The Emergence of Product Analytics & Intelligence
A new Harbor Research White Paper explores the game changing impact of product analytic tools.
Early adopters of product analytic tools—particularly IT equipment and infrastructure providers—see its game changing impact. They believe product analytics will bend the traditional value chain into a “feedback loop”; valuable information from connected products will continually flow back through the complex business alliances that create, deliver, and support those devices.
Most IT equipment manufacturers are classic product companies. They tend to limit their service and support offerings to the minimum capabilities required to ensure customer satisfaction. In recent years many IT equipment players have advanced their networked service and support offerings as a new means to generate sustainable growth. However, while most support automation programs do impact the costs and effectiveness of delivering services, they do little to make use of “product intelligence”: the vast stores of information value based on the usage and behavior of connected IT equipment. A new generation of analytic tools is emerging that takes the value of connected products a significant step further. These tools dramatically increase a product OEM’s focus on customer needs—in many cases before the customer recognizes these needs. As it evolves, product intelligence will amount to nothing less than a “digital nervous system” that automates functions and processes, allowing equipment OEMs to achieve undreamed-of customer intimacy.
Harbor Research’s latest www.harborresearch.com%2forchesys.html”> explores the adoption climate, benefits, economic impact and success factors arising from connected product analytics. It was provoked by the introduction of www.glassbeam.com%2f”> Glassbeam, a new product analytics offering from Orchesys. Glassbeam offers a unified solution for analytics related to product usage, behavior and support, based on leveraging embedded intelligence in IT equipment. Glassbeam is not an incremental new support scheme. Rather, it offers a significant step-function change in the way systems and equipment performance will be analyzed and managed in the future.
Currently, most of the discussions concerning product support automation focus almost exclusively on the basic monitoring of values such as alarms and alerts. But the attention that basic monitoring is receiving threatens to steal the limelight from the real revolution: utilizing connectivity and analytic tools to tightly integrate customers and their equipment partners. This is where the real value lies.
The feedback we have gathered from early adopters shows that while field intelligence provides significant improvements to product support, there is much more hidden value in product intelligence than heretofore understood. Connectivity enables many additional values including transparency into the usage and behavior of products as well as feedback to customers to help optimize systems and application performance. Armed with better customer intelligence, services organizations can now deliver value added services such as health checks and audit reviews to their customers, realizing higher revenues and increasing customer satisfaction and adoption of new products and solutions.
We believe product data analytics presents a unique dimension to the broader connected products and services story. Any equipment manufacturer that chooses to network-enable its products and leverage this information through product analytics holds a brand-new trump card: the manufacturer gains valuable information and insights generated from networked devices. This creates a profound empowerment that is surprisingly under-appreciated.