delighted when they received replacement
units to resolve the issue without even requesting one. In addition, the company has
been able to successfully identify new product opportunities based on the data highlighting how their products are being used.
For many companies, making this transition from a single pillar to a multi-pillar
approach can be challenging as most of
the connectivity or transformational projects are funded by a particular pillar with
specific pillar objectives. That is the reason
more and more companies are now seeing
the value in business transformation initiatives such as Industry 4.0 or digital transformation that look across business pillars
to transform the business. Hiring digital
transformation officers and running enterprise transformation projects are helping
companies take a more holistic approach in
providing additional benefits to their bottom lines.
Taking this to the next level is an innovative 3D printer manufacturer that no
longer even sells its printers, preferring to
offer them only as products as a service.
Constant monitoring has allowed them
to provide a much better customer experience by being more proactive in identifying
and resolving issues. In fact, most service
calls are now proactive where the customer may not have even yet recognized that
there might be an issue. Connectivity has
improved the materials replenishment processes and provides a better experience for
Most importantly, this connectivity also
allows the company to understand how its
printers are being used, providing strong
feedback loops that help it further improve
products and services. This provides a better
experience for customers, too, creating a true
win-win situation for both buyer and seller.
Soft ware-Enabled Innovation
It is estimated that automobiles now come with over 100 million lines of computer code. Compare this to the
estimated 400,000 lines of code used in the
space shuttle. This is a reflection of how automobile manufacturers are increasingly
using software to differentiate and innovate
their products. They are becoming much
more successful at improving the overall
user experience with software alone.
More and more frequently, software is
becoming the differentiator for many of
the products that we use. What is different
now, though, is being able to quickly understand how customers are using the products
-- how to identify outstanding issues and
how quickly those issues can be resolved.
When we update our smartphone, computer, or watch, we have come to expect issues
to be resolved and new features to be added.
However, when Tesla offered semi-autono-mous driving through a software upgrade,
this completely changed our thinking of
how innovation can be delivered to automobiles or other complex products.
Just as important is the ability to quickly
resolve issues with software alone, which
also underscores the importance of a digital
thread between products and engineering,
that otherwise might have involved costly
physical recalls. As an example, when Tesla
received a negative Consumer Report’s review because of the brake performance on
the Tesla 3, this could have wreaked havoc
on the reputation and sales performance of
the vehicle. Instead, a week after the rating
was published, Tesla was able to provide an
over-the-air update that reduced the braking distance by 20 feet, earning a recommended rating for the Tesla 3. Solving the
issue with software alone reduced the time
to resolution and prevented the need for the
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efits can come
from Io T
when it goes