There are a lot of tires on an 18-wheeler. Big ones, too. Monitoring their wear and tear, having them aintained and replaced is a big job for trucking
What if the trucker could offload all of that concern to
the tire manufacturer? The tires, outfitted
with tiny sensors, automatically monitor
themselves, relaying the state of their
condition back to the manufacturer in real
time. The manufacturer, aware of the con-
dition of every tire in the trucker’s fleet,
schedules replacement and maintenance
at regular intervals.
For the trucker, mileage is increased.
Safety is improved. Liability is reduced.
And processes for maintaining potentially thousands of tires are streamlined
or eliminated. The manufacturer, meanwhile, takes on the work, the risk — and
the reward. Instead of just selling tires,
they’re now selling miles.
This is just one example of how data can transform a
manufacturer’s business model. The technology market-
place is full of buzz today about big data and the Internet
of Things, but the fact is, today’s more powerful sensors
and devices, connected to back-end systems, analytics
software and the cloud, are transforming industries —
right now. With the rise of these connected operations,
manufacturing executives are not only finding new ways
to automate and create efficiency, they are also focusing
on a big new opportunity for revenue growth: services.
This is no passing trend. According to recent research
by IDC, commissioned by Microsoft, manufacturers stand
to gain $371 billion in value from data over the next four
years, using it not only to increase productivity and cut
the fat out of processes, but to better manage customer
relationships and improve their products and services.
In the U.S., President Obama recently announced a $140
million federal commitment to support two new institutes
as they help companies tap into this growing “data dividend.” One of them is DMDI, or digital manufacturing and
design innovation. In Germany, Europe’s longtime center
for manufacturing, they’re calling it Industrie 4.0 — no less
than the fourth industrial revolution.
Tap Into the Data Dividend
to Compete in the Age of IoT
Efficiencies and new service opportunities are
becoming too great for manufacturers to ignore.
By Sanjay Ravi, Microsoft