Converting data into services
Many companies are still looking for the best way to cope with data and to extract value from them. Having a strategic plan to use data as part of your business model is the first step and the best way to guarantee results. By defining and gathering appropriate actions, you can maximise the impact of data on your shareholders or your company’s value creation. Of course, (raw) data on their own do not create value. The goal is to implement an integrated approach of data acquisition (physical and virtual “sensor” data), data storage (metadata), data processing (refined data) and decision making (learning and reasoning), which leads to actionable insights and creates an impact on your products and/or production processes.
Depending on the business model, a company can choose different routes to success, as depicted in the figure below. The most promising and profitable business model is that of the “value-added partner”. Companies with this type of business model are:
The availability and proper analysis of the resulting data generates:
We expect that service offers will lead much faster to measurable success. What is needed to capture the corresponding value?
It should be clear that converting data into services will not happen overnight, but gradually, depending upon the availability or development of relevant capabilities (see figure below). It all starts with the collection of data, which are then used to improve product and production processes. Subsequently, the generated insights will enable design and development changes for an improved performance versus price ratio. Finally, data captured and processed by various companies and in various sectors can be made available and transferred to other companies, leading to better products and production processes. (Predictive) Maintenance and field services in general are really benefitting from these actionable data as they allow to upgrade products and production systems in due time and within a pre-programmed timeframe that is compatible with the production planning or the use of the product by the customer. As a result, the operational efficiency will also improve significantly. Finally, over time, as an increasing number of insights are generated, the value proposition will continuously improve, leading to better services.
Although the latter presents a huge potential for many companies, you must avoid getting lost within the multitude of possibilities offered by many different partners. It is crucial to select the right partner from the start. A partner that offers services that are in line/compatible with your own maturity (data occupation) level and that guarantees gradual improvements focusing on your customers’ needs and the required services. It should also be clear that you need to invest in appropriate personnel for this task. He/she should be able to establish a good dialogue with the selected partner and understand its offer while linking it to your own offer to the market.
Do you want to know more about using data in your business? Be sure to download our Industry 4.0 report! Fill in the form below and we will send you the report via email.s
Dirk Torfs - CEO
Flanders Make offers infrastructure for testing and validating products and production systems. As part of these activities, we have adapted two..
The increasing complexity, uncertainty and speed of change within our competitive economic world requires new ways of working. Not only to survive as..
Ugani Prosthetics is a Flemish social startup whose mission is to bring down the prices of prosthetics. This makes them more broadly accessible for..
Sign up for our newsletter and receive the most interesting articles about innovations in the manufacturing industry and updates about Flanders Make.