Case Story for Closed-Loop PLM with IIoT

​The recent IBM InterConnect event had 21,000 attendees in two locations in Las Vegas. It combined three previous events and included on cloud, mobile, analytics, and cognitive computing. Fortunately, ARC was there for the sessions on the Internet of Things (IoT).  One in particular by Cummins for its diesel engines caught my attention.

Industrial IoT for Closed-Loop PLM at Cummins

Usually, equipment manufacturers make products that are installed and used by others without feedback on performance - until something goes wrong.  Essentially, the product development occurs "open loop" without customer feedback.  Kevin Massey, Cummins, provided a superb presentation on how to achieve "close loop" product lifecycle management (PLM) with Industrial IoT (IIoT).

The Cummins engines already have intelligence in the form of the engine control module (ECM) which has access to all the engine data.  By adding communications, it transfers data to IBM CloudOne with analytics.  Now, product development has access to performance data that it uses to improve the engine's design.  Configuration changes are sent to an engine to improve its operating performance and reliability. 

The primary reason for Cummins' IoT initiative is to improve the design of the engine, gain competitive advantage, and grow market share.  Another benefit has been a reduction in warranty costs. 

New Revenue with Industrial IoT for Condition Monitoring

Cummins has started to consider adding a condition monitoring service for the users of its engines.  Cummins sells its engines through an extensive dealer network that also services the equipment.  The strategy would be to offer a predictive maintenance (PdM) service where Cummins manages the data acquisition and analytics, and transfers the results to its dealers who engage with the user to deliver the maintenance services.

Conclusion

Industrial IoT (IIoT) has evolved from a thought-leading concept to a technology with practical applications that has particular benefits for original equipment manufacturers (OEM).  The IBM event offered demonstrations and case stories to substantiate new business strategies identified by ARC Advisory Group, including selling PdM services and using closed-loop PLM to grow market share.  The benefits of IIoT for OEMs involve revenue growth, which grabs senior executive attention for improving shareholder value.