Digital technology has integrated into modern product manufacture to a great extent.
Connectivity to digital services and the IoT (Internet of Things) means that devices are smarter and more capable. This is such a common thing, at such a rapid rate of expansion, that digital processes are almost second nature.
Industrial equipment manufacturers need to embrace digital technology to avoid falling behind other competitors. This means new strategies and attitudes to digital tech integration in some applications. The better the holistic solution, the better the profits down the line.
Digital products need digital processes and solutions to appease a growing number of digital customers.
Digital technology doesn’t just come into play with the products themselves. There is a much wider chain to consider. Companies need to look at the broader value chain, from the research and development side of the company to the marketing.
Digital technology provides new solutions and greater efficiency across the board. It helps with planning and design, the manufacturing process and the interactions with buyers.
Manufacturing processes contribute to increasing efficiency and consistency in the production line. This could mean more goods of improved quality. Digital interactions with customers through marketing and sales provide a new connection to consumers. The promotion of both the products and the connectivity of the service increases the appeal.
The first step is to identify the shortcomings and find the easiest way to close the gap on other companies.
It is easy to create a bold plan of the perfect future for a company finally embracing digital technology in product design, manufacture, and distribution. This holistic approach highlights the potential of connectivity and digitization on a wider scale.
There is often a big gap between that ideal solution and the current landscape. The clearer the gap between the present and the future, the easier it is to formulate a plan of attack.
Companies need to look into the processes that are necessary, perhaps even mandatory for modern digital integration. Then there is the need to work a dual scheme with digitization and a new business model.
All steps need to be active, fast and adaptive to catch up. There may be a long road towards improvements, but the route may alter over the years.
Adaptation and effective growth are essential if industrial engineering companies are to succeed with digitization.
The growth of digital technology in products and services has only just begun. There is clear since that digital business can help to expand companies great by 2020 and beyond. Some forecast 10% rises in profitability in these companies by 2020, with further expansion to 2025.
The rate of expansion and success can depend on the type of business. Automotive companies are now expected to increase their EBITDA (earnings before interest, taxes, depreciation and amortization) by 31%.
Heavy equipment companies, however, could see a rise of as much as 78%. Those that start now have the chance to get ahead of a trend and reap greater profits. Those that hesitate may struggle.