NEWS RELEASE February 2018
Impact of IIoW Empowered IIoT on the Combust, Flow and Treat Market
There is a sea change in the obtainable combust, flow and treat market. Those companies leveraging the Industrial Internet of Wisdom (IIoW) to empower the Industrial Internet of Things (IIoT) will generate both higher revenues due to higher margins per unit sale but also increased market share. An example would be condition monitoring at the dozens of BASF plants around the world. The process management system is built around use of Samson valves and E+H instrumentation. At the very least Samson and E&H have expanded their market share at all the BASF plants around the world. to the extent that the sales include edge computer software built upon product and process knowledge the unit sales are also increased.
Markets can be divided into four categories including the three traditional ones and a new one created by the sea change in the business environment.
- TAM or Total Available Market is the total market demand for a product or service.
- SAM or Serviceable Available Market is the segment of the TAM targeted by your products and services which is within your geographical or asset reach.
- SOM or Serviceable Obtainable Market is the portion of SAM that you can capture.
- WOM or Wisdom-based obtainable market is the bigger opportunity created by a sea change in the route to market.
Two pump companies will be substantially impacted by the sea change. One embraces it and one does not.
|Revenues Before and After IIoW Empowered IIoT|
|After- Based on SOM||After - Impacted by WOM||After - Total|
|B||$$||$||(Loss of Market Share)||$|
In this example two pump companies had equal sales before the sea change. After the sea change one company loses half its market while the other one doubles revenues.
The impact of IIoW will be more important than that of IIoT. Steps to leverage IIoW can be taken immediately independent of eventual edge computing process development. In fact the edge computing process management product will be based on IIoW initiatives. These initiatives include greater knowledge of how products present and future can improve specific processes for specific customers. This wisdom in turn is based on interconnection of people and knowledge.
The five step program to leverage IIoW is found at www.mcilvainecompany.com