INDUSTRY INSIGHTS
How manufacturers Today, new technologies are connecting the manufacturer directly to their operations and their customers like never before. With historical data as a foundation, manufacturers can fulfill a promise to end customers. They can track inventory anywhere in the supply chain as well as track and forecast delivery dates of raw materials as well as accurately forecast manufacture dates. Kevin Dherman, chief innovation officer at SYSPRO, explains how manufacturers can commercialise data.
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he rise of digitalisation and automation in manufacturing is resulting in the generation of a colossal volume of data. Previously, businesses would gather data (often manually) across the business and try to draw a meaningful conclusion from any further examination. The challenge was that a good data conversion seldomly made an impact across the value chain. One way in which manufacturers are collating data at the edge is through the Internet of Things or a network of interconnected sensors, instruments and other devices. Businesses are then able to access a single source of truth through their ERP system and use data insights to facilitate the improvement of productivity and efficiency. While data insights are clearly the route to improved operational efficiencies, the industry is also asking whether there is
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an opportunity to generate new revenue streams through data monetization and the re-exploration of business models.
DEFINING DATA MONETIZATION Gartner defines data monetisation as the process of using data to obtain quantifiable economic benefit. Internal or indirect methods include using data to make measurable business performance improvements and inform decisions. External or direct methods include data sharing to gain beneficial terms or conditions from business partners, information bartering, or offering information products and services (for example, including information as a valueadded component of an existing offering). Gartner goes on to say that businesses use information as an asset and create new services or enter new business models.
INDUSTRIAL BUYER SEPTEMBER/OCTOBER 2021
There are a few ways that manufacturers can monetise data.
BLURRING THE DISTINCTION BETWEEN PRODUCTS AND SERVICES Some manufacturers are seeing the benefits of not only selling a product, but also offering a post-sales service through a ‘pay and use model’. Take for example a traditional refrigerator manufacturer. Imagine if they were to attach an IoT sensor to each of their appliances to monitor up-time and the product’s average temperature and humidity on the customers’ premises. As soon as any of these factors drop below a certain threshold, the device could send a message via the ERP system, which could in turn create a ticket and notify a technician that they need to address the issue
