NEWS RELEASE December 2017
Navigating the Sea Change in the Combust, Flow and Treat Markets
The industrial internet of things (IIoT) will greatly increase opportunities but also the threats to suppliers of combust, flow and treat (CFT) products. The opportunities include larger markets and higher margins. The threats include the insertion of third parties between the supplier and his traditional customers. The process management system supplier will share profits with the CFT suppliers based on the application and product knowledge each has. Suppliers who leverage the Industrial Internet of Wisdom (IIoW) to empower IIoT will be the beneficiaries. Leveraging will require new approaches.
| New Approaches to Succeed in the IIoT World | ||
| Subject | Old Approach | New Approach |
| Market Research | Top down periodic general guesstimates | Bottoms up forecasts with detailed continuously updated analyses |
| Sales Initiation | Uncoordinated Sales Leads | Identification and pursuit of large prospects |
| Sales Persuasion | Sales Experts | Application Experts |
| Selection Criteria | Price and Service | Total cost of ownership (TCO) and service |
| Location of Specifiers | Individual Plants | Corporate staff with TCO data |
| Acceptance of New and Better Products | Slow | Rapid |
| Collaboration with Other Suppliers | Haphazard | Important to Success |
| Decision Process | Not Systematic | Decision Systems |
|
Subject Matter Experts (SMES) |
Lots of SMES but not well utilized |
Subject Matter Ultra Experts (SMUES) contributing to and improving decision systems |
| Remote Monitoring | Unusual | Prevalent |
| Data Analytics | Unusual | Prevalent |
| TCO Analyses | Expensive and Inadequate | Voluminous and Continuous |
| Third Party Operation | Minor | Major |
| Component Supplier Role | Initial Sale, Spare Parts, Service On Demand | Cloud Based Continuous Involvement |
McIlvaine has a complete program to help CFT companies navigate the sea change in the industry. The market structure and opportunities are analyzed in N031 Industrial IOT and Remote O&M.
The specific opportunities at the 500 largest purchasers are included in each of the product market reports MARKETS
Detailed programs to pursue specific markets are included in DATABASES
New sales routes are provided in: Marketing Program for Combust, Flow and Treat
