The article that I read was titled, “How Komatsu Innovations keep its Machinery Selling” and it was written in “Business Week” by Kenji Hall. In this article, Kenji Hall discussed a Chinese Construction Company named Komatsu and how it uses technology and IT innovation to help speed up Business ventures and reduce costs. Back in 2001, Komatsu created GPS systems, which they put in every one of their pieces of construction equipment. They used these GPS systems to track where each one of their pieces of equipment were throughout the World and what types of jobs those pieces of equipment were doing. They originally used this information only to prevent theft. Now however, Komatsu has found many ways to use the information from the GPS systems. Through the GPS systems, Komatsu can tell which one of its pieces of equipment has the most wear and tear, and which ones will need maintenance soon. They can also use this information to calculate what the resale value will be when they go to sell the construction equipment that they own. These GPS systems can also track how much is being produced at each construction site. This tells the company where they need to slow down production and also where they need to speed it up.
This IT innovation is huge for the construction industry. By knowing when their equipment needs to have maintenance done, they can complete that maintenance before the piece of machinery completely shuts down. Because of this, all of the workers will be able to stay a lot more productive because they will always be working. If they did not have the GPS system and one of the pieces of machinery shut down, then workers would be sitting around for a while with nothing to do. Now with the GPS system, this will never be the case. This IT innovation is also a big step for construction companies because it will be able to calculate the resale value of all of the construction pieces. This will save the company a lot of time and allow them to complete more tasks than they were able to prior to these GPS systems. Also, the fact that the GPS system can tell the construction sites are producing will really help out Komatsu. It will tell them which sites are moving slowly and also which ones are moving ahead of schedule. This will allow them to allocate their resources effectively and save money without wasting some of their assets.
One other technological advance that Komatsu is using is fuel saving pieces of Construction equipment. One example of this is the diesel-hybrid electric excavator that they created. Items like this will help Komatsu reduce costs while also protecting the environment.
Komatsu is greatly using technological advances and IT to their advantage and they will continue to be better off because of it.
This GPS equipment seems to really help Komatsu stay in touch with their clients and how they use their products. My concern after reading this are the privacy concerns for the construction companies who buy this equipment. Some of the construction companies may not feel comfortable documenting where they are working or the pace at which they are working at. What if a construction company some how got a hold of their rival companies activity? Surely construction companies do not wish to publicize production at construction sites. This GPS seems to highly benefit Komatsu and it's sales team, but what effect does it have on construction companies who compete for projects?
ReplyDeleteI think that implementing GPS devices in all of their work equipment is a really good idea. It is amazing how something that was originally created to prevent theft has turned into a major technological advantage. Upon reading DJs comment I have to agree with him and say that this technology will not be to favorable with many construction companies in the United Sates. An example of my reasoning for this comes from the fairly recent construction project "The Big Dig" in Boston, if people we able to monitor the efficiency of work for that project, it is safe to say that they would not have been a billion dollars over budget. With that said, I really like the idea of being able to see monitor the lifespan of your equipment, maybe someday companies will be able to have their work efficiency as a number when they apply for a project.
ReplyDeleteThis is a pretty cool concept that Komatsu implemented to use on its equipment. It shows how ever expanding knowledge is the way adjustments in advancements can be made. I'm curious to see how other companies that are not construction related may use this idea. I really like the point that DJ made though, its debatable to how other companies would who purchase this equipment would feel knowing that their work process is being tracked. I see a different light on this issue because my father is involved with general contracting and I know that he would not be all too cooperative with an outside source such as Komatsu monitoring the products that he is now operating on different construction and work sites.
ReplyDeleteI have recently read many articles surrounding new usages of GPS systems. I find it extremely interesting that so many different industries are being able to use the system for a large range of activities. Komatsu will definitely benefit regarding production costs and run much more smoothly as a construction company. I am not surprised that Komatsu is a Chinese company because the last two articles I have read discussing IT advancements, China was the origin of the article. It makes me believe that China may be more technologically advanced than the United States. While this article does not deal with a brand new invention, it is still innovative to use existing aspects of technology for new activities.
ReplyDeleteAfter reading this article, it's interesting how Komatsu is able to implement GPS systems in so many different ways and it's another example of how fast the tehnology world is advancing. I'd have to agree with Tara when she says that China could potentially be more advanced than any other country in the world because I recently read Harry's article about the new supercomputer that China invented, and it's incredible to see how far China is coming in a technology aspect. Even the Sellinger School's Business Leader of the Year, Dupont CEO Ellen Kullman, talked today about how China is incredibly good at science and mathematics and how they are advancing so much in the Technology world so we shouldn't be suprised anymore; China is probably the most advanced country in the world technologically.
ReplyDeleteThis is a great way for komatsu to utilize their resources. They are able to benefit from a technology that was built to benefit their customers. If they collect and analyze their data well, they will be able to boost the efficiency of their machines. I found this very interesting as my father has several komatsu excavators for his construction company. I noticed the small screen inside the cab of some of the newer machines but was not aware that it included all of that information.
ReplyDeleteIt sounds that Komatsu’s GPS is more than just a GPS, it sounds like a database system for the company. It’s really cool though to see a system that can prevent theft, give information on available materials, and any maintenance needed especially in the construction business. By giving all this information to the supervisors of Komatsu, it will enable them to compete successfully against their competitors, and help the construction business and business in general to improve their information systems. I see plenty of potential for systems like this in the future of the business world.
ReplyDeleteThis is a very interesting use of technology. I would have never thought that a company could learn that much from their machines externally. I do think it's a little bit odd that they would want to keep track of the private data of companies, but at the same time it definitely works to their advantage to know the capabilities of their machines. They are able to get an insider perspective on their everyday uses and capabilities. Testing a machine in the lab is one thing, but real life usage is completely different and it is definitely beneficial for Komatsu to know how their machines are performing under pressure.
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