Appliances Offer New Option for OEMs

According to ARC’s recently released Total Available Market for the Industrial Internet of Things Global Market Research Study, OEM machinery will be one of the early IIoT adopter segments within manufacturing. This is because IIoT offers a significant value proposition in OEM machinery due to the ability to remotely monitor, diagnose, troubleshoot, update, and cost-effectively manage this equipment. But what if the OEM does not have the expertise to develop it on their own? And what opportunities could they be missing because of it?

This analyst has observed that commercial software solutions often have their roots in homegrown solutions developed on the fly in spreadsheets to satisfy a need. An entrepreneurial type may think other manufacturers must need the solution too so they strike out on their own, mortgage the house and kids, and start a company to further develop the solution for commercialization. That takes a special type of person, and lots of hard work and dedication to be successful. While the homegrown approach may fill the immediate gap or launch a career, homegrown solutions often prove unsustainable over time. Another option is to work with an existing supplier to develop a solution to meet the requirements.

OEMs may be finding themselves in a similar situation when it comes to remote monitoring and diagnostics for their equipment. They are experts in the equipment itself but not necessarily in the technology involved in condition monitoring or the software to interpret sensor data, but feel compelled to develop it internally in order to take advantage of the opportunity to create or expand on its service model. Understandable, given the size of the opportunity and that remote monitoring is frequently cited as the low hanging fruit.

At least one supplier, GE Intelligent Platform Systems, feels the OEM pain. As an OEM, the entire GE organization was faced with the same challenge as it sought to improve the user experience and create new service opportunities. In addition to a stable of high value machinery in its portfolio, GE has the benefit of a world class condition monitoring company and software expertise in its expansive product portfolio from which to draw. The result is a solution drawing from all corners of GE expertise: an appliance, a pre-engineered and pre-built solution for remote monitoring and diagnostics, an app for OEMs if you will. According to an IndustryWeek interview with Steve, Pavlosky, GM OEM Solutions, GE Intelligent Platform Systems, an appliance offers OEMs a scalable solution at reduced cost, manpower, and risk.

An appliance may not quite meet the exact definition of a COTS solution, but they do offer advantages over starting from scratch. ARC believes solutions such appliances are representative of those that will emerge as a result of IIoT. Much like the software entrepreneur, GE saw a need and developed a solution to meet it.