NEWS RELEASE January 2022
Reducing AWE Product Cost of Ownership While Increasing Supplier EBITA
The win-win situation for suppliers and purchasers in the $300 billion air, water and energy industry are products which cost more but reduce cost of ownership by an even greater amount. the Industrial Internet of Wisdom (IIoW) can be leveraged to create interlocking Causation Loops which create win-win results.
They will provide suppliers, consultants, media and event organizers with the opportunity to increase sales and profits while lowering cost of ownership for the purchasers.
The Industrial Internet of Things (IIoT) has achieved these goals by organized interconnection. The potential for IIoW is even greater.
There are at least five interlocking IIoW Causation Loops.
Participant IIoW Causation Loop
Management consultants provide an overview and trends which market forecasters can convert to specific opportunities. Suppliers can develop superior products for each opportunity. Media and Event organizers can communicate the cost factors and provide validation directly to the purchasers.
Focused IIoW Causation Loop
Focus needs to be undertaken in each niche which has a unique cost of ownership factor. This includes how a product would be specially applied within the process, the plant, the corporation, and the industry. If the corporation has an approved bidders list, then the plant is limited in its decision making. If there are industry standards or regulations they must be considered. This loop is completed with detailed forecasts of the opportunities
Validation IIoW Causation Loop
Total cost of ownership analysis needs to be undertaken by the supplier for his product and those of direct competitors.The superiority of the product needs to be validated through the media and event organizers including webinar hosts.
Pricing IIoW Causation Loop
Presently it is much easer to buy the familiar product than a better one. With the interlocking causation loops it will be easy to buy the better product at a higher price if it reduces total costs.
Geographic IIoW Causation Loop
Companies such as BASF, Shell, Arcelor Mittal, Merck and Intel have corporate initiatives to “buy better” on an international basis. Basic steps such as assigning a number to every corporate entity regardless of name changes or Chinese to English translations is needed.
Creating a universally used database for cost of ownership factors such as energy in each geographic niche is important.
The use of the interlocking causation loops will reduce cost of ownership for the purchasers, increase EBITA for the suppliers, and change the strategy to pursue the most profitable market (MPM) in the following ways.