Over the last 30 years, advanced technologies like the Internet of Things (IoT) have helped manufacturing IT asset management programs soar to new heights.
In that time, the industry’s daily output has skyrocketed by more than 250% and the average employee has become 170% more productive—some subsectors have even seen labor productivity triple during this span.
Compared to the average manufacturing organization, this industry’s top three percent of revenue performers share one similarity: they make it a priority to upgrade business intelligence and IT asset management capabilities. Any time these Enterprise Technology Management (ETM) operations increase IT investments, the average revenue growth is almost twice as large as the average competitor’s payoff (and three times greater than the gains achieved by the industry’s least advanced efforts).
So, it should come as no surprise that IoT investments are being made by manufacturers at record rates. In fact, US companies could account for as many as 15% of the country’s total IoT purchases through 2020.
How are leading global IT asset management programs leveraging IoT? And, why are so many making significant investments in this technology, anyway?
Modern IT Asset Management and IoT
Believe it or not, the foundation for industrial IoT was built more than 20 years ago. Many of today’s most advanced IT asset management initiatives still leverage the Manufacturing Execution System (MES) infrastructure that’s been helping business owners manage shop floor controls for decades.
Since these existing systems make it considerably easier for manufacturers to implement IoT compared to most other industries, global organizations are some of the first to take advantage of the business benefits real-time data insights bring.
By the end of this year, 92% of manufacturers will spend more than $189 billion worldwide to implement IoT initiatives. And, while every enterprise IT asset management effort is unique, early returns suggest three primary IoT use cases:
1. Operational Tasks
IoT’s constant data feedback is having dramatic effects on manufacturer efficiency. By streamlining IT asset management, performance monitoring and planning strategies, organizations can not only optimize existing ETM opportunities, but also uncover brand-new ones that would have been impossible to identify otherwise.
2. Production and maintenance tasks
When combined with Artificial Intelligence (AI) and machine learning, IoT has the potential to monitor production rates, track inventory levels and even perform predictive maintenance functions.
3. Field service tasks
IoT also creates competitive advantages for product-oriented efforts that fall outside the traditional manufacturing environment. Remote employees can generate immediate and accurate customer pricing quotes based on global inventory levels and current raw material costs in addition to uncovering real-time market trends and behaviors.
Data-Driven IT Asset Management Progress
Beyond simple data collection improvements, IoT transforms feedback into usable, relevant and actionable insights that help manufacturers make more engaging and impactful business decisions.
In addition to the never-before-seen customer preferences and trends IoT has already delivered to 76% of early adopters, these endpoints enable enterprises to accurately evaluate the industry’s Revenue Growth Management (RGM) contributing factors. That means fully optimized revenue streams and efficiently managed sales opportunities moving forward.
But, that’s not all. Industrial IoT is actively saving manufacturers money, too. By leveraging an advanced combination of business intelligence and data analytics, this technology has made legacy IT infrastructure and traditional data centers the single largest budget cut item for 30% of the industry.
Even manufacturers that lack the internal capabilities required to manage IoT are making moves to integrate these solutions. The manufacturing industry has rapidly become a driving force for many of the world’s most ambitious IoT-focused merger and acquisition activities. Without them, these organizations will only find it increasingly troublesome to leverage legacy systems that aren’t agile or adaptable enough to handle IoT’s increased data communication workload.
While a successful IoT initiative greatly benefits manufacturing IT asset management, it’s important to consider how these technologies fit into the context of ETM and its strategic vision. A global enterprise technology partner like Tangoe ensures IT asset management success. Talk to one of our experts to find out how.