siliconindia | | April 20189invigorate their business models. IoT applications, such as `intelligent' me-ters and appliances, connected cars and wearable are generating unprece-dented volumes of enterprise and con-sumer data. Consequently to derive invaluable insight from the amassed data, companies are aggressively le-veraging Big Data Analytics, Machine Learning, Artificial Intelligence, and other disruptive technologies. Impact of IoT on the Con-sumer Durables IndustryIn the consumer durables industry, IoT applications can be broadly di-vided into two segments ­ industrial and consumer. The industrial segment includes industrial and retail automa-tion. The consumer segment is driven by smart automation in lifestyle, home and consumer durables products. The consumer durables industry is not new to the IoT concept. Con-trolling the home air-conditioning with your smart phone or wearables that monitor your body statistics while jogging ­such products are being de-veloped rapidly. The advances in the usability and efficiency of these prod-ucts are further driven by IoT. Understanding the customer's buying process is an important part of any business strategy. While the customer's journey continues to be the same barring a few new aspects such as e-Commerce, IoT has added a new phase to include usage and the acceptance of new services. For the consumer durables industry, much like retail, consumer experience is now a critical aspect of their business. With increasing competition, consum-er durables companies can no longer just meet their customers' short term needs. This is further compound-ed by the fluidity of product needs across industries.Emerging Business Models for the Consumer Durables IndustryThe IoT is and will continue to erode traditional business models. Un-derstanding how connected devices and things will impact lifestyles will ensure that companies are well po-sitioned for better profitability and success. Consumer durables compa-nies that have been visionary in the adoption of IoT have made significant changes in their business models ­ ei-ther with a complete business trans-formation or through acquisitions. As consumer durables compa-nies evolve into connected products companies, they must also recognize and address the ensuing challenges. A case in point is a leading multina-tional manufacturing conglomerate, with special focus on electronics. The company made several acquisitions focusing on their IoT and Artificial Intelligence strategy. It also combined its existing IoT services into a single united IoT platform referred to as SmartThings Cloud. Their aim is to provide a single platform enabled with a nine-point security check. In another instance, a leading Eu-rope based consumer durables manu-facturer has also forayed into the con-nected homes space. The company has worked actively with over 300 brands to unlock the potential of IoT through the Open Connectivity Foundation so that companies can create products that work seamlessly together. Anoth-er key component is partnerships with the large ecosystems including Goo-gle and Amazon to create new experi-ences for customers through voice and Artificial Intelligence.These cases are indicative of the new and emerging business models that consumer durables companies need to adopt. Leveraging IoT and combining products & services en-hanced through the use of AI and other automation technologies is the way forward. ConclusionAs we review this new emerging busi-ness scenario and evaluate the disrup-tive thinking that goes into it, we see ourselves as not just mere consumers of products and/or services, but as pro-ducers. Consumers today have turned into producers, actively defining what products we want and what kind of services we like. But as consumer du-rables companies recognize and nav-igate agile adoption of IoT and other automation technologies, they must also recognize challenges of security, data breaches and supply chain. At the cross section of the physical and digital convergence, it is extreme-ly important to embrace disruption as the way of life and doing business. Companies that are prepared to exper-iment, learn fast and adapt to changing conditions, are certain to stay ahead of the curve. Consumers today have turned into producers, actively defining what products we want and what kind of services we like
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