What Are Connected Services?
From microwave ovens to automobiles, home security systems & complex industrial manufacturing processes, connected services are everywhere.
Powered by decades of R&D into edge computing and newer chip architectures, the computer is now an integral part of what was previously just a mix of mechanical cogs & electrical circuitry.
Today’s mechanical actuators are controlled by IoT sensors in close proximity to them, which are in turn controlled by a systems engineer who may not even be in the same latitude!
The point is that connected services are ubiquitous, and their use cases are only increasing.
Some key use cases of connected services across industries:
- Connected services are empowering logistics & shipping service providers with superior fleet management capabilities.
- Home appliances can be controlled remotely and enhanced by information services. Several key players have already released or are planning to release products with IoT-enabled features.
- Another key area finding rapid adoption is precision farming. Using a connected service ecosystem powered by on-ground sensors, parameters such as soil pH, water salinity, moisture etc., can be tracked and modified in real-time.
- While the healthcare industry was an early adopter of connected solutions, key players such as Siemens are looking to incorporate such features extensively into their newer healthcare machines & equipment. These can be controlled over an app interface and provide healthcare workers with precise, real-time data.
Everything from control to monitoring, optimization, and autonomy is being driven by a new generation of smart connected products and services.
Connected Services & Its Impact On Enterprise Value Chain
Without a doubt, the prevalence of connected services has drastically altered the enterprise value chain.
Previously, all verticals existed within an enterprise as completely separate entities, occasionally interacting with each other as the need arises. But with the implementation of a connected ecosystem requiring synergy among different verticals, the lines separating them are blurring.
This is reshaping even traditional industry boundaries and creating entirely new industries. It is not uncommon for experienced industry veterans in automobile or manufacturing to wonder whether they transitioned to an IT career without their knowledge!
Disparate departments such as IT & logistics are integrated and work closely with a sound understanding of each others’ capabilities and responsibilities.
For example, in the manufacturing industry, the steady industrialization of the internet is changing the way companies do business. Service-based and subscription-based models are augmenting their revenue and increasing Customer Lifetime Value. Services are now rendered over cloud-controlled 3D printers that may stop working if the end-user fails to keep up with their subscription plan. Unlikely to happen since this model delivers enormous benefit to the user despite the markedly high costs involved. However, this is offset by the ability to start and stop services and use them on an as-needed basis.
It has also changed the kind of talent that companies typically hire. While warehouse workers were previously in great demand at logistics & retail industries, today, that demand has shifted to engineers proficient in supply-chain software and embedded systems designs.
This, in turn, has changed how service providers deliver solutions catering to an increasingly connected world.
How Connected Services Are Transforming The Sales Ecosystem
With traditional product boundaries going for a toss and the focus now shifting towards modular functionality, greater reliability, and higher rates of product utilization, opportunities for service providers have exploded in recent times.
Service provider opportunities in connected services:
- Sensor-heavy industries such as automobile, aerospace, manufacturing, logistics, and now even farming are expected to invest big in driving the data utilization rates from their connected services ecosystem. While aerospace and logistics have already been big players here, the emergence of modern data analysis, ML models, and Big Data practices has prompted key players to explore more opportunities to make better use of the big data they generate.
- And data analysis means the use of cloud-based services. Not to mention the other services that completely rely upon the cloud to deliver quick millisecond data for real-time operations. Industries are looking at a massive scaling up on cloud resources that sources estimate may run well over US$ 3 Billion by 2023. This involves everything from architecting solutions in the cloud to deployment, maintenance, and security.
- One of the main pain points when it comes to connected services is the security aspect. 53% of consumers in a recent survey reported distrust about the ability of connected services and products to protect their privacy. This is especially significant since these services rely on extremely sensitive customer data to deliver highly customized data. Therefore, it is quite evident that companies will look for service providers specialized in securing connected ecosystems.
It is imperative for service providers to keep track of emerging opportunities in this niche yet exploding domain. Draup for Sales tracks real-time signals in the connected services domain and maps industry-wide use cases that service providers can leverage to understand the ecosystem trends. The AI-powered sales intelligence platform also delivers service providers with precise, human-vetted data about their target industry/company that they can use to customize their proposals.
