OEMs are under pressure from their customers and upper management to maximize efficiency and output while also cutting costs. In today’s competitive OEM market, constant innovation with the help of IoT technology deployment is a sure way to remain relevant, maintain operational efficiency, and increase profitability.
In fact, 50% of stakeholders agree that cost saving is the primary advantage of IoT deployment in businesses today. However, unlocking the full power of IoT solutions requires a strategic and thorough approach. Here are our top 5 tips for OEM leaders to maximize ROI and save costs through IoT solutions.
1: Define Clear Objectives and KPIs
Before getting into your IoT implementation, get clear on your objectives. What do you hope to achieve through your IoT solutions provider?
This could be a range of objectives like maximizing operational efficiency, reducing downtime, improving product quality, or improving your data analytics capability. The top 5 metrics used by businesses to measure the success of IoT products include:
- Operational efficiencies
- Safety improvements
- Improved customer satisfaction
- Positive environmental impact
- Increased revenue
Once you’ve got clear objectives, the next step is to establish the right Key Performance Indicators (KPIs) to evaluate your progress. So, choose KPIs that fully align with your overall goals.
For example, if your goal is to improve operational efficiency, you’ll need to track metrics like maintenance costs, production efficiency, and energy consumption.
2: Choose the Right IoT Solutions and Providers
Partnering with the right IoT solutions provider is crucial to ensure continued success. Look for vendors with expertise and a proven track record in the OEM segment to ensure customized solutions that meet your requirements.
The right IoT solutions provider will help you maximize your ROI on IoT projects by:
- Determining the time-to-market duration of your IoT project
- Acting as a catalyst for predictive maintenance
- Scaling up your IoT platform
- Seamless integration with your existing IT platforms
Bridgera offers all this and more with our white-label solutions and years of experience in problem-solving in the OEM industry.
3: Optimize Deployment for Cost Efficiency
Cost efficiency is and should be one of the top priorities for the OEM industry. A 2023 study found that OEM time to market for connected products saw a sharp increase of 80% in just three years! An OEM company takes 41 months on average to get to the first customer after the project kick-off!
So, partnering with an experienced provider is key. In addition, ensure you leverage all your existing resources and infrastructure to reduce costs and minimize disruption. Carefully plan each step of your IoT deployment strategy with your IoT services provider to maximize your ROI and make a seamless transition.
4: Leverage Data for Continuous Improvement
One of the biggest advantages of IoT-connected devices with AI-driven data analytics is the ability to gain real-time insights into the performance of each machine. Once your systems have gathered sufficient data, leverage the power of machine learning to gather valuable insights based on live data.
For example, Bridgera’s IoT solution can help you identify potential equipment failures before they happen. The right technician is alerted at the right time to prevent unplanned downtimes. All these add up in the long run to maximize your ROI. Further, you’ll create a feedback loop, where these processes are fine-tuned and optimized to get you perfect results each time.
5. Invest in Device Lifecycle Management
Finally, don’t underestimate the importance of investing in device lifecycle management (DLM) as it can significantly affect your ROI. How?
Effective device lifecycle management can show you cost-saving opportunities, provide enhanced security measures, and improve efficiency. Calculating the Total Cost of Ownership (TCO) can greatly help you analyze whether your IoT solutions can maximize ROI in the long run.
Implement best practices for DLM like regular maintenance checks or leveraging predictive maintenance solutions to ensure efficient use of resources.
How to Successfully Handle Uncertainty in ROI Calculations?
Now that you’ve got an overview of the strategies to maximize ROI, what do you do to handle elevated levels of uncertainty in ROI calculations, as many OEMs do today?
We’ve got you covered with a bonus tip.
We always build in a small level of uncertainty into ROI calculations primarily because new technologies and their evolution are hard to predict. Your data will reflect only the past, not the future. So, realistic ROI calculations rarely lead to a single, straightforward number. Rather, use a range of possibilities and likely outcomes to get a realistic picture. Use statistical simulation techniques to produce several uncertainty ranges based on relevant parameters.
If you can handle uncertainty ranges, it will boost your credibility in the long run. Finally, remember that your IoT solution transition will keep you relevant in Industry 4.0 and will help you capitalize on your initial investments by leveraging future innovations as well.
Find the right team to guide your end-to-end IoT implementation process
Even when the OEM industry is rapidly transitioning to IoT-enabled platforms, don’t forget to implement these simple tips to maximize your ROI and improve customer satisfaction.
At Bridgera, we provide customized white-label solutions for OEMs with just two weeks to market. Over time, our predictive maintenance can help you maximize ROI.
Get in touch with one of our experienced IoT implementation specialists for more information on how we can customize solutions for you.
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: Krishna Varma is a writer and researcher, who enjoys writing about technology, IoT, and lifestyle. When she isn’t writing and reading, you’ll find her relaxing with a quiet cup of tea over the weekends.