# Why Equipment Assets Should Be The Source of Your Customer Strategy
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-07-30
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Industry 4.0: COVID-19's Impact on Digital
Meta Description: Discover the impact of industry 4.0 technologies in the pandemic response. Learn how companies are adapting to digital change for improved customer experience.
URL: https://financedigest.com/why-equipment-assets-should-be-the-source-of-your-customer-strategyhtml

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While industry 4.0 technologies played a decisive role in the pandemic response at many companies, COVID-19 has also exposed frailties in those that have been slow to adopt digital change. As a McKinsey report, [_COVID-19: An inflection point for Industry 4.0_](https://www.mckinsey.com/business-functions/operations/our-insights/covid-19-an-inflection-point-for-industry-40) recently put it, there have been three distinct outcomes – “a win for companies that had already scaled digital technologies, a reality check for those that were still scaling, and a wake-up call for those that hadn’t started on their Industry 4.0 journeys.”

At the heart of industry 4.0 is data intelligence and the infrastructure that enables it. For many organisations, across a swathe of industries this has yet to be fully realised but what we have learned from the pandemic is that priorities need to change. While emphasis perhaps shifted from increasing productivity and reducing costs, to flexibility and agility in the workplace, there is now a realisation that the ultimate goal is improved [customer experience](https://www.financedigest.com/is-your-customer-experience-exceptional.html "IS YOUR CUSTOMER EXPERIENCE EXCEPTIONAL?"). By using [technology to create direct links with customers](https://www.financedigest.com/manchester-arts-centre-the-lowry-selects-logpoints-siem-technology-to-safeguard-customer-data.html "Manchester arts centre The Lowry selects LogPoint’s SIEM technology to safeguard customer data"), organisations can build relationships that can feed entire strategies for future development.

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Joseph Kenny, VP, [global customer transformation & customer success](https://www.financedigest.com/how-to-turn-a-uk-startup-into-a-global-success.html "How to turn a UK startup into a global success "), ServiceMax

For one company this is already a real goal. While global air conditioning leader Daikin admits it operates in a conservative industry, it was already focused on trying to [build bridges with customers](https://www.financedigest.com/how-do-you-build-customer-loyalty-3-steps-to-follow.html "HOW DO YOU BUILD CUSTOMER LOYALTY? 3 STEPS TO FOLLOW"), pre-pandemic. The idea is to gain competitive advantage through data, a strategy the [business set in motion](https://www.financedigest.com/motion-paradox-business-advice-for-startups.html "Motion Paradox – Business advice for startups") about four years ago.

“We’ve been talking about predictive analytics for some time,” says Michael Trad, head of supply chain and IT at [Daikin](https://www.daikin.co.uk/) Australia and New Zealand. He adds that many organisations have had trouble in getting started because they don’t know where to start. For Daikin, it was a [case of accessing and collecting data](https://www.financedigest.com/use-case-centric-data-management-why-it-is-the-future-of-data-management-for-financial-institutions.html "Use Case centric data management – Why it is the future of data management for financial institutions") as soon as possible, knowing that in future, it would prove invaluable.

Daikin’s vision is to own the customer in the home and for an air conditioning [business that would be no small](https://www.financedigest.com/5-common-tax-mistakes-small-businesses-make-in-australia.html "5 Common Tax Mistakes Small Businesses Make in Australia") feat. The [key to this is the smart](https://www.financedigest.com/hiring-smart-is-the-key-to-success-for-entrepreneurs-heres-how-you-do-it.html "“Hiring Smart” is the key to success for entrepreneurs. Here’s how you do it.") controller. It’s the vehicle that will enable the vision of basing product development, sales, [service and end user experience on the personal needs of customers](https://www.financedigest.com/revolutionising-customer-service-three-sectors-that-are-leading-the-way.html "Revolutionising Customer Service: Three sectors that are leading the way…"). By delivering outcomes, such as air conditioning personalised for each home, supported by data intelligence, Daikin can transform its entire relationship with products, [services and customers](https://www.financedigest.com/id-fraud-is-on-the-rise-can-financial-services-do-more-to-protect-their-customers.html "ID fraud is on the rise: can financial services do more to protect their customers?").

The key ingredients for this are of course a connected infrastructure, enabling the [business to ‘talk’ to devices](https://www.financedigest.com/thoracic-drainage-devices-market-rising-new-business-opportunities-for-investors.html "Thoracic Drainage Devices Market Rising New Business Opportunities for Investors") remotely, via IoT networks, for example and the ensuing user data it generates. For Trad, it’s the lifeblood for Daikin’s future, [data that can feed marketing and sales decisions and influence product direction and ensures customer](https://www.financedigest.com/should-insurers-buy-data-direct-from-their-customers.html "Should insurers buy data direct from their customers?") satisfaction.

