Why Should Manufacturer Provide Smart Product Abd Essay Example
Why should manufacturing companies build smart products and provide smart services? What business benefits can they gain? Provide several examples beyond those discussed in this case. Manufacturing companies should build smart products and provides smart services are to enjoy long-term profits. It is because any industrial manufacturer that has not awakened to the fact that it must become a service business is in serious peril today.
Sadly, there are many such businesses—companies that still think of themselves as builders of things and that state their gross margins, operating profits, and other measures of success solely in terms of “the product. ” But even their more enlightened competitors, the ones who’ve begun to wrap valuable services around their products and, in some cases, profit directly from those services, are enjoying only a temporary advantage.
...They may be improving their customer relationships by taking on various burdens such as maintenance and replenishment of supplies, but that will get them only so far. A select group of companies is already upping the ante. Soon, it will not be enough for a company to offer services; it will have to provide “smart services. ” Furthermore, Manufacturing companies should build smart products and provides smart services are to Do What Human Cannot Do.
Because it is impractical to deploy humans to gather and analyze the real-time field data required, smart services depend on “machine intelligence. ” In a smart services environment, reliable and blindingly fast microprocessors do what they are very good at doing: digesting billions of data points, talking to one another about the data, controlling one another based upon the state of the data—all in a matter
of nanoseconds. Humans cannot do this, nor should they; this incessant stream of business information should be invisible to people.
At the same time, all this background activity gives managers and decision makers much more visibility into a business’s assets, costs, and liabilities—precisely when they need or want it. In business, “Smart” means solving problems fast and efficiently. For manufacturing companies, decreasing the cost, increasing the profit and expanding the market are the benefits they can obtain.
If manufacturing companies can develop smart products or smart services, they can gain those benefits.
In the paragraph, it said maintenance is one of the key elements in the life cycle of a product. The function, efficiency, reliability and permanence will also be the other key components to affect the market. The more functions a product has, the higher price will be sold. If a product can enhance the reliability and permanence, both customers and companies can diminish the cost when they try to fix the products.
The other important thing for a product is operating efficiently. High compatibility not only create high value added product but also raise the efficiency.
Combining above can build a brand image and expand the market. Thus, a company can reach the terminal goal of the business and gain the benefit.
What information technologies are used by the companies in this case to build smart products and provide smart services? What other IT components might be used? Give examples of the capabilities they would provide. What are some limitations of a smart products and smart services strategy? Give several examples of challenges that a business might encounter, and explain how it might overcome them.
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