HOW SMART CONNECTED PRODUCTS ARE TRANSFORMING COMPANIES
The article examines the internal implication of smart connected products and it mainly touches on their impact in the manufacturing firm. Note that in the manufacturing firm there are different roles such as products development, sales among other emerging functions which are related with data management (Porter & Heppelmann, 2015). All these functions create the manufcaturiung structure which are impacted and influenced by smart connected products. The latter has the capability to bring changes in companies through its physical, smart and connectivity components. In other words, the smart connected products have technology infrastructure which plays a fundamental role in data exchange, data storage, data flow and analytics. The main purpose of the technology infrastructure is to provide the smart connected products with the capability to monitor the environment and report unavailable insights to enhance performance, helps the user to customize the functions through remote-access options and optimize products (Porter & Heppelmann, 2015). The smart connected products acts as a source of data to the manufacturing firms. Data is important in modern business and the smart connected products are providing real-time readings and the data is combined with other data to increase the value (Porter & Heppelmann, 2015). The new data analytic (DA) is bringing valuable business functions and the company is able to derive a rich data by using a new tool known as ‘digital twin’. The tool helps the user to gain an insight of the status of the physical product and how the product can be develop through new designs and operation and services (Porter & Heppelmann, 2015).
The rich data generated to companies by the smart connected products and the capabilities play an important role in transforming the value chain (Porter & Heppelmann, 2015). For example, in the product development, the smart connected products have a rethinking design which is capable to shift the product development from mechanical engineering to software engineering. In addition, the smart connected products have a new design which is making variability an easy process hence increasing effectiveness in meeting the demand of the customer and localization of products in different geographical areas (Porter & Heppelmann, 2015). The smart connected products have an evergreen design and companies are able to use remote software updates and fine-tune the products in order to meet the desired performance. Other new design which has been brought is user interface for remote operation and monitoring. Augmented reality is a new interface which is used by users and the app is connected to smart phones for operation mobility (Porter & Heppelmann, 2015). The generated data and user interface which helps in monitoring the product improve management in corporations. The quality management foresees new business models such as services models. Other point is that the smart connected products are bringing benefits to corporation as now they can develop system interoperability which leads to design optimization of products (Porter & Heppelmann, 2015).
In areas of manufacturing, companies are meeting new opportunities. For example, manufacturing operations are improved by automated networked machines which play a fundamental role in product optimization. The shift of mechanical to software is effective in eliminating the physical complexity and increasing the sensor and softwares. The smart connected products have the capability to generate standardized platforms in the manufacturing process and assist the firms in increasing the economies of scale (Porter & Heppelmann, 2015). Furthermore, smart connected products are generating marketing and sale opportunities which connect product track and customer relations. Profit and revenue are mostly generated from after-sales serve and the smart connected products bring a fundamental shift and allow the companies to deal with preventive and proactive services (Porter & Heppelmann, 2015).
Lessons learned
The information in this article has expanded my knowledge on marketing. The most important point I won’t forget is that smart connected products has the capability to increase economic value. I have also learned that the value is improved through manufacturing. Effectiveness is achieved since the smart connected firms reshape the manufacturing functions and business is able to make great progress (Porter & Heppelmann, 2015). The new technology is providing the manufacturing firms with new strategies which they are applying in new operations and industrial structure. Other interesting thing is that the customer interaction is changing and it is being influenced by rich data and smart connected products capabilities. In addition, the capabilities are able to bring new processes in all functions in the manufacturing process are reshaped (Porter & Heppelmann, 2015). In general, I have learned that in the digital world, the emerging technology is transforming everything and businesses need to get ready for the inevitable change in order to bring a profound difference in the economic arena.
Reference
Porter E. Michael & Heppelmann E. James. (2015). How Smart Connected Products Are Transforming
Companies. Harvard Business Review
