The digital Big Bang has happened and as a result, volumes of digital devices and data are exploding. The digital universe is expanding.
Coinciding with the wholesale digital interlinking of society, transformation of the industrial sphere is one of the world’s current megatrends, affecting companies representing two thirds of global GDP. Creating value with digital isn’t just a simple game of mixing and matching digital technologies. Companies also need to completely reinvent their operating models, production and value chains, becoming what we call Industry X.0 businesses.
Disruption of industrial equipment production is inevitable. It has started and is accelerating.
To compete, industrial equipment manufacturers must reinvent. FAST.
NEW BUSINESS MODELS
There is a profound shift from traditional products and business models to connected products, services & solutions, software & embedded intelligence and platforms to leverage ecosystem(s). These combined create new opportunities to reinvent, differentiate and drive growth. The move to adopt new business models is challenging, with the need to leverage new skills and new approaches.
To drive innovation in recent years, many industrial companies have increasingly been developing innovation incubators and investing in major acquisitions. But while incubators and business units are working ever more closely, there is scope to leverage incubators to strengthen impact. Incubators must be truly integrated with company culture, workforce and operations to maximize innovation impact.
DATA-DRIVEN CUSTOMER EXPERIENCE
Industrial companies have access to masses of data—both in their own information systems and from the wider network of connected assets. Using applied intelligence and analytics, leaders are harnessing the power of data to reinvent ways of working centered around the customer. Our research confirms that while the opportunity is there, significant value potential is not yet being realized. It needs a new focus and new culture centered around the customer.
DIGITIZE ENTERPRISE PROCESSES
Digitization could enable a typical industrial equipment manufacturer with an industry average $28B in revenue and $3.3B in EBITDA to add up to ~$1.38B EBITDA by 2020. Digitizing the enterprise is clearly a priority - in our research, 91 percent of CEOs in industrial companies agree this is a necessity. However, we estimate that only 20 percent of the value potential is currently being realized.
NEW OPERATING MODELS
Traditional vertical and siloed business models, often limited in cost synergies and shared resources are moving to a fluid, balanced matrix model. These new business models allow flexibility of smaller product lines, leverage horizontal capabilities and increase efficiencies while developing new business fast.
Make all components self-monitoring, data-generating and context-aware
Enable intelligent demand sensing
Adopt analytics to inform innovation and monetize insights
Automate and add advanced tech e.g. robotics, artificial intelligence, virtual reality
Embrace multi-dimensional ecosystems and open innovation
Adopt as-a-service, consumption-based value models
Shift from product sell to solution/outcome sell
Create complementary value-add services and new revenue streams while the “Smart Product” is being operated.
Break down silos, reduce fragmentation, drive efficiency
Create flexibility to accelerate time to market
Put customers at the heart of demand-driven innovation – involve them in shaping the product agenda.
Adopt data analytics to anticipate customer demand and monetize insights.
Reimagine and redesign customer experiences through personalization and advances such as immersive, augmented and virtual reality.
Drive loyalty through the value chain to get closer to your customers and keep them close.
We help Industrial Equipment companies digitally transform their business through smart, connected and living technologies, to become Industry X.0 businesses. Industry X.0 businesses not only leverage digital to drive continuous core operational efficiencies, but also leverage combinations of advanced digital technologies to create new, hyper-personalized customer experiences. They successfully combine digital technologies to drive both top-line and bottom-line growth.
Digital Service Factory
Reinvent the product and accelerate the development of new revenue streams through connected product services.
Digital Engineering & Manufacturing
Transform the way products are engineered and manufactured with digital enablers in smart automation, application of the Digital Twin, and connected manufacturing.
Agile Operating Models
Fuel growth in the New. Streamline the enterprise with the digitization of the back office, spend reduction and cost competitiveness, and innovation in platforms and enterprise technology.
Manufacturing applied intelligence with focus on machine uptime, predictive maintenance, warranty, and product performance.
A new market space generated by the combination of new technology and new user needs. End-to-end services targeting consumers desire for mobility.