Lexmark’s Azure-based IoT Solution for Connected Products helps manufacturers move from selling products to delivering advanced services

Connected products range from medical devices to mining gear, and embedded sensors can collect vast amounts of product performance data during testing and operation. However, turning that data into transformative actionable insight is a challenge few organizations have overcome.

Having built a robust Internet of Things (IoT) solution on Microsoft Azure for its own products, Lexmark, a global provider of cloud-enabled imaging solutions and IoT technologies based in Lexington, Kentucky, had firsthand experience analyzing and acting on data from its more than 1.2 million connected devices around the world. The company began exploring ways to help other manufacturers use IoT technology to transform their own businesses. 

Customizing the digital journey for implementation in months instead of years

Lexmark, an early adopter of IoT, has delivered predictive services to maximize device uptime, asset optimization to drive return on investment (ROI), and flexible device-as-a-service offerings to its customers for two decades. In 2019, Lexmark modernized its internal systems, moving from premises-based technology to a cloud-based solution built using Azure services, which provided better system performance, simplified maintenance, and world-class security. 

In its own digital transformation, Lexmark focused on identifying its business needs and then creating solutions to support them. The company recognized that other manufacturers could benefit from what they created. “Our solution starts with the outcome and the business problem in mind,” says Demetrios Karathanasis, Global Portfolio Director for Lexmark IoT Solutions at Lexmark. “We’re a fellow manufacturer with more than 20 years of experience in smart, connected products. We baked in the lessons learned from our own IoT journey.”

Lexmark’s internal IoT system is based on Azure and uses several Microsoft products. The company commercialized the Connected Products Solution, which includes the Optra IoT Platform, prebuilt accelerators, and consulting services. Lexmark’s status as a peer actively using its own product—not just a software company or consultant promoting a specific technology—sets it apart in the eyes of fellow manufacturers. Its relationship with Microsoft enhanced its credibility and helped its teams develop advanced capabilities. “Microsoft is a really important backbone for us, and coupled with Lexmark’s level of depth and competence, we deliver capabilities that not everyone can show,” says Sven Dellagnolo, Senior Director of Global Revenue Marketing at Lexmark.

The Lexmark team understands that no two digital transformations are alike and that individual manufacturers have unique needs. So the team developed prebuilt AI and machine learning models with Azure AI, business process templates, and dashboards that customers can select and easily tailor, avoiding the significant learning curve that comes with starting from scratch.

“Part of what differentiates us is that we’ve been able to offer accelerators. This makes our solution a lot more meaningful for customers,” says Sudhir Mehta, Global Vice President of Transformation Solutions at Lexmark. “Normally a customer would buy a specific software product from one company and then engage a system integrator. Our one-stop solution is more compelling, more cost-effective, and quicker to implement. We’re able to help our customers deploy in months instead of years.”

Maximizing ROI and delivering a better customer experience

The Lexmark IoT Solution for Connected Products offers customers the same predictive services, asset optimization, and systemic innovation that Lexmark used to increase its own profits by 25 percent and improve engineering efficiency by 30 percent in about two years. Some customers deployed the system in as little as 90 days using the accelerator suite and consulting services and are realizing significant savings and ROI.

For example, DEXIS has “the industry’s most comprehensive selection of diagnostic imaging products,” including cone beam computed tomography, intraoral scanning, X-ray generation, intraoral radiography, and treatment planning software. Over 150,000 dental offices trust DEXIS solutions globally. Dentists want and need peace of mind when investing in their medical equipment. Partnering with Lexmark, DEXIS is increasing equipment and doctor uptime, driving service efficiencies, and improving the customer experience with predictive services and advanced data analytics.

 With technology deployment in just 90 days, DEXIS has gained actionable data insight to jump-start business transformation across service delivery, sales, engineering, and product management. The solution facilitates remote diagnosis and resolution of device issues, which will help the company in the near future to reduce the need for on-site service by 30 percent, reduce support call time by 30 percent, and reduce device downtime by up to 50 percent. Additionally, sales teams use new data insights to engage more closely with existing customers and create new revenue opportunities. Overall, the initiative will deliver a 6x ROI by implementing this solution.

In another example, a company that makes commercial-industrial air handling units is on a mission to deliver comfort in an equitable manner. Industrial facilities with no or underpowered heating, ventilation, and air-conditioning (HVAC) create uncomfortable working conditions that negatively impact employee safety and productivity. For success, the solution must be cost-effective and able to operate in low-bandwidth locations. A connected ecosystem is needed, so the company is partnering with Lexmark.

Fans that are connected to Lexmark’s Optra Edge monitor and manage climate locally based on sensor data and current environmental conditions. The Optra IoT Platform collects and analyzes data over time in the cloud to provide insights and visualizations on climate control and cost optimization across locations. The result is a new industrial climate-control solution that is good for employees, improves productivity, and limits carbon dioxide emissions with much lower acquisition and operating costs than traditional HVAC systems.

Developing IoT capabilities to remain agile and improve the customer experience

As both the developer and a user of its Connected Products Solution, Lexmark refines and improves the offering based on its firsthand experience. Lexmark expects that its use of Microsoft products will help it push the limits of IoT technology and appreciates the Microsoft approach to finding solutions for business needs. The company plans to continue using IoT data to solve the problems that manufacturers face every day, and as a result, its own image is evolving. “We aren’t being seen as someone who makes printers,” says Dellagnolo. “We’re being seen as a technology-led, agile, and advanced manufacturer.”