This case study examines how three companies - Heidelberg, Honeywell, and Eaton - developed smart products and services using information technology. Heidelberg used sensors and networking in printing presses to remotely monitor equipment and optimize performance. Honeywell deployed a remote control system at oil refineries to reduce costs. Eaton created a home monitoring system using various sensors to alert homeowners of issues. The companies benefited from lower maintenance costs, increased services revenue, and expanded customer bases by developing these smart product and service strategies.

1. Case Study1:
Heidelberg, Ho
neywell and
Eaton – Smart
Product and
Services

2. Case Study1:
Heidelberg, Honeywell and Eaton – Smart
2 Product and Services
Group Members:
Farhan Ishraque Khan BIT 0201
Md. Saeed Siddik BIT 0218
Atish Kumar Dipongkor BIT 0217
July 19, 2012

3. Case Study1:
Heidelberg, Honeywell and Eaton – Smart
3
Product and Services
Overview:
 What is Smart Product & Service?
 Problem Identification
 IT Solution
 Advantage of Smart Product
 Case Study Questions Answers
July 19, 2012

4. Case Study1:
Heidelberg, Honeywell and Eaton – Smart
4
Product and Services
Smart Product!!!
 Embedded Service - Paving the Way for Smart Products
 Do not 'become smart' by throwing more features.
 Smart products get smart by using Internet-delivered
services.
 Businesses are rushing to get embedded systems into
the hands of workers to improve operations.
Example: Police departments, airlines, shipping
services, rental car agencies.
July 19, 2012

5. Case Study1:
Heidelberg, Honeywell and Eaton – Smart
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Product and Services
Uses of Smart Services
• Minimize maintenance and repair cost.
• Cost effectiveness.
• User Friendly.
• Time effectiveness.
• Customer and user satisfaction
July 19, 2012

6. Case Study1:
Heidelberg, Honeywell and Eaton – Smart
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Product and Services
Inputs from Case Study: Heildelberg
 High-end Printing Presses for printers and print media producers.
 Smart Product: Ability to monitor its equipments remotely using
built in sensors, networking microprocessors and other IT
technologies.
 Insight to optimize printing performance.
 Minimize maintenance and repair cost.
 Financial year 2010/2011: Heidelberg presents figures for first six
months – significant rise in incoming orders.
July 19, 2012

7. Case Study1:
Heidelberg, Honeywell and Eaton – Smart
7
Product and Services
Inputs from Case Study: Honeywell
• Control & Automation system for Petroleum Refineries
• Represented small part of cost involved in operating
and maintaining a refinery.
• Process Knowledge System: A system of operations and
information technologies deployed at a customer’s
refinery but remotely controlled by Honeywell.
• Fewer false alarms, less anticipated downtime and
lower maintenance cost.
• Enabled Honeywell to increase scope of other services
provided to customers.
• Fortune 100 company that invents & manufactures
technologies .
July 19, 2012

8. Case Study1:
Heidelberg, Honeywell and Eaton – Smart
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Product and Services
Inputs from Case Study: Eaton Corp.
 Began making axles and later diversified into residential circuit
breakers
 Home Heartbeat: Monitors the status of various home systems and
alerts the homeowner when something is amiss.
 Usage of water sensors, open/closed sensor, power sensor and
wireless network.
 Sustainability: At Eaton, sustainability isn’t an autonomous program or
initiative. It’s how they do business – and it’s an increasing part of
their business success.
July 19, 2012

9. Case Study1:
Heidelberg, Honeywell and Eaton – Smart
9
Product and Services
Question 1
Why should manufacturing companies build
smart products and smart services?
What Business Benefits can they gain?
Provide several examples beyond this case.
July 19, 2012

10. Case Study1:
Heidelberg, Honeywell and Eaton – Smart
10
Product and Services
Importance of building smart products
and services
 Its not enough for companies to offer valuable services for their
products but to provide “smart services.”
 For smart services, usage of IT to build “smart products,”
 Smart products can detect approaching failure and alert users.
 Gives the company opportunity to provide maintenance services
and enjoy the resulting benefits.
July 19, 2012

11. Case Study1:
Heidelberg, Honeywell and Eaton – Smart
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Product and Services
Benefits of smart products and services
to Business
 In business, “Smart” means solving problems fast and
efficiently.
 Decreases the cost and increases the profit.
 Expansion of customer base in the market.
 The functionality, efficiency, reliability and sustenance
of smart product and service will also be the other key
components to affect the customer and market.
July 19, 2012

12. Case Study1:
Heidelberg, Honeywell and Eaton – Smart
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Product and Services
Importance of building smart products
and services contd.
 The more functions a product has, the higher price will
be sold.
 If manufacturing companies can develop smart
products or smart services, they can gain those benefits.
July 19, 2012

