Instant Customer Value with Big Data

Image: Caterpillar

Corporate Challenge: Increasing customer value with IoT.

Ironbound Strategy: Prioritize stakeholders when adopting IoT so that it’s implementation creates exceptional value for the brand’s customers, employees, and society.

Ironbound Action:  Texas based Caterpillar Inc has been building and repairing machines since 1925.  The company placed more than 20 sensors on over 1.2 million new machines, which gave Caterpillar insights on detecting problems and estimating down times.  Instead of keeping the “big data” for themselves, Caterpillar has been reaching out to customers with small and easy to fix problems before they get worse and costly.  For instance, poor road conditions cause wheel slippage, that can be fixed early in as little as 2 hours with a new tire – but unnoticed it can turn into a grinding $300,000 expense that takes 10 days to fully fix.  Brands like Caterpillar that already create value for stakeholders are more likely to use connected devices to save their customers time and money.  Big Data can provide any brand with an opportunity to create immense value for customers in new and exciting ways.  

​* Caterpillar sales have increased phenomenally, from $39.0B in 2020, to $48.1B in 2021, to $56.5B in 2022.
 
** Profit per common share of CAT has increased from $5.51 in 2020, to $11.93 in 2021, to $12.72 in 2022.