[Infographic] How the Internet of Things is Impacting Hardware Manufacturers

Posted by Technology Services Industry Association on 9/9/16 6:30 AM

In an increasingly connected world, the Internet of Things (IoT) is forcing traditional hardware manufacturers to rethink how they run their businesses. The historical make/sell/ship business model is no longer sufficient now that customers expect providers to help them save money and improve their business outcomes. To respond to changing customer demands and offset the industry-wide trend of declining product revenues, many hardware manufacturers are embracing smart, connected products to create new revenue streams. In this infographic, you'll see just how IoT is impacting hardware manufacturers and why embracing digitization is crucial to improving revenue growth in a rapidly changing technological climate.

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Topics: infographic, industrial equipment, internet of things (IoT), hardware manufacturers, equipment manufacturers, smart, connected products, smart services

How an Industrial Equipment Company Increased Gross Profit and Field Tech Utilization

Posted by Technology Services Industry Association on 8/30/16 6:30 AM

When technology companies need to grow their revenue and profits, they come to TSIA. We provide our members with the relevant industry research, business frameworks, and benchmarking they need to optimize their service businesses, overcome top challenges, and achieve their goals. To share an example of what you can accomplish with a TSIA membership, here's a case study of how we helped one of our members within the industrial equipment industry improve customer adoption of their technology with their existing field services team.

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Topics: field service engineer, adoption, field services, industrial equipment, TSIA Case Study

Latest Trends Affecting Industrial Equipment

Posted by Harald Kopp on 4/29/16 6:30 AM

It's no secret that smart, connected products have had a noticeable impact on the world we live in over the past few years, especially in the way businesses are run. As part of TSIA's research initiatives, we track the latest industry trends affecting the industrial equipment sector, which includes automation technology, instruments and components, and solution providers leveraging industrial equipment. Here's a preview of my latest findings, which I've published in my paper, " TSIA State of Services for Industrial Equipment Manufacturers 2016".
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Topics: industrial equipment, internet of things (IoT), TSIA Research, smart services

Industrial Equipment: Moving from Products to Services

Posted by Harald Kopp on 12/15/15 7:30 AM

'Tis the season of giving, and today our gift to you is the seventh day of our annual 12 Days of Insights blog series. Enjoy!

Manufacturers of industrial equipment, components, and instruments have, on average, a service revenue share of 30%, which has been stable over the last two years. This has been shown by the results of TSIA's Industrial 30 index, which analyzes the quarterly reports of 30 industrial manufacturers reporting their service revenues. 

We’ve found that the service revenue share was stable during five quarters of revenue growth, and it is still stable after two quarters of shrinking revenues of 7%, as compared to last year. This shows that a huge part of services in industrial equipment are product-attached. Fewer product sales mean fewer implementations, lower product utilization by customers means fewer repairs, and customers under pressure even reduces support levels. Some services, like calibration or mission-critical support, are stable.

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Topics: pacesetter, 12 Days of Insights, industrial equipment

Growing Customers Successfully in Industrial Equipment

Posted by Harald Kopp on 11/17/15 7:30 AM

As services eat products and software eats services, there are significant changes happening to success plays within the technology industry. The companies that will be the most successful are the ones who take an active role in supporting their customers as they grow their businesses. In fact, this was the topic of the opening keynote of our recent Technology Services World conference, presented by TSIA’s president and CEO, J.B. Wood.

During the rest of the conference, there were a lot of hot topics relevant to manufactures of industrial equipment (IE) presented in sessions, TSIA’s Industrial Equipment Advisory Board meetings, and 1:1 discussions. Based on this content and feedback from conference participants, it's clear that the business environment for industrial equipment manufacturers is changing in several big ways. 

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Topics: outcome-based services, adoption services, managed services, industrial equipment, internet of things (IoT), smart services

Adoption and Outcome Offers: An Example from Michelin

Posted by Harald Kopp on 10/15/15 6:30 AM

In my IoT blog series I wrote with Vele Galovski, we introduced the remote services continuum as a framework to help companies navigate the industry transformation through IoT/smart services and focus on customer outcomes. In this post, I’ll be using examples from Michelin to discuss how services designed to help customers maximize their usage of technical capabilities (Adoption Services) as well as services designed to deliver specific business outcomes (Outcome Services) are rapidly emerging.

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Topics: outcome-based services, adoption services, industrial equipment, internet of things (IoT), smart services

Leveraging Your Field Service Engineers to Drive Revenue

Posted by Vele Galovski and Harald Kopp on 9/22/15 6:30 AM

On the surface, smart, connected products threaten to make the need for on-site service obsolete. Embedded technologies will phone home and signal either a firmware upgrade or generate an automated service request for a customer-replaceable unit as part of an advanced exchange program. Although this is happening more and more and will undoubtedly continue in the future, hardware companies will always need a field service engineer to go on-site at a customer’s location. The question is how to best to use this tremendous organizational resource in a way that helps the company during the B4B transformation? In this final installment of our 10-part blog series about how IoT is impacting Hardware and Industrial Equipment companies, we’ll be talking about how you can leverage your field service workforce in new and exciting ways.

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Topics: field service engineer, field services, industrial equipment, internet of things (IoT), Intro to IoT, smart services

Organizational Structure and Capabilities Along the Remote Services Continuum

Posted by Vele Galovski and Harald Kopp on 9/1/15 7:04 AM

In our previous post, we stressed the importance of companies designing new service offers that are centered on driving business outcomes in order to avoid creating another complexity avalanche in the age of IoT. In this latest installment of our IoT blog series, we’ll be tackling the topics of organizational structure and smart service capabilities as industries move along the remote services continuum.

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Topics: industrial equipment, internet of things (IoT), organizational capabilities, Intro to IoT, smart services

Your Strategy for Escaping the Complexity Avalanche

Posted by Vele Galovski and Harald Kopp on 8/18/15 6:30 AM

In our previous blog post, we shared an extraordinary earnings report from GE that highlighted the revenue-generating capability of IoT by combining smart, connected products with smart services. When GE Aviation collects 5,000 data points per second from “tip to tail” sensors, the knowledge gained from analyzing the data can drive condition-based maintenance, fuel savings, and risk reduction, all of which result in greater bottom-line profitability for their customer and incremental revenue for GE.

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Topics: industrial equipment, internet of things (IoT), Intro to IoT, smart services

Breaking News of How Analytics are Enabling Services Growth

Posted by Vele Galovski and Harald Kopp on 7/24/15 6:30 AM

We interrupt our regularly scheduled IoT blog series to bring you an extraordinary earnings report from an industrial equipment company that highlights the significant role of smart, connected products and IoT in driving services growth.
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Topics: industrial equipment, internet of things (IoT), Intro to IoT, smart services

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