accessible location anywhere from the control room to the transmitter, the operator can send and receive data.

• a weather-proof carrying case, a Ni-Cd rechargeable battery pack and a battery charger.

What information Technologies are used by the companies in this case to build smart products and services?

What other IT components might be used and their Capabilities?

Question 2

Information Tech used by the companies

HEIDELBERG (Printing Company) Smart printing services comprising of built in sensors, networking

microprocessors and internet. HONEYWELL (Petroleum Refinery) Experion process knowledge system comprising of control and

automation systems, remote network technologies and knowledge system.

EATON CORP (Electrical Appliances)Home heart beat Systems comprising of water sensors, open/closed

sensors, power sensors, wireless communication system and a key fob device(used by customer to communicate with base station)

Other IT components that might be used

• Operational level systems - Machine control, order tracking, material movement control, Plant scheduling etc.

• Knowledge level systems - Engineering workstations, graphic workstations, document imaging and process knowledge systems.

• Management level systems – sales region analysis system, sales management systems, production scheduling systems, inventory usage and control systems etc.

• Strategic level systems – 5 year sales trend forecasting systems, 5 year operation planning systems, Personnel planning and job rotation systems etc.

What are some limitations of a smart products and services startegy?

Give examples of challenges that a business might encounter and how to overcome them?

Question 3

Limitations of Smart products and Smart Systems

• Infrastructure cost incurred for initial installation at customer end.• Focus on Elite customers.• Embedded Technology – reliability issues.• Usage of network – internet, mobile technology and other

communication technologies.• Reliability of sensors and microprocessors.• Not feasible for a huge customer base.

Business Challenges Faced by Companies Manufacturing Smart products and services.

• Marketing challenges for smart products.• Peoples perspective towards smart products and services.• Price of the smart products and services.• Customization for diverse customer base.• Lack of chances for mass production.• Market penetration.• Rapid changes in technology.• Short comings of the current communication and networks used by

the the smart products company.

Methods to overcome Business Challenges

• Usage of Appropriate technology for development of smart products and services.

• Understanding the needs and requirement of consumer base and expansion in consumer market.

• Integrating simplicity of operation and functionality.• Adaptation to changing IT and IS and incorporating the same in the

products and services. • Usage of quality parts and components in smart products and

services.

Thank You