IIoT and Non-Reoccurring Engineering for the OEM
by Brian Rosema, Director of IIoT Strategy at LEC, Incorporated
Okay, time to level-set the reality of the IIoT for the OEM masses: There is no entry without non-reoccurring engineering (NRE), regardless of industry wordsmithing and cost-bundling.
However, it appears NRE is often forgotten in our messaging, marketing and discovery conversations, when we should be openly discussing NRE and the IIoT budget early on. We also tend to re-label NRE as “Customization,” “Professional Services,” and “UI Development,” etc. to make it sound more pleasant.
I believe the market perception is that IIoT platforms provide a mystical transformation of data into a highly functional user interface and set of robust analytical tools that will revolutionize an OEM’s business tomorrow. The real story is that while some platforms do provide some strong “out of the box” functionality, there are none that will fit an OEM’s unique product and service offerings and end-customer needs without necessary customization.
It is here, in the NRE, that we see IIoT opportunities die, budgets blown and hopes dashed. Or, it is here where we see IIoT solutions born, but lacking the functional needs to help the OEM discover new revenue streams, create ROI or compete with their enterprise market leaders?
Therefore, scaling IIoT is truly dependent on developing technology and processes to drive down NRE. Only then will there be true industry transformation and real access to IIoT by the OEM masses. Industry-specific widget libraries, simple UI development, multi-layered customer access, prebuilt industry templates, automated device configuration tools and simple data-tag development will be key to reducing NRE.
Some in the industry clearly recognize this challenge, and are already taking the necessary steps toward changing the NRE acronym to mean Not Restrictively Expensive.
About Brian Rosema: Brian has an extensive executive-level background in wireless data, M2M, IIoT, and wireless network architectures. As an IoT thought-leader, Rosema has written industry articles and presented at key industry events over the last decade. He has directed sales, business development, marketing and strategic alliances in a variety of roles with Red Lion, Digital Highway Inc., Protect Cell and Red Leaf Consulting Group. He has a BA in Business Administration from Hope College.
Connect with Brian on LinkedIn.