Recently, I had the privilege of participating in the Schwegman Lundberg & Woessner’s Data Monetization webinar series.
In this particular episode - “Data Monetization in Manufacturing, Industrial & B2B” - the panel explored some of the opportunities and issues around monetizing data in the industrial marketplace.
The group discussed everything from the fundamentals of data generation and aggregation to using design thinking methodologies to create value by solving hard problems with information derived from data. Far from just being an academic discussion, the panel also reviewed companies that are seeing success with these constraints as well as some that are struggling.
Here are some key takeaways from each panelist’s presentation. If your company is working on digital transformation – or even considering it – this webinar episode is insightful, instructional, and inspiration. The full episode can be viewed here.
- Professor Manjeet Rege of the University of St. Thomas. Prof Rege’s discussion focused on the ongoing transformation of the industrial ecosystem from product-centric to services has informed the audience of how data enters the picture with traditional manufacturers. He touched on the transformation from products to services and now the use of IoT and data to provide digital services in addition the traditional services like maintenance, support, and consumables.
Equipment Finance takeaway: The diversity of available data sources and applications is continuously increasing. Equipment Finance leaders need to look not at the data they have and try to find a use, but rather they should identify problems they need to solve and ask “what kind of data can help me?”
- Scott Branum of Evoqua Water Technologies. Branum’s presentation was a deep tutorial on how a traditional industrial company makes the change outlined by Prof. Rege. He described Evoqua’s evolution away from being a product-centric company sending multiple sales people to any given customer site. He led the conversion of that product point-of-view into a more solution perspective with customer outcomes as the focus. Communicating products and the data that they generate have become the basis of delivering solutions and services that are more meaningful to their customers while being more cost effective to both produce and sell.
His experience providing water to hospital systems during the COVID pandemic was particularly inspiring for those of us looking at digital transformation. Because Evoqua had transitioned to data supported Service Level Agreements, they were able to maintain the hospital’s access to water without unplanned in person calls. Their latest offering, WaterOne®, extends these data driven services to a true outcome-focused offering – the use of clean water. Water One® customers pay for the water they use and Evoqua has much higher service efficiency due to the use of data. This was a great example of the agility and flexibility that digital enterprises have at their disposal.
Take note of Scott’s last slide that outlines the progression of digital transformation deployed at Evoqua. He outlines the steps necessary in the progression from Data 1.0 with data aggregation, to Data 2.0 using visualization and centralized services to fully digital operations including AI and Automation at Data 3.0.
Equipment Finance takeaway: Evoqua is a great example of how connected-product OEMs are changing the way they go to market and in so doing are entering the domain of “monthly invoices” for services offered.
- Scott Nelson of Tamarack. I wrapped up the webinar with an investigation of what monetization really means in a connected product economy – Don’t forget the users. My message was even though this was a discussion of industrial B2B applications, success is derived from a design thinking approach that always includes the users.
Successful monetization for a digital enterprise is measured by adoption and users are key to adopting. I reviewed four constraints that must be considered when an enterprise looks to engage data for customer solutions:
- Digital is an Experience Economy
- Ownership is Obsolete
- Uncertainty forms the basis profit
- And not Or: Enterprise AND Users.
Equipment Finance takeaway: Whether you are a lessor, a lender, or an equipment finance service provider, the end user is the key to success in the connected-experience economy. Our industry needs a design thinking view that looks at the entire customer journey – from initial awareness, to origination, to operations and use, and finally end of use.
I would like to thank Steve Lundberg of Schwegman Lundberg & Woessner for hosting the webinar and for the invitation to participate.