Gone are the days when the industrial manufacturing value proposition was relatively simple: industrial manufacturers made products and delivered them. Now, the industrial manufacturer’s job does not end with delivery. Driven by ever-more-demanding customers and supported by the widespread uptake of the Internet of Things (IoT) and the emerging power of machine learning and artificial intelligence, industrial manufacturers are developing new capabilities to track huge volumes of data generated by thousands of devices and are adjusting their service depending on the circumstances. They must be responsive in real-time, always-on, and adaptable.
In short, just making an excellent product is no longer good enough. Industrial manufacturers must be able to collaborate with their customers from discovery through design, service, and well beyond. To take its place in the new experience economy, the industrial machinery and components industry must embrace dramatic business transformation driven by the adaptation of technical, cultural and organizational change.
Why? Because customers demand service as they undergo their own transformation into fully digital service providers. Their customers are demanding the same of them. The result is a wholesale change in how industrial manufacturers should approach and interact with customers to ensure an optimal experience through every customer interaction point.
The path forward is clear – and complex. It requires a keen awareness of external forces as well as a sharp focus on internal strategic priorities. Externally, the world is facing huge social, economic, and environmental challenges that promise to reshape the industrial landscape. Simultaneously, customer expectations are rising, digital transformation continues to present organizational challenges, competition is coming from unexpected quarters, and the globalization of markets and talent requires new levels of flexibility.
We see successful companies focusing on five strategic priorities:
- Be customer-centric
- Serve the segment of one
- Embrace digital smart products and solutions
- Implement the digital supply chain and smart factory
- Develop service-based business models