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