Building End-User Relationships for Manufacturing Firms Essay

Introduction

Internet of Things has played a significant role in transforming modern manufacturing process through machinery networking, digital control systems, dynamic response to product demand and real-time product optimization and supply chain management (Evans, 2018). There is a significant need to link manufacturers with the products end users which will significantly improve consumer satisfaction and producer-consumer knowledge (Schimek, 2017). IoT will play a significant role in the future of manufacturing goods by increasing consumer influence on the final products. Probabilities for IoT application in manufacturing are endless but more importantly is the role that IoT will play in increasing manufacturing ability to meet the dynamic needs of the consumers timely. In most manufacturing situations, the relationship between the customers and the producer's ended upon the delivery of the products to the customers or the distributors (Evans, 2018). This has significantly limited the ability of the manufacturers to get insight from the consumers on their product desires. Through IoT, manufacturers have the opportunity of creating lifelong relationships with the end consumers (Schimek, 2017). Through after-market services and add-ons to the purchase packages, manufacturers and consumers can mutually benefit through an IoT application that allows a lifelong relationship between manufacturers and end-users. This proposal will assess how IoT application can be used to establish a lifelong relationship between the manufacturers and the end-consumers and the implications to both parties.

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Statement of Need

Optimization and digitization have enhanced the flexibility of manufacturing organizations to be able to create different products designed for specific consumer segments (Evans, 2018). The insight from IoT application that is integrated with the organization can significantly improve consumer satisfaction which is the goal of every manufacturer. End-user consumer relationship can increase the market data that manufacturers require to make product decisions (AlHogail, 2018). Therefore, the desire by manufacturers to increase insight on customer preferences and behaviors is high today for the optimization and digitization of the manufacturing process.

Similar Activities to the Proposed IoT Product

Market Research

Currently, most manufacturers rely on tedious and resource intense market research to be able to have insight on consumer needs and preferences. Market research involves the systematic gathering of consumer data on their goods and services preferences and behaviors which is used by manufacturers to understand customers' needs and preferences. Market research can be able to help manufacturers understand consumers buying habits and the impact of the manufacturer products on the consumer needs but it takes time, and it is also limited in that it might not target actual product consumer's views and preferences (Krokhina, 2017). As such, market research is not effective in timely insight needs and makes the decision-making process for the manufacturer long which reduces its effectivity. As such, timely decisions in the manufacturing process can help manufacturers to discern the needs of the consumers and create goods that are in alignment with the consumer preferences.

Qualities that Make the IoT Idea Better

Continuous Manufacturer Relationship with the Consumers

IoT supported an end-user relationship between the consumers and the manufacturers allow the producers to be able to offer product support to the consumers in a lifelong relationship. Unlike market research which is seasonal, the end user relationship based IoT product can help consumers to be able to acquire additional product services such as repairs and operation advice from the manufacturer (AlHogail, 2018). In a lifelong relationship, manufacturers can identify any technical problems with their products which allow optimization of the products to meet the needs of the consumers as envisioned in the consumer preferences.

Continuous Product Development

Today, the success of any business is based on the relationship with customers throughout the life of the product. Manufacturers have identified the impact of consumer insights in creating products that meet the needs of the consumers. Consumers and manufacturer relationship help the manufacturer to be able to continuously meet the needs of the customers which changes with time. Through a lifelong relationship with customers, manufacturers can be able to adapt their products to the needs and desires of the consumers. Products that undergo continuous development can be able to continuously meet the needs of the customers which increases returns for the manufacturers compared to a manufacturer who relies on seasonal product development through market research (Sayar & Er, 2018). Continuous product optimization has been made possible through the availability of digital technology in manufacturing which makes it easy to design products based on the needs of the consumers.

Consumer-Based Competitive Advantage

A continuous lifelong relationship with the consumers helps manufacturers to acquire a competitive edge over their competitors easily. Understanding the dynamic needs of the consumers is critical for any business to be able to achieve any meaningful long-term success. As a result, using IoT to create long-term relationship can be able to bridge the gap between the consumers and the manufacturers which drives long-term sales and product success in the market (AlHogail, 2018). A manufacturer competitive edge ensured continuous market success and high returns for the shareholders.

