This blog offers a glimpse into our recently published IDC Planscape: Transforming Service Through Connected Products, a report that includes a decision-making tool for IT professionals to support transforming service through connected products.
The rise of IoT has brought with it an increased focus on "connected products," which IDC Manufacturing Insights defines as physical products that contain software, sensors, and IP-enabled connectivity. Our research has identified some of the key technologies that enable connected products in manufacturing (visit the blog) along with some of the common use cases and challenges for connected products (Doc # MI254640). Along the way, we've participated in numerous discussions around how connected products are transforming the way manufacturers deliver and monetize after-sales services.
Service organizations are finding themselves in the spotlight more and more, as manufacturers search high and low for new ways to improve margins, grow revenues, and increase profits. We have seen some excellent examples of companies that are driving new service models with connected products. These manufacturers are setting the bar for connected service and its potential. But, we also hear from service organizations the difficulty in getting a connected service initiative off the ground, because it requires more than the service department to participate, fund, and support the project.
In an effort to help our manufacturing clients understand the opportunities that connected services present as well as where to begin transforming after-sales offerings through connected products, we developed the IDC Planscape: Transforming Service Through Connected Products. In the report, we provide answers to the following questions:
- Why do connected products offer service organizations a transformative opportunity to shift revenue growth toward after-sales processes while meeting increasing customer expectations for exceptional service?
- What is connected service and what are the key use cases for after-sales service transformation?
- Who are the key stakeholders that should be involved in connected service initiatives? What are their roles and responsibilities for promoting successful service-based projects?
- How can IT and non-IT manufacturing leaders help accelerate investment in service through connected products for their organization?
The time for action is now with regards to connected service. The technology to support transformational after-sales services has matured enough to sustain the operational rigors of many manufacturing after-sales environments. While maturity will continue, and the industry groups will codify standards, there is sufficient critical mass around connected product and connected service technology today. We urge service organizations to closely evaluate the role connected service should play in their aftermarket portfolio.
Up next will be an IDC PeerScape that identifies five of the best practices manufacturers have utilized to launch connected service initiatives. This, along with the recently published PlanScape, can help manufacturers make progress in using connected service. Stay tuned and please share your successes and challenges with implementing connected services!