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The Internet of Things (IoT) A Manufacturers Value Creation Opportunity

The Internet of Things (IoT) refers to uniquely identifiable objects and their virtual representations in an Internet-like structure. The term Internet of Things was proposed by Kevin Ashton in 1999 though the concept has been discussed since at least 1991. Wikipedia Definition

 

 

Time for Manufacturers to Rethink

The number of ‘things’ connected to the Internet is now higher than the total number of humans on earth, and this figure is expected to rise to as many as 50 billion connected devices by the end of the decade. From a manufacturers’ point of view, the implications of this emerging “Internet of Things” are enormous.

According to a recent McKinsey Global Institute report, the Internet of Things (IoT) has the potential to unleash as much as $6.2 trillion (approximately £3.7 trillion) in new global economic value annually by 2025. The firm also projects that 80 to 100 percent of all manufacturers will be using IoT applications by then, leading to potential economic impact of as much as $2.3 trillion (approximately £1.4 trillion) for the global manufacturing industry alone.

The meteoric rise of the IoT has been largely driven by the convergence of market forces and parallel innovation of enabling technologies. As these products have evolved, their capabilities have expanded, creating new forms of value and often doing things well beyond their primary function. This transformation is shifting the sources of value and differentiation to software, the cloud, and service, and spawning entirely new business models.

To capture this great wave of value creation opportunity, manufacturers have an urgent need to rethink nearly everything — from how products are created, operated, and serviced. Those who don’t, place their current competitive advantage at risk.

 

PTC Advantage

thingworx-logo.jpgIn the IoT era, PTC's customers are bringing to market increasingly smart and connected products which generate new sources of value for customers and manufacturers as streams of data are captured, analyzed, and shared in real-time.

PTC’s strategy and technology enabled solutions transform the way smart, connected products are created, operated and serviced. Application Lifecycle Management (ALM) solutions help companies to manage the development of all software that goes into and along with the smart product. Product Lifecycle Management (PLM) solutions helps companies manage the entire definition of the product, mechanical, electronic, and software, that fit together in increasingly complex configurations and undergo continuous change. Service Lifecycle Management (SLM) solutions help companies manage and optimize the increasingly important processes that happen after the product is delivered to the customer through an ongoing service relationship.

PTC’s recent acquisition of the ThingWorx platform will speed the creation of high value IoT applications that support manufacturers' strategies, such as predictive maintenance and system monitoring, and enhance PTC's existing service ALM, PLM and SLM solution portfolio. PTC will also now offer its customers a means to establish a secure, reliable connection to their products as well as a platform to rapidly develop applications for maintaining and operating them - and ultimately for finding ways to create new value from them.

 

How a world of smart, connected products is transforming manufacturers

eBook: How a world of smart, connected products is transforming manufacturers

 

Download the eBook

download this pdf eBook: IoT: How a world of smart, connected products is transforming manufacturers (940 KB)

 

Further Information

McKinsey Global Institute report
The Economist Magazine - It's a smart world
download this pdf The IoT - How the Next Evolution of the Internet Is Changing Everything (Cisco White Paper) (2.68 MB)
download this pdf Industrial Internet: Pushing the Boundaries of Minds & Machines (2.29 MB)

 

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