1

Impacts of smart, connected products to Companies and their competitiveness

Student Name

University

Course

Professor Name

Date
 2

Impacts of smart, connected products to Companies and their competitiveness

Physical components, "smart," and connectivity components are the three main components of

smart, linked products. While connectivity enhances the value and capabilities of the smart

components and makes it possible for some of them to exist outside the physical product itself,

smart components enhance the capabilities and value of the physical components. The outcome

is an upward spiral of value growth. The product's mechanical and electrical components are

called physical components. These include the engine block, tires, and batteries of an

automobile, for instance.

The sensors, microprocessors, data storage, software, controls, and, often, an embedded

operating system and improved user interface are considered smart components. For instance,

smart car parts like the engine control unit, antilock brakes, rain-sensing windshields with

automatic wipers, and touch screen displays. In many products, software takes the role of some

hardware parts or allows a single physical device to operate at several levels.

Monitoring, control, optimization, and autonomy are four categories of product functions and

capabilities that can be made possible through intelligence and connectivity. The exhibit

"Capabilities of Smart, Connected Products" shows how a product might include all four. Each

capacity has value in and of itself and serves as a springboard for the next. The basis for product

control, optimization, and autonomy, for instance, is monitoring capabilities. A business must

decide which set of competencies will give value to its customers and determine its competitive

positioning. Companies and the competitive landscape are being fundamentally altered by the

transformation of products into intelligent, connected gadgets that are increasingly incorporated

in larger networks.
 3

Automation of Products

Quicker and More Efficient Product Development

Manufacturers can update their products, fix issues, and rethink functionality since they

can continuously monitor products in use. This increases customer satisfaction. Future product

features and the creation of new items can be influenced by the intelligence from smart, linked

products. Automatic app updates on our phones that give us access to new features or remotely

resolve issues are something that we are all familiar with. The same is true for smart, linked

products that may update themselves (Porter & Heppelmann., 2015). For instance, Diebold uses

software to remotely update and add new features to its smart, linked ATMs. 0 Due to its

knowledge of how its customers use the fitness band, Fitbit has been able to increase the creation

of new products, which can take the shape of either hardware or software.
 4

Cheaper and More Effective Upkeep and Repair.

Because linked, smart products can be monitored in the field, the maintenance and repair

process can be greatly streamlined using that data (Porter & Heppelmann., 2015). Using onboard

sensors and real-time satellite feeds, Rolls Royce monitors the condition of thousands of aircraft

engines that are in operation across the world. With the help of its Engine Health Management

system, airlines may have their service professionals prepared with the appropriate part to

conduct repairs when a plane lands, reducing downtime. It can also relay data on an engine

problem.

Automation of Currently Produced Items.

Smart, connected items may now operate with an unprecedented level of autonomy

thanks to the combination of monitoring, control, and optimization capabilities (Porter &

Heppelmann., 2015). The iRobot Roomba, a vacuum cleaner that combines sensors and software

to scan and clean floors in rooms with varying layouts, is an example of an autonomous product

operating at its most basic level. More advanced products have the capacity to learn about their

surroundings, identify their own service requirements, and adjust to consumer preferences

(Porter & Heppelmann., 2015). In addition to reducing the need for operators, autonomy can

increase security in risky situations and ease operation in far-off places. Additionally,

autonomous products have the ability to collaborate with other systems and products. As more

and more items become connected, the value of these capabilities has the potential to increase

tremendously. The energy effectiveness, for instance.

 5

Integration of Information Technology in Production and Consumption

Optimization of Product Performance

With the ability to regulate product operation and access to a wealth of monitoring data, smart, c

onnected items enable businesses to enhance product performance in a variety of ways that were 

previously impossible,

algorithms and analytics can be applied to data that is currently in use or historical data to signifi

cantly increase output, utilization, and efficiency in smart, connected products (Porter &

Heppelmann.,2015). For example, a local microcontroller in a wind turbine can modify each blad

e during each revolution to maximize wind energy. 

