Traditionally, monitoring of static equipment always involved periodic testing. There are various names for it but generally, the technologies used for this purpose can be clubbed under nondestructive testing (NDT). Recent research from Frost & Sullivan has found that especially in the oil and gas industry, periodic testing of static equipment is just not good enough. End users have realized that for static equipment the typical time frame for failure is reducing. Assets can fail catastrophically, not only within a few months but also within weeks from being commissioned. Hence, there has been a trend towards moving from periodic testing to continuous monitoring.
We at Frost & Sullivan believe this is a paradigm shift in the inspection industry, especially the NDT industry, disrupting the way these industries function, maybe collapsing a few business models and transforming all existing products, technologies and business models. This trend can also be looked at as convergence of the condition monitoring, industrial automation and the NDT industries. Within this exciting development, business model innovation is of particular interest. Very often companies focus their entire innovation efforts on new technologies or products. Research however suggests that it is business model innovation that provides a higher rate of return and enables differentiation on a sustained basis.
This paper will provide an overview of this trend that we are currently witnessing and cover the transformational growth potential of the NDT industry from disruption to collapse and then transformation.