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Enhancing OEM's business models with cloud monitoring

As digitalisation technology continues to transform the way that businesses around the world operate, the widespread use of cloud monitoring in factories has given original equipment manufacturers the potential to overhaul and improve their current business models.

Currently, OEMs regularly sell a specific part to a factory to help complete an entire line. An example of this is the relationship between Microsoft and Dell. Acting as an OEM, Microsoft will supply their Windows software for Dell to incorporate into their computers.

Now, as cloud technology continues to become more essential, OEMs can start to build a new product-as-a-service process for their clients. Instead of the end-user buying the machinery, they’ll instead rent it from the OEM. With the original equipment manufacturer still owning the machine, they will have access to the data it collects.

At this stage, they can analyse the data and use the information gained to try and upsell their clients. So, if they find that their machine isn’t operating at full capacity due to a bottleneck further down the manufacturing line, then they can offer their client a solution.

It also helps OEMs to provide technical maintenance before their machine runs into any problems. Cloud monitoring helps them achieve this by gathering and processing data to identify the lifespan of each machine part and any errors that could occur. The result is the opportunity to provide proactive maintenance to clients, preventing major breaks and minimising downtime.

According to the ISA, factories lose at least 5% of their productive capacity due to downtime, with worse cases dropping 20%. It’s also reported that 80% of facilities don’t estimate this correctly and could be underestimating the total downtime cost by 200-300%.

When a crucial part of a manufacturing line fails, it can be disastrous for a company as they suffer from lost time, reduced production and are forced to stop, or quickly implement a temporary fix, until a permanent solution can be put in place.

With this in mind, OEMs can use Industry 4.0 to provide a service that keeps smart factories running and helps protect their clients’ bottom lines by fixing potential issues before they become real problems. This means that businesses can more accurately estimate the total downtime costs, which in turn can lead to better business decisions and more effective prioritising of key issues.


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