13. Case Study1:
Heidelberg, Honeywell and Eaton – Smart
13
Product and Services
Examples Of Smart products and services
 Smart Systems for Cars for Safe Mobility and pedestrian
safety
Pedestrian Recognition, Intersection Control, Lane
Departure Warning, Stability Control, Detection of
Surface and Pavement Conditions, Night Vision, Driver
Condition Monitoring, Redundant Systems for Vehicle
Control and Emergency Shutdown
 Driver Assistance Smart System
Autonomous Handling of Routine Driving Conditions, Driver
Information on Traffic, Intelligent Speed Adaptation,
Sensing of Driver’s Intentions; Intelligent Transport
Systems
July 19, 2012

14. Case Study1:
Heidelberg, Honeywell and Eaton – Smart
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Product and Services
Question 2
What information Technologies are used by
the companies in this case to build smart
products and services?
What other IT components might be used
and their Capabilities?
July 19, 2012

15. Case Study1:
Heidelberg, Honeywell and Eaton – Smart
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Product and Services
Information Tech used by the
companies
HEIDELBERG (Printing Company)
Smart printing services comprising of built in
sensors, networking microprocessors and internet.
HONEYWELL (Petroleum Refinery)
Experion process knowledge system comprising of control
and automation systems, remote network technologies
and knowledge system.
EATON CORP (Electrical Appliances)
Home heart beat Systems comprising of water
sensors, open/closed sensors, power sensors, wireless
communication system and a key fob device(used by
customer to communicate with base station) July 19, 2012

16. Case Study1:
Heidelberg, Honeywell and Eaton – Smart
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Product and Services
Other IT components that might be used
 e-Commerce
 Buy and Sell without intermediaries
 Refurbished products can also fetch profits
 Database Management
 We can do Data Mining and implement Fuzzy logic to do
Analysis and trending of Business Operation
 Customer Relationship Management
 Improve customer Behavior and Experiences
 Identify customer purchase / demand behavior trending
 Identify competitive Strategies for effective Decision
Making
 Supply Chain Management
 Improvement of logistics
 Ease of part procurement
 RFID
 VNC (Virtual Networking Control) July 19, 2012

17. Case Study1:
Heidelberg, Honeywell and Eaton – Smart
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Product and Services
Question 3
What are some limitations of a smart
products and services strategy?
Give examples of challenges that a
business might encounter and how to
overcome them?
July 19, 2012

18. Case Study1:
Heidelberg, Honeywell and Eaton – Smart
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Product and Services
Limitations of Smart products and Smart
Systems
 Infrastructure cost incurred for initial installation at
customer end.
 Focus on Elite customers.
 Embedded Technology – reliability issues.
 Usage of network – internet, mobile technology and
other communication technologies.
 Reliability of sensors and microprocessors.
 Not feasible for a huge customer base.
July 19, 2012

19. Case Study1:
Heidelberg, Honeywell and Eaton – Smart
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Product and Services
Business Challenges Faced by Companies
Manufacturing Smart products and services.
 Marketing challenges for smart products.
 Peoples perspective towards smart products and
services.
 Price of the smart products and services.
 Customization for diverse customer base.
 Lack of chances for mass production.
 Data security
 Rapid changes in technology.
 High Skill Manpower Requirements
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20. Case Study1:
Heidelberg, Honeywell and Eaton – Smart
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Product and Services
Methods to overcome Business Challenges
 Usage of Appropriate technology for development of
smart products and services.
 Understanding the needs and requirement of consumer
base and expansion in consumer market.
 Integrating simplicity of operation and functionality.
 Adaptation to changing IT and IS and incorporating the
same in the products and services.
 Usage of quality parts and components in smart
products and services.
July 19, 2012

21. Case Study1:
Heidelberg, Honeywell and Eaton – Smart
21
Product and Services
References:
 Heidelberg, Honeywell, And Eaton:
[http://www.caseforest.com/case-study-Heidelberg-Honeywell-And-Eaton.aspx]
 OPPAPERS : Heidelberg, Honeywell, And Eaton
[http://www.oppapers.com/essays/Heidelberg-Honeywell-And-Eaton/729675]
 Smart Products and Smart Services - Heidelberg, Honeywell & Eaton
[]
 Heidelberg, Honeywell, and Eaton: Using Information Technology to build smart
products and services.
 [http://mishelper.blogspot.com/2011/07/heidelberg-honeywell-and-eaton-
using.html]
 [http://mishelper.blogspot.com/2011/07/heidelberg-honeywell-and-eaton-
using.html]
July 19, 2012

22. Case Study1:
Heidelberg, Honeywell and Eaton – Smart
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Product and Services
Q & A ???
July 19, 2012

23. Case Study1:
Heidelberg, Honeywell and Eaton – Smart
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Product and Services
July 19, 2012