Additionally, each turbine can be modified to both maximize its performance and reduce its nega

tive effects on the efficiency of those close (Porter & Heppelmann., 2014). Companies can

improve service by doing preventative maintenance when a failure is about to occur and

completing repairs remotely, eliminating product downtime and the need to send out repair

workers, thanks to real-time monitoring data on product status and product control capability.

Even when on-site repair is necessary, knowing what is broken, what components are required,

and how to fix it beforehand lowers service costs and raises the success rate of first-time fixes.

For instance, Diebold keeps an eye on numerous of its automated teller machines for any

warning indicators of danger (Porter & Heppelmann., 2014). After evaluating the condition of an

ATM that isn't working properly, the corporation either tries to fix the device remotely or sends

out a professional who has been provided a thorough diagnostic of the issue, a suggested course

of action, and frequently the required parts. Lastly, like many intelligent, Diebold's ATMs can be
 6

upgraded when it's time for feature upgrades, much like many other smart, linked goods. These

frequently take place remotely using software

Better and Newer Business Models

Numerous industrial producers are reinventing themselves,providing services by developi

ng new business lines basedon the examination of data from smart product,in the case of

released its Brilliant Manufacturing software, for instance.utilizing real-time insight into linked, s

martequipments to assist clients in maintaining their equipment dependingbased on operational c

ircumstances (rather than a breakdown), thereforeenhancing efficiency.In fact, some businessesc

onsider it advantageous to change their business methods from sellingthings to providing service

s and renting out goods.Michelin,has, for instance, released a smart, connectedhybrid tire made o

f both goods and services (Porter & Heppelmann.,

2015). Fleet clientsenroll in and pay for their specialized tire leasing schemes.by the mile for its 

use, and Michelin is in charge of anyeither upkeep or repair.

Other businesses or organizations may find value in the information that manufacturers collect

from their smart, connected gadgets and pay for it. Retailers or dentists, for instance, might buy

analysis of P&G's Oral-B Genius data to help them manage their own companies more

effectively (Porter & Heppelmann., 2015). Or, think of the chance a carmaker has to provide

motorists with important information via an in-car infotainment system, such the location of a

parking lot or an upcoming event. The manufacturer turns become a conduit for other companies'

marketing messages to potential buyers.

 7

Incoperation of Diverse Aspects Internet of Things to Foster Quality User Experience

Better Product Use.

Customers can receive intelligence and direction from a smart, connected product to

improve their use of it or their level of engagement with the brand. One example is Progressive

Insurance, which provides a usage-based auto insurance plan based on sensors and monitoring

from in-car telematics (Porter & Heppelmann., 2015). Customers can now download a mobile

app from the company that, at the conclusion of each trip, provides drivers with individualized

data, such as a one- to five-star rating, a data summary, a map of their route, and targeted driving

suggestions, to help them score.

Better Procedures for Product Recall.

Poorly managed product dangers and flaws may cost brands a ton of money, not just in

direct expenses. However, reputational harm, as seen by events like the massive and growing

airbag recall by Takata that motivated sit declaring bankruptcy24 and Samsung's recall of the

Galaxy Note 7which ran the business a $5.3 billion loss.25 Using sensing, connectivity, as well

as the capacity to recognize a client's

 8

Conclusion

Integration of information technology is transforming the running of business activities,

from collection of data of a certain product. to analyzing and finally to execution of the

information extracted from the data analysis. Automation is also enhanced through information

and technology where data is collected, stored and also disseminated easily to and from the

market of a specific product. Smart and connected products are achieved when all aspects of

Information of Things are incorporated on one product to arrive at a specific goal either passing

information to the user on how the product is used or passing the user experience from the

immediate user to the manufacturer, all this in quest to enhance excellent service delivery to the

end user.
 9

References

Porter, M. E., & Heppelmann, J. E. (2014). How smart, connected products are

transforming competition. Harvard business review, 92(11), 64-88.

Porter, M. E., & Heppelmann, J. E. (2015). How smart, connected products are

transforming companies. Harvard business review, 93(10), 96-114