by Josh Simi, on September 30, 2015
For some applications, the reduction of risk is a key value proposition of a connected product offering. Risk can be reduced in a variety of areas, including:
Personal injury.
By monitoring equipment usage and performance trends with an IoT platform, misbehaving machines or users can be identified early so that corrective actions can be taken before a catastrophic event occurs. For example, safety equipment in a manufacturing environment that requires the operator is in a certain position before a machine can operate is a key component of jobsite safety. However, the misuse or misapplication of the safety equipment can lead to higher rates of personal injury or machine damage. Connecting such safety equipment to the internet can provide insights into widespread misuse that can be turned into actionable change.
Asset downtime.
Failure prediction, which has long been possible with closed-loop systems, enables preventative maintenance to be scheduled for high-value industrial assets that can lead to reduced downtime. However, connected products and sensors can take this ability one step further, correlating equipment issues in the surrounding environment to make highly intelligent decisions to shut down critical systems or prevent costly downtime in a way that was not possible in the past.
Theft.
Connecting and monitoring mobile equipment with an enterprise IoT platform can reduce risk by alerting operators when product theft occurs in environments like construction sites or maintenance shops. Theft data can be used to identify individual offenders, understand theft rates, and identify the environments that are conducive to high rates of theft events.
Mal-usage of devices or data.
Intelligent IoT analytics based on connected devices and sensors creates a new set of possibilities to detect equipment abuse. For example, machines that are overworked often have a lower life expectancy. Garbage trucks that run non-optimal routes at certain times of the day may lead to a lower-than-average fuel economy. By remotely connecting equipment, usage patterns can be optimized to extend the life of equipment and increase operating margins in a significant way.
Consumer behavior.
In many industries, connected products can provide insight into behavior that can be factored into risk-reduction offerings. For example, by monitoring automobile driver behavior on the road, insurance agencies can offer optimized insurance policies to better compete in the marketplace. In buildings, water leak or structural damage detection provides insight into risk profiles and can ultimately lead to better insurance policies that are more relevant to consumers and more profitable for insurance companies.
Energy costs.
Connected products can monitor machines and energy consumption (e.g., gas, water, heat, electricity, solar) to detect trends that are anomalous and wasteful so action can be taken. In addition, by monitoring energy usage, machine cycles, and usage patterns, activities can be optimized to reduce energy usage and delivery comparable or better service more efficiently.
Although not exhaustive, these examples of IoT strategies prove that prove that risk can be reduced by connecting durable goods to the Internet, opening the door to better and more cost-effect decision-making capabilities through data analytics.
To learn about how to create your own IoT business model to leverage connected products, download our Monetization Strategies for Connected Products white paper:
