How are OEMs joining the IoT trend?
Technology today is growing in leaps and bounds. The Internet of Things (IoT) is a driving force behind this revolution, due to the deep connectivity and ingenious processing power it offers. Original Equipment Manufacturers (OEMs) are standing at a crossroads. They must not only consider how to integrate IoT into their current products, but also how to increase the smart capabilities of their products. More importantly, they must also work out how to harness this power to drive innovation and progress in their respective industries.
Leverage Existing Modules to Expedite the IoT Transition
In this dynamic and ever-changing market landscape, the IoT represents more than just communications and connections between devices. It can also collect, analyze and apply data to increase productivity and overcome obstacles. It can even form comprehensive systems to prevent problems from happening. How, then, should manufacturers make this transition?
The key question is essentially a choice between “internal development or external purchases?” Even if an OEM has the ability to build a proprietary system, it requires vast amounts of time, resource and expertise. However, choosing an existing solution already on the market, such as a system on a module (SoM) or single board computer (SBC), can cost-effectively simplify the development process.
These pre-purchased and pre-built modules make the design and implementation process much easier than starting from scratch. The use of pre-certified wireless communication functions also reduces complications caused by compliance barriers. In radio frequency (RF) designs, for example, using a pre-certified wireless module can significantly reduce the time required to take a product to market and avoid risks and costs associated with the certification process.
Beyond hardware, the IoT can greatly improve the efficiency of data collection and connectivity. Manufacturers can collect invaluable data from their products by combining high-performance IoT devices and strong cloud computing platforms. This data can be analyzed and applied to improve operations, increase productivity, or create new business opportunities.
With the IoT, OEMs seldom start from scratch and build their own cloud computing infrastructure. The majority of existing commercial cloud platforms have already built the necessary infrastructure framework, which provide the microservices necessary to process large volumes of IoT data. Today, leading cloud services such as AWS and Microsoft Azure are already using innovative systems called “microservices”. You can think of them as a series of small but highly effective working units. They work together in a flexible and efficient manner to handle big data and devices. These methods save time and resources, while ensuring data management and analysis are professionally handled. This frees up the OEM to focus on its core business of creating marketing-leading products.
In order to reap the full benefits of the IoT, cloud platforms must be equipped with extensibility. It’s a little like designing a railway system at a busy train station. The station must be able to handle all the trains during rush hour. Similarly, OEMs must develop a special communication protocol, called an application program interface (API), so their devices are able to smoothly communicate with these microservices.
IoT Connect by Avnet is a smart tool that offers an excellent solution to this challenge. The tool is not only capable of having an effective “conversation” with cloud servers, but can also clearly explain how device manufacturers can save the valuable time required for learning and development. To this end, Avnet has even created some “conversation templates”. These conversation templates can be packaged into "accelerators” that are specifically geared towards fields like the automation of smart cities or factories. The templates are like recipes, to which OEMs can add their own “spices” according to their needs.
IoT technology is in the midst of a rapid evolution. It is developing more and more smart capabilities, like using artificial intelligence (AI) for face detection, or using machine learning for predictive maintenance. This sets the stage for IoT Connect by Avnet to use its “partner engine” to streamline the entire process, so that manufacturers can effortlessly integrate these sophisticated functions.
Software as a Service Pushes the Limits of the IoT
As our world becomes increasingly digitized, the combination of “software as a service” (SaaS) and the IoT is the story everyone is talking about. IoT devices continuously collect large amounts of data, while SaaS provides web-based applications in the cloud. These applications can be used to store, manage, and analyze the data collected from IoT devices. SaaS platforms allow businesses to analyze this data in real time and gain valuable insights that can help them update their products, optimize operations, or make data-based decisions.
SaaS operates like a library. You can subscribe to get access to a software license, and software providers are responsible for maintaining or updating the software.
For OEMs, SaaS has already surpassed traditional software sales models. It’s a sustained service commitment that’s similar to television streaming services. The arrival of new content is the key to holding users’ attention. But how exactly would that work? The powerful secret is over-the-air (OTA) technology, which allows remote, online updates. It’s akin to when our cell phone apps need an update. We don’t need to go to the store to download the latest version, but can just update everything online. OTA is the key technology that gives SaaS lasting value.
Of course, OTA is not without its challenges. First, security is critical. OTA is like your front door. If you don’t lock it, then anyone can just walk in. So, enhanced security measures are a prerequisite for the success of any SaaS product.
In addition, the issue of data ownership must be examined carefully. An SaaS model must clearly state where the data generated by devices is going, and who has the right to use this data. It requires clear guiding principles and rules. Imagine what would happen if an express delivery company didn’t know who was the rightful recipient of a package? The same applies to data. Therefore, establishing reliable data management and ownership agreements is of the utmost importance.
Avnet has plenty of experience when it comes guiding our customers through the adoption and implementation of SaaS solutions. Our IoT Connect platform not only supports SaaS business models, but also provides the high-level security functions, device management capabilities, and unparalleled extensibility required by the IoT.
In view of both the potential challenges and benefits of the IoT, businesses should see SaaS as not so much the sale of a product as a comprehensive service experience. Just as a restaurant must provide not only good food but an exceptional dining experience, ongoing customer support and continuous product improvements are key to the long-term success of SaaS.
Conclusion
In summary, the IoT gives manufacturers access to an unprecedented opportunity. To seize this opportunity, building all products and services from scratch is not always the most effective or economical choice. Alternatively, businesses can efficiently transition to the IoT by using existing modules, pre-certified communications solutions, and powerful cloud services. OEMs can combine their own innovations with the use of external resources to harness the rapid development of the IoT. SaaS can also be used to provide continuous and lasting customer value experiences.
OEMs that adopt existing solutions to swiftly and fully embrace the advantages of the IoT will no doubt gain a winning edge in a highly competitive and time-sensitive market.
