We spend a lot of time explaining technologies and enablers, but we recognize that we also need to spend time on the drivers for IoT – and you might recognize yourself or your company in some of them.
Before you even started (or start) thinking about IoT there had to be a reason why you were going to do this – a driver towards change. So, in this post let’s go back in time to the original use case, the classic one that is still valid today: Monitoring & Tracking
A key driver to this use case is the KPI that everyone runs to when things are getting rough: cost. Cost is beautiful in the sense that when you need clarity, when revenue is going down, when the cost of labor is increasing it is the mother of KPIs, the one that your CFO will start looking into right away. And boy do they love cutting costs! They will start with asking questions like:
- Why are the maintenance costs increasing?
- Why are the FTEs (full time employees) increasing over budget?
- Why are we replenishing assets faster than planned?
In response to these questions the COO and the operations team go into problem-solving mode, the natural state for the engineers and technicians, who are often the backbone of the organization.
They see that the reason the maintenance costs are increasing is because their devices and machines break down faster than expected, and it probably happens in a drastic way. Machines wear down differently depending on factors like usage patterns in the environment they are placed in. By default, most companies follow a standard OEM protocol when things are due for service, often following time intervals. Accelerated wear and tear means that when one thing breaks there may be a domino effect, with other things also breaking in the machine. This requires more people and time for repairs, and even new machines to replace because the broken ones not worth fixing.