Heidelberg, Honeywell & Eaton

Topics: Manufacturing, Information technology, Product service system Pages: 6 (1878 words) Published: February 29, 2012
Heidelberg, Honeywell & Eaton Case Analysis

Ashish Srivastava Amit Gupta Harpreet Singh Boparai Deepak Khare Mohit Naman Assignment being submitted as part of the Pre Work for

Management Information System

EPGDIB (VSAT) 2011-2012

Executive Summary:
This case is about the benefits rendered upon the manufacturing industry with the evolution of the smart products. The case highlights the shift in consumer preferences of the products and services offered by various manufacturers and the evolution of Information Technology as a method to deliver these “Smart Products”. As highlighted in the case of these three companies, the choice of customers is no longer restricted to a bundled offer of product and maintenance services. It has transitioned to a higher level of customer satisfaction which cannot be achieved without the effective and an efficient use of Information Technology Systems. Companies are fast deploying the various facets of Information Systems in their manufacturing processes to deliver these benefits and maintain or increase their competitive advantage. Effective Implementation of Smart Products can help the companies achieve the following broad benefits  Support of business processes and operations  Support of decision making by employees and managers  Support of strategies for competitive advantage The case revolves around the innovative solutions (referenced below) provided by the three companies and how they used the Information Technology in their product development process to deliver the smart service. Heidelberg which developed a remote monitoring system which covered its entire footprint of printing presses deployed at client locations Honeywell which developed a control and automation system deployed in the refineries of its clients dealing with the Oil Industry Eaton which revolutionized the home security industry with its trade mark product, “Heart Beat “

Problem Statement

1. Why should manufacturing companies build smart products and provide smart services? What business benefits can they gain? Provide several examples beyond those discussed in this case.

Today’s Business environment is very complex and competitive. There is a huge competition among organizations and people have lots of options to go for. So in order to become the choice of its costumer products need to be smart than the rest and it should provide best services so that consumer can make the optimum utilization of product. Developing a new product is no longer a concern, developing a smart product which does something that rest of others of similar nature doesn’t is one of the most challenging task of organizations. Some of the reasons why smart products are changing the business environment: •

Faster implementation of new concepts in products; This is evident in the advent of the smart phones. With an effective use of technology, the manufacturers were able to innovate and deliver iPhones to customers which not only met the basic telephony requirement but also added the capability to bring social networking , photography , ecommerce as part of the smart package Faster delivery of products to customers; In the modern era , it is very important to cut down the time between shelf and end user for products. FedEx ( Global Courier Giant ) uses an order tracking software ( and a hand held device ) which informs the customer ( through email and SMS ) the current location of their packet , estimated time of delivery , Delivery Wagon details and post delivery the recipient’s name. This ensures a timely delivery and reiterates the confidence level of the customers in the brand. This is an effective utilization of smart services which sets FedEx apart from its competitors

Fuller utilization of capital and human resources; In case of a Southern Electric in US , the automated system calculates the marginal cost of delivering additional kilowatts of electricity to Southern Company customers anywhere in...
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