Capping IT Off

Capping IT Off

Opinions expressed on this blog reflect the writer’s views and not the position of the Capgemini Group

Six Business Cases for IoT Part 2: Improve Safety

The U.S. Bureau of Labor Statistics reports more than 270 million occupational accidents per year. In Germany,  the Bundesanstalt für Arbeitsschutz und Arbeitsmedizin (BAuA) estimates the number of occupational accidents at 900.000 per year. The cost of these accidents is defined in terms of direct and indirect costs. The American National Safety Council estimates the average direct costs for occupational accidents is $4.800. In Germany, workplace injuries cost the employer on average €3.300 per incident.
Work-related accident and fatality rates are reported per 100.000 workers. On average, a transportation company with 10.000 workers will claim 1.700 accidents per year at a cost of ca. €6,8 million.  A company that is involved in industry machine installation, repair and maintenance will report 1.600 occupational accidents per year and incur direct costs of ca. €6,4 million.
Many of these accidents can be prevented with IoT and Connected Service.  The most common causes of industrial injury are poor ergonomics, manual handling of heavy loads, misuse or failure of equipment, exposure to general hazards, inadequate safety training and clothing. By monitoring machine and vehicle performance, the company can trigger preventive maintenance and decrease machine failure. Furthermore, the machine or vehicle data can also provide insights into equipment usage. When the data indicates the machine is being misused or abused, a variety of interventions can be triggered including immediate alerts or periodic retraining. Every 1% reduction in workplace accidents can decrease accidented relatde costs for a company with 10.000 workers by ca. €66.000 per year.
The German Kraftfahrt-Bundesamtes (KBA) reports 43,9 million registered vehicles and 2,3 million accidents per year. The economic impact of traffic accidents in Germany is reported at €31 billion per year, or €14.000 per accident on average. The economic impact of traffic accidents in the U.S. is an incredible $871 billion and the vehicle fatality rate in the U.S. is 13,6 - more than double the rate in Germany.

A German company with a managed fleet of 1.000 cars will claim 190 accidents per year at a cost of ca. €2,7 million. A 1% reduction in the number of accidents per year can save the company with a fleet of 1.000 vehicles €270.000.
The World Health Organization lists the top causes of car accidents: distracted driving, drunken driving, wreckless driving, night time driving, inexperienced driver, vehicle defect, speeding, and weather.  IoT with Connected Service can address all vehicle accident factors. By monitoring vehicle condition, the manufacturer or insurance company can identify potentially dangerous issues like bad tire condition or oil leaks and take action to repair the deficiency before it causes an accident. Likewise, the vehicle data can be used to evaluate driver behavior and trigger appropriate interventions to reduce the likelihood of an accident. When the data indicates the driver is not adjusting to the road or weather conditions, the system can send tips and alerts immediately to the driver or his vehicle. In critical situations, when the data indicates erratic or dangerous behavior, police and emergency vehicles can be proactively dispatched to the vehicles location.
Enterprising manufacturers and insurance companies can capitalize on the measurable benefit of vehicle safety monitoring. In addition to selling a fleet of trucks or a series of machines, the manufacturer and insurance company can offer safety monitoring services made possible by IoT to decrease accidents.

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Michael Capone

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