Executive Briefings

Internet of Things Transforms After-sales Service, Report Says

The rise of the Internet of Things (IoT) has brought with it increased focus on "connected products." As manufacturers work to retrofit existing products with connectivity and build it into new products, they are faced with the question of how these connected products will transform the after-sales services they provide, and possibly even their business models.

Leading manufacturers have seen the potential that after-sales service revenue holds with some collecting up to 50 percent of their profits from after-sales sources, according to Transformation Service Through Connected Products, a report from IDC Manufacturing Insights. This trend will continue, as it is estimated that by 2020 onboard service revenue will outpace product-related revenue by a factor of two. Service through connected products is a cornerstone of growing revenues for many manufacturers in the coming years.

The new IDC report offers practical guidance to non-IT and IT leaders at manufacturers, helping them to understand the critical role of connected products in after-sales services and answering the following key 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?

"Providing value-added services through connected products is going to be a primary source of revenue growth for manufacturing companies across many industries in the years to come," said Heather Ashton, research manager for IDC Manufacturing Insights.

"We expect to see a considerable rise in connected service offerings in the coming years, moving from remote monitoring to predictive and eventually prescriptive services that keep products up and running with minimal interruption," Ashton said. "And, across every industry sector within manufacturing, there will be leaders who create disruptive product-service systems that re-define how products and services are delivered and monetized."

Source: IDC Manufacturing Insights

Leading manufacturers have seen the potential that after-sales service revenue holds with some collecting up to 50 percent of their profits from after-sales sources, according to Transformation Service Through Connected Products, a report from IDC Manufacturing Insights. This trend will continue, as it is estimated that by 2020 onboard service revenue will outpace product-related revenue by a factor of two. Service through connected products is a cornerstone of growing revenues for many manufacturers in the coming years.

The new IDC report offers practical guidance to non-IT and IT leaders at manufacturers, helping them to understand the critical role of connected products in after-sales services and answering the following key 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?

"Providing value-added services through connected products is going to be a primary source of revenue growth for manufacturing companies across many industries in the years to come," said Heather Ashton, research manager for IDC Manufacturing Insights.

"We expect to see a considerable rise in connected service offerings in the coming years, moving from remote monitoring to predictive and eventually prescriptive services that keep products up and running with minimal interruption," Ashton said. "And, across every industry sector within manufacturing, there will be leaders who create disruptive product-service systems that re-define how products and services are delivered and monetized."

Source: IDC Manufacturing Insights