After-sales services for connected products will outpace product-related revenue

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

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To help IT and non-IT leaders in manufacturing justify investment in connected products for after-sales service transformation, International Data Corporation (IDC) – a global provider of market intelligence and advisory services – has published a new report called IDC Planscape: Transformation Service through Connected Products. According to the report, leading manufacturers have seen the potential that aftersales service revenue holds, with some collecting up to 50 percent of their profits from aftersales sources. This trend will continue: IDC estimates that by 2020, onboard service revenue will outpace product-related revenue by a factor of two. The new IDC Planscape answers 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?
"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. 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," concludes Heather Ashton, research manager for IDC Manufacturing Insights. The full report can be purchased from the<link http: www.idc.com> IDC website.

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