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Construction And The IoT: Own It, Control It, Get Out In Front Of It, Or It Will Control You
How are Telematics and the instrumentation of assets going to be inevitable for the construction equipment industry?
At an AEMP symposium in November 2014, Chris Rezendes mentioned that the instrumentation of assets will be the next big thing for heavy equipment operations. I could not agree more and, surprisingly, this statement from 2014 is still relevant today.
The “instrumentation of assets” is the digitization of physical objects, whether that be buildings, pipelines, machines, components or operations. This can be done through embedded communication devices, sensors and other, data retrieving systems.
Today, the implementation rate of telematics in construction equipment is still low, which leaves opportunities in all shapes untapped. As Rezendes mentioned,
“He or she who controls the intelligence – the data about those assets, inventories and areas of operation – will control that market, the customer, the regulatory environment and the supply chain. They will control you.”Chris Rezendes
It is important that the general mindset in the construction equipment industry changes; instrumentation of assets is not just fleet management. The instrumentation of assets will enable the exploration of new business models. Gaining insights of which one did not even think of before. Without investing in what you do not know today, you will never get to know.
A great example of finding new business opportunities through the instrumentation of assets:
The combination of the seat occupancy sensors in your BMW, your reviews of restaurants on TripAdvisor, the digital engine hour meter and your location, provides opportunity for the perfectly timed lunch. When driving with your kids in the backseat (noticed by the seat sensor) for multiple hours straight (the hour meter), you are about to pass one of your preferred restaurants (TripAdvisor & location). Based on this information, the restaurant offers you a great deal on a lunch break for your hungry kids.
This example shows that new business opportunities can be identified once one is willing to invest effort in the world of IoT.
When talking about the instrumentation of assets, we should not only think about the machines itself, we should look at the bigger picture; complete job-sites. From light towers to screeners to documentation and even people.
Personally, I think Rezendes has been ahead of the change that is going to hit the construction equipment industry soon. The coming years will determine which organizations are best prepared for exploiting the opportunities that telematics can offer.