December 27, 2017

Igniting Network Effects in Industrial AI : 2 Real World Examples

70 % of successful consumer startups applied network effects to succeed. For example Apple, Google, Microsoft, Facebook, and Amazon —all flawlessly executed network effects as a strategic lever very effectively to succeed in the hyper-competitive marketplace. 

This is an incredible insight and we at Flutura have been fascinated with cross-pollinating and executing this insight to the Industrial AI sector. So the question we asked ourselves was

“How do we use network effects to achieve massively transformative non-linear outcomes in the Industrial IoT space?”

After 3 years of experimentation and learning, we finally managed to nail the playbook for “Industrial network effect”. We will share 2 industrial examples from the trenches where network effects ignited non-linear outcomes and in the process became a global pioneer in applying network effects for Industrial AI Category. So here they come …

Example-1: A leading manufacturer of Industrial glue

The problem this customer was trying to solve was reduced millions of dollars lost from defective glue quality. In order to do this, they had to process a torrent of high-velocity sensor streams across a battery of plants spread globally in 70+ countries. Flutura developed Industrial AI Nano Apps which surgically predict quality outcomes by processing sensor streams in real time.

How did we achieve industrial network effects here? There we 2 levers which we creatively combined to achieve network effects

Per-App Dimension: Multiple surgical apps to solve ultra-specific factory quality problems were created
Per Factory Line: These apps were deployed in multiple factory lines spread globally across 70+ countries which triggered massive network effects.

Example-2: A leading Oil and Gas OEM Manufacturer in Houston

The problem the customer was trying to solve reduce the operational cost of visiting the site by enabling remote digital diagnostics/prognostics using Cerebra. How did we achieve network effects here? We again activated 2 dimensions to trigger network effects

Per Asset dimension: In keeping with the customers roll out program we created a flexible per asset pricing model where cash outflow for customer is tied to their equipment rollout plans

Per-App dimension: Again we created a catalog of Industrial AI apps which surgically diagnose/predict imminent high-value failure modes for nodal assets in the upstream extraction process.
Both of the above examples illustrate the successful application of network effects to achieve non-linear outcomes in the industrial sector.

Closing Thoughts

Platform-based digital business models + Network effects are 2 powerful constructs which innovators used to disrupt traditional models in the consumer-facing industries of Retail, Banking, Telecom etc. 

As Marc Andreessen famously said

“There will be certain points of time when everything collides together and reaches critical mass around a new concept or a new thing that ends up being hugely relevant to a high percentage of people or businesses. ” 
Flutura is blessed to be at the forefront of executing platform-based business models and network effects for the non-traditional world of Oil and Gas, Manufacturing and Engineering/Energy sectors. This is a massive inflection point and we are just getting started.


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