The second post in this series on how IoT solutions deliver value focused on improving an existing product. There are numerous ways to improve an existing product and it is generally most desirable to focus on an outcome that the end user finds most valuable.
Developing an IoT solution begins with clearly identifying the value proposition and then quantifying it with a model that demonstrates that value. The bottom-line is that the incremental value generated by an IoT product/solution must be greater than its cost.
Operating Products Better
This post will turn to the second way that IoT solutions deliver value, operating products better, and how AMS has been able to deliver that value to our customers. There can be several approaches to operating existing products better and the best approach is to focus on an outcome that delivers the greatest value and meets/exceeds your clients primary needs. The outcomes valued by an end user include:
- Increased revenue by optimizing utilization of the product
- Decreased operating expenses
- Improved monitoring and control of how the product operates or performs
- Receiving critical data on how the product is operating
In whatever way one wants to approach adding value through IoT, there are four ‘must’ steps that are critical to identifying and quantifying value and determining requirements:
- Creating the value proposition/statement
- Developing a model that demonstrates the value
- What are the operational requirements for the solution
- What are the data requirements
Let’s investigate an actual example of how an innovative IoT solution assisted an AMS customer to operate products better.
Restoration and Disaster Recovery Services and Equipment Rental
One of our customers operates a large restoration and disaster recovery service and equipment rental business. They service a broad spectrum of clients, including residential, commercial and industrial markets. They own and maintain a very large inventory of equipment to service those needs.
Traditionally, our customer relied on a rudimentary inventory control and billing system that was reactive and offered little insight into key aspects of their business, including:
- Where the equipment was located
- If the equipment was being utilized
- How the equipment was being utilized (particular emphasis on hours of operation)
The customer was also beginning to experience instances where some of their large customers, that rented a high volume of equipment on a regular basis, only wanted to pay for the equipment that they were utilizing onsite and, in some cases, only for the time that the it was utilized. Our customer was evolving to meet this demand as their end users have many other suppliers to choose from.
Our customer wanted to improve how their existing rental equipment was managed, while also providing better insight on equipment location, utilization and optimization. Their goals were to:
- Maximize revenue from their equipment
- Optimize utilization of their overall inventory and individual units
- Enhance their management of the inventory remotely
- Build the flexibility into their operating system that their customers were demanding
Together we developed a value model that would demonstrate the value that incorporating AMS’ SensAble platform with their equipment would deliver. The model needed to demonstrate:
- The investment in the hardware and monthly service costs could be justified by increased revenues and reduced expenses (managing the inventory and verifying charges)
- Ability to optimize utilization of their inventory, providing flexibility to be able to meet their current business model (fixed daily/weekly rentals) as well as the needs of customers looking for ‘as required and as used’ rental models
Our client had specific operational requirements that also needed to be incorporated, so that they could manage and operate their inventory better:
- Must be able to locate their inventory as required and as efficiently as possible
- Data on usage must be available remotely (24/7) and data was to be maintained via ‘cloud-based’ storage
- Data must be accessible on any internet enabled device
- Ability to track hours that each unit had been operating between service periods (more on this on the post: Supporting Products More Effectively)
Managing and operating the customers inventory better called for real-time data requirements that could be viewed remotely. Those data points included:
- Location of each unit
- Daily usage reports on all inventory
- Detailed reporting on specific inventory to determine the number of hours the equipment was being utilized while deployed
By clearly identifying and addressing the four steps to demonstrate value, and working closely with our customer, we were able to deliver a highly valued solution that:
- Demonstrated a suitable initial and ongoing return on investment in deploying the SensAble platform solution
- Increased revenues by consistently optimizing the deployment of their inventory, delivering
- Ability to re-deploy equipment that was not being utilized (and not being billed)
- Offer rental programs that met their customers needs, increasing utilization by those customers and enhancing the ongoing relationship
- Allowed out customer to accurately assess utilization of their inventory, helping them to reduce the inventory of equipment that was consistently being underutilized, while adding additional equipment that was in demand by their customers
Next Post: Supporting Products More Effectively
INTERESTED IN LEARNING MORE ABOUT AMS’ SENSABLE MONITORING SOLUTION?
CONTACT US TODAY
Call us at tel: 1-888-980-7229 or fill out the form below and we will contact you within one business day.