NEWS RELEASE October 2017
Navigating the New Market Route for High Performance Products and Services
The Industrial Internet of Wisdom (IIoW) will radically change the way high performance products are selected. The opportunities for higher margins and increased market share dictate a unique sales effort.
McIlvaine can provide the tools to help suppliers create the needed sales program.
High performance products are those whose quality justifies a price above the minimum specification. General performance products are sold based on price and service. There is no reason to conduct total cost of ownership analyses.
In the past it has been very difficult to analyze total cost of ownership of various high-performance product alternatives. As a result, high performance products have been sold the same way as the general performance products. The sea change is the new ability of the purchaser to determine the lowest total cost of ownership (TCO). With IIoT empowered by IIoW the corporate buyer will have the TCO for each of the alternatives and make his decisions accordingly. The main role of the sales group will be to make sure the buyer has an accurate TCO.
At companies such as BASF, Rio Tinto, Arcelor Mittal, and Duke Power IIoT and Remote Monitoring is enabling corporate specialists to analyze the performance of every valve, pump, filter, and turbine in the global fleet of plants. IIoW is in its infancy but as it grows it will provide not only the total cost of ownership but the guide to new and better products.
IIoW utilizes the data analytics provided by IIoT and provides the interconnection between end users, suppliers, and subject matter experts to create the TCOs and more importantly create new products with lower TCOs. The interconnections need to be as prolific in IIoW as in IIoT. They include
- Supplier personnel in each product group and geography interconnecting with peers around each of the 1000 large purchasers of combust, flow and treat products and services (McIlvaine can identify the opportunity for each product for each of the 1000 purchasers)
- Owner-operator personnel in each plant and in each role interconnecting around processes and products used in more than one of the plants (McIlvaine has a beta site for BHE Energy)
- All players interconnecting with each other in new ways
- User controlled groups expanding scope to create decision systems and through digital technologies become international (Suppliers with lowest TCO can support and sponsor this activity)
- Supplier controlled groups focused on total cost of ownership studies (Major HEPA filter competitors combining forces to provide TCO for gas turbine inlet filtration)
- Associations expanding role to create decision systems and periodic webinars to integrate with annual meetings
- Individual User programs for suppliers expanding to create IIoW (examples are AEP Bro Forum and the SABIC bi annual conference and exhibition)
- Creation of Subject Matter Ultra Experts (SMUEs). Tomorrow’s experts will master the massive TCO data generated from IIoT. The SMUE will need to be very focused and to continually utilize and help create the decision systems around his specialty. The suppliers of the high-performance products with the lowest TCO products will benefit from the SMUE validation of their claims.
IIoT is growing up but IIoW is in its infancy. Suppliers have the opportunity to grow along with it. McIlvaine has a program to help them do so.
For more information contact Bob McIlvaine at This email address is being protected from spambots. You need JavaScript enabled to view it. or 847-784-0012 ext. 112.