The Role of IoT Solutions in OEM Digital Transformation
IoT has opened new opportunities for traditional OEMs in the digital era. The Internet of Things has encouraged even traditionally tech-averse industries such as the furniture and home equipment sector to reap the benefits of the advances in technology. For OEMs, IoT opened new possibilities and ideas for what their products could now do. Even a simple tabletop could now host wireless charging pads and occupancy sensors.
In this article, we’re examining how OEMs are adopting the digital era through IoT, exploring their benefits, and addressing the challenges they encounter. Discover how OEM IoT solutions can revolutionize your business.
The State of IoT among OEMs
The past decade has marked a significant transformation, with OEMs transitioning from producing ‘dumb’ products to intelligent, connected devices. The integration of digital assistants like Google Assistant and Amazon Alexa into consumer electronics is a prime example.
The industrial IoT (IIoT) sector has also experienced exponential growth. The market, valued at $263 billion in 2021, is projected to soar to $1.11 trillion by 2028. Key trends in IIoT include:
- IoT remote monitoring for predictive maintenance
- IoT data integration to optimize productivity and efficiency
- IoT device management for enhanced asset utilization
Industry giants like Hitachi, Siemens, and Bosch have adopted IoT analytics to extract valuable insights from operational data.
Beyond product development, OEMs are leveraging IoT to streamline internal operations. IoT implementation in manufacturing plants has led to improved predictive maintenance and increased automation.
How can OEMs benefit from IoT solutions?
The Internet of Things presents numerous opportunities for original equipment manufacturers. Here are some of the key benefits of IoT solutions from an OEM’s perspective:
Enhancing Product Value: How IoT Drives Innovation for OEMs?
With the Internet of Things, OEMs can add more functionality to their products. As discussed earlier, you can add more features to something as simple as a tabletop. They can create better products from common household products like charging strips and air conditioners to industrial products like drills and assembly equipment.
Delivering Exceptional Customer Experiences Through IoT
Connected products offer an enhanced experience for customers. These products and solutions allow customers — both private individuals and enterprises — access previously unavailable data. For instance, smart wearables allow individuals to be more mindful of their health. For enterprise customers, smart equipment helps them keep track of their productivity, and energy consumption, reduce unplanned downtimes, and better plan their maintenance.
Besides this, smart devices allow OEMs to remotely troubleshoot issues with their products. If a piece of equipment started malfunctioning, customers won’t have to wait for a technician; they can just connect to the OEM and diagnose the problem.
Gaining a Competitive Advantage with IoT for OEMs
Custom IoT solutions help original equipment manufacturers gain an edge over their competition. OEMs can offer products with higher functionality and at the same time gain better margins through smart manufacturing techniques.
OEMs can also leverage the data from smart devices to better understand their customers and their pain points and build improved solutions.
Expanding Revenue Streams: IoT as a Profit Multiplier for OEMs
From an OEM’s perspective, one of the exciting aspects of producing IoT solutions is that the revenue doesn’t stop at sales. IoT products offer an interesting take on the printer cartridge pricing model where OEMs can continue generating revenue even after sales.
For instance, for enterprise systems, OEMs can offer automated monitoring for customer devices. They can offer the associated software or industrial IoT analytics solutions with their products as a subscription service to their customers. OEMs can also offer cloud-based analytics solutions along with their IoT products.
These trends can be observed in consumer IoT products as well.
What are the challenges of incorporating IoT into an OEM’s operations?
While there are benefits to incorporating the Internet of Things, there are significant challenges as well. Here are some of them.
IoT Talent Gap: A Major Challenge for Traditional OEMs
Lack of the required talent is one of the biggest challenges that traditional OEMs are facing as they step into IoT. Many industries often relied on third-party components to build their solutions, which meant they didn’t have many in-house experts with a complete picture of the technology they were offering to their customers.
But the good news is that IoT consultants like Bridgera, who have the necessary experience understanding both OEM and end-user pain points, can bridge this gap.
Legacy Systems and Processes: IoT Integration Obstacles for OEMs
Many OEMs use legacy or outdated systems in their processes. These systems may not be compatible with modern architectures and OEMs may find IoT integration challenging with these systems.
Organizations that traditionally have not incorporated electronics into their product line may also have to rethink and restructure their processes. They’ll have to bring in new talent with the right expertise and adjust their processes for managing vendors, ensuring quality, and building robust products.
IoT Security: Protecting OEMs and Customers from Cyber Threats
Without the proper expertise, IoT solutions can leave OEMs and their customers vulnerable to security threats. The last decade has seen many organizations targeted by bad actors through their IoT systems.
To build secure products, OEMs must rethink their traditional product lifecycles. After-sales, maintenance, and support will have to include regular security updates and patches. OEMs should build systems to keep track of vulnerabilities, develop and test updates, and roll them out with minimal downtime for their products and solutions.
Bridgera is a leading IoT development company specializing in custom IoT solutions for OEMs. We’ve collaborated with OEMs worldwide to build connected products and establish new revenue streams. Our proficiency in the latest IoT solutions, coupled with our cutting-edge IoT platform, positions us uniquely to comprehend and address customer challenges effectively. By partnering with Bridgera, you gain access to a robust IoT ecosystem designed to drive your business forward.
Let’s collaborate to maximize the potential of IoT for your OEM. Contact us today to initiate your IoT transformation journey.
About Bridgera: Bridgera effortlessly combines innovation and expertise to deliver cutting-edge solutions using connected intelligence. We engineer experiences that go beyond expectations, equipping our clients with the tools they need to excel in an increasingly interconnected world. Since our establishment in 2015, Bridgera, headquartered in Raleigh, NC, has specialized in crafting and managing tailored SaaS solutions for web, mobile, and IoT applications across North America.
About Author: Joydeep Misra is the Senior Vice President of Technology at Bridgera LLC, specializing in IoT and SaaS. He played a pivotal role in establishing and leading Bridgera’s IoT division, showcasing a dedication to innovation and excellence in the tech field. Additionally, he is an accomplished author and sought-after public speaker.
