Part 1 of a three part series on the impact of IIoT on OEMs and their dealerships.
Remote connectivity and analytics enabled through the Industrial IoT (IIoT) offer equipment dealerships and rental companies an opportunity to grow revenues through new maintenance services. Equipment used in the construction, mining, agriculture, industrial, and transportation industries has grown increasingly complex; often incorporating mechatronics, electronics, IT, and software. This makes it challenging for the general-purpose technicians in the maintenance staff to debug and isolate equipment problems.
Unique Needs of Equipment Dealerships
Successful equipment dealerships typically listen carefully to their customer’s business needs to improve customer satisfaction and retention, and identify new sources of revenue. As these dealerships add products and services, the business has become increasingly diverse. Now, Industrial IoT (IIoT) provides two new opportunities for business growth: Product-as-a-Service and Predictive Maintenance (PdM).
IIoT Demands Excellence in Maintenance Delivery
Both Product-as-a-Service and Predictive Maintenance services drive significant expansion in dealer-provided maintenance services:
- Product-as-a-Service transforms the customer relationship from one that focuses on the initial delivery of equipment, into a results-oriented continuous service offering. With Product-as-a-Service, users are charged based on equipment output. One example would include charging for the volume of compressed air generated, rather than an up-front fee for the compressor. Since revenue occurs only when operating, the distributor or renter has a high incentive to manage and deliver maintenance that assures high equipment uptime.
- Predictive Maintenance involves using IIoT and analytics to monitor the equipment’s health – for which the distributor or renter charges a subscription fee. When the analytics trigger an alert, the distributor initiates a repair prior to failure. The distributor assumes penalties if the service level agreement (SLA) is not achieved. Again, the distributor manages and delivers maintenance to assure equipment high uptime.
These new business models dramatically increase the need for excellence in the dealership or rental company’s information management and business processes for each piece of equipment and its maintenance.