Tagged: business model

5 Business Ideas to Automatize Processes with IoT

The Internet of Things and Cloud Computing have been accelerating the digitization of different economic sectors from the last 30 years. This is exactly the case of the Industrial Sector, where pioneers, started decades ago working on digitization and process automation, always looking better efficiency in their processes to be more competitive. This digital revolution of  Process Automation started in the fabrication area, inside the factories,  where the computers started managing connected machines and business systems.

Ten year ago, match in time  with the first mobility technologies and other technologies like Radio Frequency IDentification (RFID) or GPS Systems in real time, another process started in the factories: the automation of processes outside factories, like logistic systems. Nowadays it seems normal to see traceability packages from factories to clients or in other areas of supply chain like inventory warehouse. Since a few year ago, many companies in different sectors are including Internet of Things in their strategies to transform and digitalize their businesses. The consequences  of introducing this tech are various and can give an answer to many different cases. The Process Automation outside factories is a good illustration about the use of IoT technologies to cost reduction and better efficiency.

When a company decides to transform their products into connected products, including sensors and internet connectivity into them, on one hand they want to explore new business models and in other hand  they also can use this information to automate some processes thanks the new information available or remote control over the products.There are so many examples already available, for example about Condition Monitoring ( we wrote a post about that here with a few examples)  on of them is Max, an elevator of Thyssen Krupp.

In the lift case,The elevators companies can introduce IoT in their maintenance processes and  include some sensors to receive information, analyze that and can predict some errors or failures before they happen. This improvement is a big change because now you can have the information in real time and before this specific information was only available if the maintenance team are there. The evolution of lifts towards the Internet of Things to the lift permits :

  1. Analyzing operational data from distance and improve the predictive maintenance, avoid failures  for example in some pieces that are starting to work improperly. It can automatize the maintenance, programming better scheduled calendar, including less maintenance.
  2. Improving the on-site maintenance by automating the process of provisioning the list of materials needed by the technician to do the job on the first visit. Therefore avoiding a second visit an intervention with the associated extra cost.    
  3. Automate the supervision of Service Level Agreements (SLAs) guarantee and process. Because you have real time information about availability and operation of the equipment, companies can improve their warranty service.
  4. Some quality processes can be automatize too, because now you have almost all the  statistical  information needed in the detection defective parts or production batches.  
  5. Billing processes can be improved by IoT too, for example including new variables like usage based billing usage conditions.

The Automation Process for connected objects is just one of the multiples choices  and challenges that  Internet of Things offers. If we have a map of the processes of a company, we will surely see IoT impacting in most of them. In some cases we can even see how the process is transformed from a manual process into a fully automated process.

Take for example a car rental through a mobile app . Thanks to IoT, now you can choose a car in one point of a city and return it in another place without human interaction in the process. Companies like Car2go and Emov are already this service in Madrid City.

Are you thinking to improve your business processes and be more efficiency with IoT? Contact us, tell us about your business  and we offer our best IoT solution to you.

Recently our CEO Miguel Castillo was invited by ICEMD (spanish) to write an article about Process Automation and IoT. This post is not a literal traduction but include some of his words in that.
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Internet of Everything: Does it make sense? Not for you, but for other perhaps

We are at the dawn of a new technology era where objects are connected to the Internet. It is true that the possibilities are huge for new products or services. At Carriots we believe that we are the beginning phase of this era where:

  • A lot of Start-ups are sprouting in the Internet of Things business
  • You can find the first IOT products for B2B and B2C
  • Investors are very interested in the concept and willing to finance projects
  • Early adopters start to implement the technology and buy the products
  • Tech media starts to publish a lot of material and mass media talks about it sometimes
  • Big Companies embrace the IOT concept in their Marketing Strategy

As a result we begin to see hype growing rapidly every month, as more people and companies jump in. The question is: Are we inflating expectations and uses of Internet of Things?

A few years back, the consulting firm Gartner developed the theory of the Hype Cycle to help their customers manage expectations and make a reasonable use of technologies. They converted the different phases of maturity, adoption and social application into this great graph:

The Hype Cycle from Gartner
Source: Wikipedia http://en.wikipedia.org/wiki/File:Hype-Cycle-General.png

Although this theory has detractors, we think it is a nice tool to help you think about the present and future of IOT.

So when we see big companies like Cisco endorsing the concept of Internet of Everything we might think that “Everything” is perhaps over hyping expectations too much. What do you think?

Now let’s play a game together to forecast the future. If you think of a kitchen and Internet of Things what products come to your mind?

