Last week, a Flexera Software Team attended the European Industry of Things World in Berlin. It was immensely interesting to discuss the physical to digital shift with some of the 900+ manufacturing industry experts. Here’s a review of the main topics we heard, the state of the marketplace and the role of Software Monetization:
- Efficiency and productivity in manufacturing processes are high up on everyone’s agenda and manufacturing companies are implementing software solutions and adapting processes with the aim to reduce waste, overproduction and downtimes. They expect efficiency gains to come from lean and streamlined production processes.
- Some manufacturers have successfully implemented new business models and moved beyond first trials. They have launched new IoT solutions including tracking and management of devices in the field, remote maintenance, services and control as well as metering and data analytics. These solutions are billed by usage or outcome and are increasing profitability by creating new revenue streams.
- Big Data and how to capture, store, analyze and leverage data was another point of discussion. Their need to create value from the huge amounts of data they are capturing drives the adoption of Cloud technology and software solutions for analytics and monitoring.
- IP Protection remains an important topic. This not only refers to the protection of devices and applications in a connected world, but also to traceability in the field as companies seek to prevent grey market abuse and stop revenue leakage.
Manufacturers that have launched their first IoT solutions are starting to get rewarded for their efforts and investments as they profit from lean production processes and new revenue streams. However, although 82% of decision makers consider IoT a strategic topic there’s still uncertainty about the economic benefit and customer acceptance and many manufacturers struggle to invest the time and bandwidth needed to build out their Industrial IoT strategy. Many leaders still see a long way ahead of them, transforming their organizations from a hardware-centric to a software-centric company culture and mindset. But all agree that companies that do not invest strategically in this topic in the short term will lose competitive advantage on the long run.
How can Software Monetizaton help?
The above graphic summarizes the Flexera Software presentation. Software and software-enabled processes are crucial for every IoT strategy. Here are some of the examples provided by Matthew Dunkley’s Industry of Things World session:
- Standardizing hardware and configuring devices electronically simplifies production processes and increases productivity
- Protecting and monetizing with software licensing and security enables traceability and prevents grey market abuse
- Managing the digital lifecycle and providing end-to-end processes for the entire digital supply chain improves customer satisfaction and automates business-critical processes around the delivery of software and firmware updates and patches
- Productivity gains can be derived from virtualization of device functionality and high-performance computing as well as software-driven processes for rebalancing on the production line.
A purpose-built Software Monetization platform enables rapid adoption of new licensing models like subscriptions, pay-per-use and pay-per-outcome. It empowers manufacturers to efficiently manage customer entitlements and deepens the customer relationship by providing a unified and positive end user experience.
Want more on that topic?
- Watch this video and see how Software Monetization can support the transition from a hardware-centric to a software-centric business model
- Read the Research Report from IDC: Applications and Business Model Innovation Enable Digital Transformation for Product Companies
 According to IDC’s Internet of Things Web Conference: New Worldwide Demand Side Research on Perceptions and Plans for Adoption 2015