Rethinking Value in Industrial IoT: From Tracking to Transformation

In 1998 the book Who Moved My Cheese? captured the imagination of millions, selling 26 million copies worldwide. The “cheese” in the story is a metaphor for any goal or asset—whether a warehouse pallet, a workbench tool, or a KPI such as uptime.

Just a year later, Kevin Ashton, then a brand manager at Procter & Gamble, coined the term Internet of Things while solving the mystery of a disappearing lipstick shade. He proposed embedding a radio‑enabled microchip into the product to let both the company and its customers track inventory automatically. Ashton explained in a 2017 interview that IoT “means computers gathering information by themselves,” enabling machines to become situationally aware and automate tasks that were once manual.

Today, twenty years after the term’s birth, the idea of networked electronics for monitoring is no longer novel. “It’s pretty easy to know where something is,” says Scott Nelson, chief product officer at Digi International. “I just put a GPS on it, and I know where it is at all times.”

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Nelson argues that situational awareness alone is insufficient. The current IoT landscape is shifting from merely locating assets to driving business intent. Instead of just telling you where the “cheese” is, systems should advise you when to act—aligning technology with the broader business or activity it supports.

Earlier hype around IoT met skepticism from manufacturing professionals. Guneet Bedi, general manager of the Americas for Relayr, recalls doubts that “IoT and digital would actually work in the industrial world.” Survey data now show that most industrial stakeholders are convinced of IoT’s potential, yet they still ask: what business outcome, and in what timeframe?

In the boardroom, leaders are redefining what is bought and sold. Mike Lackey, global vice president of solution management at SAP, explains that some companies will transition from selling a product to selling a service. For instance, car manufacturers may offer a contract for a set number of miles rather than a vehicle, allowing customers to switch models as needs change.

Manufacturers enabling such experiences must overhaul internal processes. Werner Reuss, head of industrial IoT at Orange Business Services, notes that the focus has moved from connectivity to the smart factory—optimizing production lines as a driver for underlying technologies.

Çağlayan Arkan, global lead for manufacturing and resources at Microsoft, echoes this view: “It’s not about technology, it’s about business value and outcomes.”

Hunter Douglas exemplifies this shift. Lackey cites the company’s evolution from stock shades to 35,000 custom blinds a day, driven by demand for voice control via Alexa, remote operation, and scheduling. This required upgrades to manufacturing capabilities and new customer engagement models.

Another illustration is Bosch’s track‑and‑trace testbed, developed with the Industrial Internet Consortium. Originally intended to detect tool locations within a meter, the system now ensures precise assembly—detecting incorrect screws or torque, thereby aligning with workflow compliance and efficiency goals.

Nelson describes this as moving beyond situational awareness to behavioral performance, a proxy for employee engagement. “Employees who love the company first drive customer love,” he cites Simon Sinek. Improved engagement translates to higher output and profitability.

Industrial firms should be open to rethinking business models but must realistically assess their readiness. Bedi advises understanding how quickly they can evolve—“a large company may need 12 months to retrain its sales team.” Building predictive maintenance algorithms, for example, takes time to develop and refine.

In sum, industrial IoT is no longer a novelty; it is a catalyst for redefining value, optimizing workflows, and enhancing employee engagement. The challenge lies in aligning technology with clear business outcomes and realistic timelines.