Chosen Market to Benefit from an IoT Product

Automotive Manufacturing Industry Lifelong relationships can be more sustainable and cost efficient in markets that deal with durable products. The relationship between vehicle and manufacturers can play a significant role in improving long-term customer satisfaction by increasing the reliability of the product. In the automotive industry, there are many companies undergoing competition and producing units that meet the needs of the consumers. Regular updates of the products, as well as insights from the product users on the problems and successes of the product, can help car manufacturers to quickly optimize their vehicle products to meet the different dynamic needs of the consumers. Manufacturer and consumer relationships mediated by IoT can be a game changer for many vehicle manufacturers by improving the existing operation processes (Evans, 2018). Most of the vehicle manufacturers rely on the feedback from distributors or from expensive market research to be able to optimize their products. The globalization of the automotive industry makes it futile and costly for automotive manufacturers to be able to continuously create products based on customer insights due to the distance between the manufacturer and the consumer. Through IoT enabled technology product today many consumers can access the internet which can help manufacturers to maintain personalized relationships with the consumers which are both long-term and more fulfilling to both the customers and the producers (Evans, 2018). Different global markets require different product features which can be factored in during the manufacturing of the vehicles which improves the performance aspect of the vehicle products and the satisfaction of the consumers. For instance, tractors are used to plough soils in different continents, and the soil properties vary from locality to another. Through end-user relationships with the manufacturers through IoT, manufacturers can design tractor products that are specifically designed for specific consumer environment and situations and improve product performance and customer satisfaction.

IoT Product Support for Electronic Commerce/ Business to Consumer Electronic Commerce

The end-user relationship between the manufacturers and the consumers in the automotive markets can significantly improve electronic commerce. Technology has enhanced transportation of goods, and through the IoT product, vehicle owners can be able to get genuine parts for their vehicles directly from the manufacturers at a price that is below that offered by the dealers (Sayar & Er, 2018). As such, vehicle owners can quickly pay their repair parts through electronic payment methods and get their products delivered in time.

Pros and Cons of the Proposed IoT Product

Pros of the IoT Product

• The IoT product makes it possible for manufacturers to create a lifelong relationship with consumers.
• Manufacturers can get consumer insights on the product continuously compared to the seasonal market research.
• Already existing technology through android mobile technology makes it easy to implement and manage the IoT product.
• Continuous optimization of the products through continuous consumer insight increases consumer satisfaction and loyalty.
• Manufacturers can meet global market needs through IoT supported technology that helps manufacturers to understand the different needs of the consumers.
• Consumers can get genuine advice and repair parts from the manufacturers.
• Manufacturers can create a direct relationship with the consumers without the middlemen which improves profits and flexibility in product pricing.

Cons of the IoT Product

Financial Cost

In a continuous relationship between consumers and manufacturers, the manufacturers incur additional costs due to returned products and customer compensation. It is essential for the manufacturer to understand the bottom line cost of the end-user and manufacturer relationship to ascertain the viability of the IoT product (Sayar & Er, 2018).

Conclusion

The global expansion of manufacturing businesses and the growing diversity of clientele require manufacturers to be able to understand the needs of the consumers which are dynamic based on global positioning and time. As such, it is viable for manufacturers to take advantage of IoT technology applications to create end-user relationships that are lifelong to support the product consumers. Through such a relationship, manufacturers can meet the gap between the information they have about the needs of the customers and the desired information through consumer insights. Consumer insights can improve the ability of the manufacturers to continuously optimize their products to meet the needs of the consumers.

References

AlHogail, A. (2018). Improving IoT Technology Adoption through Improving Consumer Trust. Technologies, 6(3), 64.

Evans, M. (2018, May 31). IoT Will Have The Most Impact On Business In The Next Five Years, Survey Says. Retrieved from https://www.forbes.com/sites/michelleevans1/2018/05/31/iot-will-have-the-most-impact-on-business-in-the-next-five-years-survey-says/#fedd06a5a3d

Krokhina, A. (2017). Relationship Marketing: Developing Seller-Buyer Relationships, Case: Fitness Empire.

Sayar, D., & Er, O. (2018). The antecedents of successful IoT service and system design: Cases from the manufacturing industry. International Journal of Design, 12(1), 67-78.

Schimek, R. S. (2017). IoT case studies: companies leading the connected economy. American International Group, available at: www. aig. Com/content/dam/aig/america-canada/us/documents/brochure/iot-case-studies-companies-leading-the-connected-economy-digital-report. pdf (accessed May 24, 2017).[Google Scholar].