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The world is moving into an era where everything will be connected. The number of connected things is expected to grow to 50 billion by 2020. And already today, costs of sensors and wireless technologies are deteriorating and enabling companies to run new business models which have not been possible before.

One of the most prominent business cases for the internet of things is around maintenance and service of enterprise assets. With world-wide maintenance costs in the range of $500 billion, more and more asset owners are moving from a preventive to a more mature predictive maintenance strategy. This helps reliability engineers to reduce additional maintenance costs and unplanned downtimes by predicting failures long before they happen.

With adding remote diagnostics into existing service processes also the manufacturers of equipments can now provide differentiating and higher margin service offerings to their customers and at the same time improve product quality by better understanding root causes of failures.

On November 11, 2014, SAP has launched “SAP Predictive Maintenance and Service, cloud edition”.

The solution is based on the SAP HANA Cloud Platform and provides the connectivity with the physical device. The data from the devices are mapped to the master data of the asset in the respective business systems. SAP Predictive Maintenance and Service solution then monitors the incoming data and will generate alarms once critical thresholds are exceeded. Those alarms will then trigger follow-up actions like service or maintenance orders in business systems to ensure smooth integration with established business processes.

Alerts and error codes can be analyzed with advanced ad-hoc reporting and analytics. Dashboards and KPIs will help maintenance and service technicians to understand the alert situation and asset performance at any point in time.

By using SAP Predictive Analysis, reliability engineers and data scientists can leverage a rich set of prediction models and machine learning algorithms in the HANA Predictive Analytics Library (PAL). Decision trees or regression based models will help to identify failure patterns to better understand root causes for failures as well as predict future malfunctions.

With SAP Predictive Maintenance and Service, SAP operates a secure internet of things platform in the cloud including “hot storage” in SAP HANA and “cold storage” for historical data in a traditional database. So, there is no need to install and run a big-data platform in your own data centers. A subscription based model also allows companies to start small with initial pilots and then grow the business over time.

If you want to learn more details about the solution and see a demo, please join my webinar on November 18. You can sign up here

Additional information on SAP Predictive Maintenance and Service can be found below:

- Link to IoT press release

- Link to video

- Link to Internet of Things page in

- Link to Internet of Things page in SCN