“With IoT I sell operation warranty instead of maintenance warranty”

Is it possible to offer an operational guarantee to customers? Johan Vonk, director of the Amsterdam company Betronic, thinks so. "Through the internet of things (IoT), as a company you can intervene proactively before a device breaks down. The technician then arrives at the customer's doorstep, without even realizing that there is something wrong with the device.”

Central heating boilers, heat pumps, fencing, 3D printers, stair lifts and even e-bikes. No matter how crazy you think, Betronic has connected it to the internet. “Yet there are still many companies that are hesitant about the IoT and do not realize the benefits. They don't know where to start, they dread the hassle or don't see the point of it. I want to change that,” says Vonk. He will explain his ideas during the IoT seminar at the World of Technology & Science, from 27 to 30 September in Jaarbeurs Utrecht. Using concrete examples, he explains to his audience step-by-step what the benefits of IoT are, both in practical and financial terms.  

No more maintenance
“Take a heat pump for example,” Vonk starts. “It generates all kinds of data: about the temperature outside and in the pump itself, the number of hours it has been running, the water output and so on. That data goes to the backend via a gateway. It is stored there. The customer can then analyze that data and do something with it. For example, if the parameters in the heat pump suddenly change from normal, the device probably needs maintenance. The customer then receives the signal that there is a fault with the heat pump at address X. A technician then drives to the address so that the pump can be repaired immediately. This is pleasant for the end user, because he or she will not be left out in the cold. Annual maintenance is no longer necessary, because you only go to the customer if there is a specific reason.” 

Easy to solve
Vonk continues: “I recently spoke with the director of a company that manufactures automatic gate systems. Such a fence must always work for safety reasons. Imagine that employees can no longer go in or out, or that all the gates are suddenly open at night and malicious people can walk in! In the past, expensive maintenance contracts were used, but it still happened that a fence broke down in between. With IoT this problem can be easily solved by reading the parameters of the motor. This way you can see when a malfunction is coming. For example, if the engine vibrates more than normal, send a technician to see what is wrong and to carry out a proactive repair. You then sell an operation warranty instead of a maintenance warranty. In certain sectors, such as the medical sector or Defense, this is very important.”

Cost reduction
Efficiency is not the only benefit of IoT. Cost savings is also an important argument, because with the correct implementation of IoT, fewer personnel are required. The latter is sometimes very sensitive for companies, Vonk notes. “Not every organization is ready for IoT. Some companies do not like change and are wary of the organizational consequences. IoT can have a major impact on staffing because some tasks will now be performed by a device. An example is installing a roof fan on a business premises. Previously you needed two technicians to set up the fan. One went onto the roof and the other stayed inside. Thanks to IoT, one technician can do the job, because it is no longer necessary to go on the roof. The technician inside takes the pressure measurements and sets the roof fan remotely. That saves 1 FTE. But who is going to tell that second technician that his services are no longer needed?”

The right person
“What matters is that you get the right person within the organization,” Vonk continues his argument. “An IoT solution must be supported from the C-level, otherwise it becomes a difficult proposition. Ultimately it comes down to two questions: what does it cost and what does it yield? Once customers realize the added value of IoT for their business chain, they are quickly converted."  

Register for free for seminar
Johan Vonk from Betronic opens the seminar 'The challenges of the Internet of Things' on September 27 at 9:30 am in Jaarbeurs Utrecht. In addition to Vonk's lecture, there are others five presentations from specialists about the benefits and challenges surrounding IoT. Consider, for example, the susceptibility to hackers, the load on the network and the number of data centers needed to implement IoT. All these topics – and more – will be discussed during the seminar.

Admission to the seminar is free, but you must register in advance  via the website.