“We want this 360-degree view of the [business](https://www.financedigest.com/improve-your-business-while-saving-the-planet-and-your-back-with-easycat.html "Improve your business while saving the planet and your back with EasyCat") to understand gaps and where to improve,” says Trad. “And our biggest gap at moment is [customer](https://www.financedigest.com/allianz-benelux-taps-into-modern-data-management-to-combat-fraud-and-foster-a-positive-customer-experience.html "Allianz Benelux Taps into Modern Data Management to Combat Fraud and Foster a Positive Customer Experience") data.”

Daikin is using the [ServiceMax](https://www.servicemax.com/uk) field service management platform to facilitate its 360-degree view of servicing and supporting customers and installed equipment. Industry 4.0 capabilities and the development of smart controllers and home sensors will, adds Trad, help [solve this problem](https://www.financedigest.com/british-start-up-reveals-the-secret-to-solving-the-problem-of-identity-fraud.html "British start up reveals the secret to solving the problem of identity fraud"). It’s a self-fulfilling evolution, a circle of life for each customer that [puts the customer front and centre](https://www.financedigest.com/new-research-from-impact-com-shows-shifting-power-dynamic-that-puts-influencers-at-the-centre-of-the-brand-consumer-relationship.html "New Research from impact.com Shows Shifting Power Dynamic that Puts Influencers at the Centre of the Brand-Consumer Relationship") in the minds of Daikin, something that would not be possible without its continued, data-driven transformation.

Service data is not just a [missing piece of the jigsaw but a key piece that can add crucial intelligence around performance and profitability](https://www.financedigest.com/ericssons-quarterly-core-profit-misses-expectations.html "Ericsson’s quarterly core profit misses expectations"). But [service data](https://www.financedigest.com/keeping-data-in-the-vault-insider-breach-risk-in-financial-services.html "Keeping data in the vault: insider breach risk in financial services") intelligence is also outpacing the executive skillset. Companies that do well are usually more diverse and have more diverse data sets.

The challenge for all [organisations is understanding where that value](https://www.financedigest.com/adding-value-to-your-organisation-by-attracting-top-gen-z-finance-professionals.html "Adding value to your organisation by attracting top Gen Z finance professionals") lies and how to utilise it. There is so much data, from CRM systems, [asset performance management](https://www.financedigest.com/french-watchdog-fines-h2o-asset-management-executives-over-tennor-investments.html "French watchdog fines H2O Asset Management, executives over Tennor investments"), finance, logistics, HR and increasingly from remote devices through IoT. Throw in [service data](https://www.financedigest.com/the-chase-is-on-for-more-alternative-data-within-financial-services.html "The chase is on for more alternative data within financial services"), which is becoming richer, smarter and touches just about every part of the business, and you have a recipe for success but only if you can read recipes.

For any business, looking for change post-pandemic, there are some key [lessons to learn](https://www.financedigest.com/learning-the-lessons-of-the-bangladesh-bank-heist.html "LEARNING THE LESSONS OF THE BANGLADESH BANK HEIST") here. Any transformation should have an ultimate purpose, but that purpose should ideally revolve around [customer experience](https://www.financedigest.com/curating-a-fully-contactless-customer-experience-for-payments.html "Curating A Fully Contactless Customer Experience for Payments ") and not cutting costs and focusing on productivity. If organisations connect [assets and build towards an outcome-driven future of customer](https://www.financedigest.com/bahamas-regulator-holds-ftx-assets-pending-delivery-to-customers-creditors.html "Bahamas regulator holds FTX assets pending delivery to customers, creditors") service and product provision, other aspects will fall into line. Costs will be justified, and productivity will increase through greater customer knowledge.

As more mobile devices and IoT networks, location technologies, interfaces, augmented devices and wearables proliferate [across industries](https://www.financedigest.com/digital-transformation-across-the-banking-industry.html "Digital transformation across the banking industry"), so organisations have to readjust their strategies. The challenge for any organisation is where to start, although when you think about it, it’s not so difficult. All [businesses should focus on the customer and with big](https://www.financedigest.com/smishing-is-a-new-virus-plaguing-big-business-conversational-commerce-to-the-rescue.html "‘Smishing’ is a new ‘virus’ plaguing big business – Conversational Commerce to the rescue!") data analytics derived from that proliferation of assets, it’s easier than ever before to make it happen.

_Joseph Kenny is_ _VP of global customer transformation & customer success at_ [_ServiceMax_](https://www.servicemax.com/uk)


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