You've seen the opportunity and understand the tools. Now it's time to turn strategy into reality. The difference between connected product success and failure often comes down to implementation approach. Smart OEMs start focused, build momentum, and expand strategically.
Implementation Strategies for Industrial OEMs
For product managers and operations leaders considering connected product initiatives, several implementation strategies can maximize success:
Start with a Minimum Viable Connected Product
Rather than attempting to build a comprehensive connected product platform immediately, begin with a focused application that delivers clear value to a specific customer segment. Using pre-built foundations, even this minimal implementation can include professional branding, multi-tenancy, and core functionality, creating a solid impression with early customers.
Leverage Simulation for Early Demonstration
Modern IoT platforms can simulate realistic device data without requiring physical hardware. This allows product teams to demonstrate connected product functionality to stakeholders and early customers before completing hardware development or retrofitting existing equipment with sensors and connectivity.
Architect for Data Integrations
Ensure that the platform and system architecture is ready to bring data in from various systems. However, this isn’t just about ingestion, data should be easy to move to other systems too. This means that the solution isn’t just another silo in the organization. The more this is thought about at the planning stages, the better.
Prioritize White Labeling and Branding
The visual presentation of connected product applications significantly impacts customer perception. Prioritize platforms that support comprehensive white labeling, allowing your brand identity to be consistently applied throughout the user experience. This branding consistency helps position the connected offering as an integral part of your product portfolio rather than a third-party add-on.
Plan for Progressive Enhancement
Design your connected product strategy to support progressive enhancement over time. Begin with fundamental capabilities like remote monitoring and basic insights, then expand to more sophisticated features such as predictive maintenance, performance optimization, and outcome-based services as your platform and customer relationships mature.
Case Study: Industrial Equipment Manufacturer Transformation
To illustrate these principles in action, consider the experience of a mid-sized industrial equipment manufacturer that implemented a connected product strategy using a pre-built foundation:
The company began by selecting critical equipment for connectivity, focusing on high-value assets where operational insights would deliver significant customer value. Rather than building a custom application from scratch, they leveraged a pre-built connected product foundation with white-labeling capabilities.
Within a couple months, they launched a branded connected product platform that provided customers with real-time equipment monitoring, performance analytics, and maintenance recommendations. The application used simulated data during sales demonstrations, then transitioned to live data upon installation at customer sites.
The initial deployment focused on basic monitoring and alerts, but the modular architecture allowed the manufacturer to progressively add capabilities:
- In phase two, they incorporated predictive maintenance algorithms that reduced customer downtime by 23%
- In phase three, they added performance optimization features that improved equipment efficiency by 15%
- In phase four, they introduced outcome-based service packages with guaranteed performance levels
This phased approach delivered immediate value while establishing a foundation for ongoing enhancement. Within 18 months, connected services represented 12% of the company's revenue with significantly higher margins than their traditional hardware business.
Conclusion: The Strategic Imperative for Connected Products
For industrial OEMs, connected products represent not just a technological evolution but a strategic imperative. In markets increasingly defined by digital capabilities and service-oriented business models, manufacturers must transform traditional equipment into intelligent, connected offerings to remain competitive and capture new value.
The good news is that this transformation has become more accessible than ever. Pre-built foundations, open implementations, and modular components dramatically reduce the technical barriers to entry, allowing industrial OEMs to focus on their unique value propositions rather than underlying technology infrastructure.
Product managers and operations leaders should view connected product initiatives as core to their competitive strategy, not as peripheral technology projects. By leveraging the right platforms and implementation approaches, manufacturers can accelerate their digital transformation journey while establishing new revenue streams and deeper customer relationships.
The window of opportunity remains open, but it won't stay open indefinitely. Industrial OEMs that move decisively to embrace connected product strategies will establish competitive advantages that late movers will struggle to overcome. The time for connected product transformation is now.
Don't let another quarter pass without action. Start your connected product proof-of-concept this month: select one high-value product, identify 3-5 beta customers, and launch a usable connected solution within 90 days. Your competitors are already moving. Make sure you're leading the charge, not playing catch-up.
Learn More About Losant
Losant's IoT platform helps organizations of all sizes get their solution into market faster. Whether it's a new IoT application or to migrate an existing application, Losant is here to help. If you'd like to learn more, please contact us.