  • A connected fridge that purchases groceries for you and helps you cooking? We have seen plenty of these products already available. Would somebody buy this product? Well… Is there a real benefit for the user? Not quite yet. Would all the fridges connected to the Internet in the future? Not so sure. The Carriots team is full of geeks that prefer traditional refrigerators.
Example of Refridgerator connected to the Internet to get recipes and Tweet
  • What about a connected Toaster? Well that we are sure that there is no future for such a gadget. 0 votes here for tweeting when breakfast is ready.
A simple toaster. No need to tweet
  • So what about your coffee machine? Wait a moment here! Well for you it might not be interesting to connect your coffee machine to the Internet. But for the manufacturer of the machine it might be interesting. In fact a lot! Some companies like Nespresso already implement M2M technology in some products for B2B. Well that’s B2B and your coffee machine is B2C so what is the point? For the manufacturer of your capsule coffee machine it might be very interesting to know what brand of capsules you purchase. In fact it is no so difficult to know which is the manufacturer if they use different materials like aluminium and plastic. Lots of manufacturers already detect if you use original replacement parts or not in their products, take for example printers. A company that follows a “Razorblade” business model depends on loyalty to the replacement product and IOT technology might be a excellent tool to many of business processes envolved.

So when we talk about Internet of Everything we are taking the concept too far. But if for you the concept of a connected product is not interesting, perhaps there is another party interested in it. A product that you use can provide very useful information to the manufacturer, the supplier or replacement parts or even market analysis firms, to name a few.

So as the cost of this technology drops and more uses can be found, we will come close to the Internet of almost Everything.

Internet of Everything: Does it make sense? Not for you, but for other perhaps.

We are at the dawn of a new technology era where objects are connected to the Internet. It is true that the possibilities are huge for new products or services. At Carriots we believe that we are the beginning phase of this era where:

• A lot of Start-ups are sprouting in the Internet of Things business

• You can find the first IOT products for B2B and B2C

• Investors are very interested in the concept and willing to finance projects.

• Early adopters start to implement the technology and buy the products

• Tech media starts to publish a lot of material and mass media talks about it sometimes

• Big Companies embrace the IOT concept in their Marketing Strategy

As a result we begin to see hype growing rapidly every month, as more people and companies jump in. The question is: Are we inflating expectations and uses of Internet of Things?

A few years back, the consulting firm Gartner www.gartner.com developed the theory of the Hype Cycle http://en.wikipedia.org/wiki/Hype_cycle to help their customers manage expectations and make a reasonable use of technologies. They converted the different phases of maturity, adoption and social application into this great graph:

Image 1 ( http://en.wikipedia.org/wiki/File:Hype-Cycle-General.png

)

Although this theory has detractors, we think it is a nice tool to help you think.

So when we see big companies like Cisco endorsing the concept of Internet of Everything http://www.cisco.com/web/tomorrow-starts-here/ioe/index.html we might think that “Everything” is perhaps over hyping expectations too much. What do you think?

Now let’s play a game together to forecast the future. If you think of a kitchen and Internet of Things what products come to your mind?

• A connected fridge that purchases groceries for you and helps you cooking? We have seen plenty of the products already (http://revoseek.com/technology/internet-connected-social-refrigerator-to-read-recipes-and-tweet/ ) Imagen http://revoseek.com/wp-content/uploads/2012/01/Internet-Connected-Social-Refrigerator-to-Read-Recipes-and-Tweet-1.jpg Would somebody buy this product ? Well… Is there a real benefit for the user? Not quite yet. Would all the fridges connected to the Internet in the future? Not so sure. The Carriots team is full of geeks that prefer traditional refrigerators .

• What about a connected Toaster? Image http://www.ohgizmo.com/wp-content/uploads/2010/05/kenwood_toaster.jpg Well that we are sure that there is no future for such a gadget. 0 votes here for tweeting when breakfast is ready.

• So what about your coffee machine? Wait a moment here! Well for you it might not be interesting to connect your coffee machine to the Internet. But for the manufacturer of the machine it might be interesting. In fact a lot! Some companies like Nespresso already implement M2M technology in some products for B2B http://embedded-m2m-solutions.tmcnet.com/topics/embedded-m2m-solutions/articles/269278-nespresso-leverages-oranges-machine-to-machine-solution-enhance.htm . Well that’s B2B and your coffee machine is B2C so what is the point? For the manufacturer of your capsule coffee machine it might be very interesting to know what brand of capsules you purchase. In fact it is no so difficult to know which is the manufacturer if they use different materials like aluminium and plastic. Lots of manufacturers already detect if you use original replacement parts or not in their products, take for example printers. A company that follows a “Razorblade” business model ( http://www.investopedia.com/terms/r/razor-razorblademodel.asp ) depends on loyalty to the replacement product and IOT technology might be a excellent tool to many of business processes envolved.

So when we talk about Internet of Everything we are taking the concept too far. But if for you the concept of a connected product is not interesting, perhaps there is another party interested in it. A product that you use can provide very useful information to the manufacturer, the supplier or replacement parts or even market analysis firms, to name a few.

So as the cost of this technology drops and more uses can be found, we will come close to the Internet of almost Everything.

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