3 03, 2019

Using the 4W Framework to Rationalize IoT Investments

By |2019-05-03T08:52:05+00:00March 3rd, 2019|Internet of things, IoT, Private Equity Value Creation|

Developing IoT solutions for existing product lines is increasingly important to industrial companies of all sizes and scopes, primarily because they’re seen as important value-adds without the need to reinvent the wheel itself.

One example: manufacturers are adding sensors to their devices in order to provide customers with a preventative maintenance service – the product is monitored and, when necessary, serviced, without inconveniencing the customer. The result: no disruptive field failures, the product’s service life is extended, and by extension the brand enjoys a stronger affinity from the customer.

That’s the theory, anyway.

IoT Potential vs. Reality

Because we live in an era with virtually unlimited potential for imagining digital tools and the connective networks that bind them, industry is faced with a difficult decision: while IoT devices sound good in theory, how do you know if an IoT investment actually makes sense?

To answer that question, we recommend answering four key questions about the users (and uses) of the IoT product prior to actual development and deployment. We’ve bundled these into what we call the 4W […]

5 06, 2018

Making the Case for – or Against – IoT for Mid-Market Manufacturing

By |2018-06-05T10:10:10+00:00June 5th, 2018|Private Equity Value Creation|

The rapidly falling costs of sensors and cloud-based storage have more than a few B2B industrial companies wondering if it’s time to add sensors to their products, thereby opening new data (and revenue) streams.

IoT is, of course, big business. Discrete Manufacturing, Transportation and Logistics, and Utilities will lead all industries in IoT spending by 2020, averaging $40B each and Bain predicts B2B IoT segments will generate more than $300B annually by 2020, including about $85B in the industrial sector.

Which may be why I’m sensing a growing level of uneasiness over IoT strategies within the ranks of privately owned middle market companies (assuming those strategies exist at all).

Bain estimates

And who can blame them for eyeballing a piece of that considerable pie, particularly when faced with the incessant pressure to generate investor returns? Add some sensors, capture the data and, lo and behold, a new revenue stream is born, right?


The potential of IoT

Given the industry’s mounting interest in IoT and having personally worked with major public […]