Heidelberg, Honeywell, and Eaton:

1. Why should manufacturing companies build smart products and provide smart services? What business benefits can be gained? Provide several examples beyond those discussed in this case? In business, “Smart” means solving problems fast and efficiently. For manufacturing companies, decreasing the cost, increasing the profit and expanding the market are the benefits they can obtain. If manufacturing companies can develop smart products or smart services, they can gain those benefits. In the paragraph, it said maintenance is one of the key elements in the life cycle of a product. The function, efficiency, reliability and permanence will also be the other key components to affect the market. The more functions a product has, the higher price will be sold. If a product can enhance the reliability and permanence, both customers and companies can diminish the cost when they try to fix the products. The other important thing for a product is operating efficiently. High compatibility not only create high value added product but also raise the efficiency. Combining above can build a brand image and expand the market. Thus, a company can reach the terminal goal of the business and gain the benefit.

2. What information technologies are used by the companies in this case to build smart products and provide smart services? What other IT components might be used? Give example of the capabilities they would provide.

The main information technologies used in the Heidelberg case are built-in sensors and networking microprocessors, kinds of self-monitoring and networking capabilities. Honeywell developed Experion Process Knowledge System (PKS). This information and operation technologies system is deployed by a customer but controlled and monitored by Honeywell via network connections. The other manufacturing company, Eaton, designed “Home Heartbeat”. This system use water sensors, open/closed sensors, and power sensors. The sensor system