This blog highlights the top 10 manufacturing product and service innovation technology predictions for enterprise executives through 2021.
Product and service innovation continues to digitally transform organizations across industry. Manufacturers need to consider how to apply 3rd Platform technologies such as cloud, analytics, and mobile, as well as innovation accelerators like IoT, blockchain, augmented reality/virtual reality (AR/VR), and cognitive computing to their business. Our research shows a focus today on unifying the product and service innovation process, more closely collaborating with extended value chains and customers, and, in 12+ months, on leveraging new technology to improve the collaboration, analytics, and security across connected processes and products.
The opportunities for manufacturers to digitally transform through product and service innovation continue to multiply as new technologies mature and adoption of 3rd Platform technologies proliferates. My colleague, Jeff Hojlo, and I have identified ten of the top areas in which digital transformation will impact product and service innovation for manufacturing organizations in the coming years. While the predictions offered here focus on the near term to midterm (2018–2021), the impact of many of these predictions will reverberate for years to come. In detail:
- Prediction 1: By the end of 2021, 25% of global manufacturers will apply machine learning todata across product development, supply chain, manufacturing, and service for more rapid decision support, improved quality, differentiated products, and innovative business models.
- Prediction 2: By the end of 2019, only 25% of global manufacturers will have reached the managed stage of omni-experience transformation by sensing and responding to customer needs more effectively, and the remaining 75% risk customer attrition, revenue decline, and slower growth.
- Prediction 3: By the end of 2019, 50% of manufacturers will be collaborating directly with customers and consumers regarding new and improved product designs through cloud-based crowdsourcing, virtual reality, and product virtualization, thus realizing up to a 5% year-overyear increase in revenue.
- Prediction 4: By 2019, 60% of manufacturers will have integrated their PLM and PIM systemsfor the continuous improvement of product design and customer experience, thus increasing their customer satisfaction scores.
- Prediction 5: By the end of 2020, 65% of manufacturers will be using simulation and digital twins to operate products and/or assets, reducing the cost of quality defects and service delivery by up to 25%.
- Prediction 6: By 2019, generative design and biomimicry will be used by 25% of G2000 manufacturers to augment design and engineering decisions, resulting in an improvement of up to 30% in product development cycle time and up to a 5 percentage point gain in market share.
- Prediction 7: By 2020, global manufacturers deploying blockchains for product design and service delivery will have improved NPI cycles by up to 30% and will have increased service contract sales by up to 25%.
- Prediction 8: By 2020, 50% of global OEMs with connected service offerings will have incorporated augmented service execution and/or remote management, thus improving service margins by up to 30%.
- Prediction 9: Through 2020, augmented reality and mobile devices will drive the transition to the gig economy in the service industry, with "experts for hire" replacing 20% of dedicated customer- and field-service workers, starting with consumer durables and electronics.
- Prediction 10: By the end of 2018, global manufacturers, through the use of service bots throughout the service life cycle, will have reduced customer service costs by up to 10% and will have improved CSAT scores by up to 3 points.
To register for the on-demand web conference on these 10 predictions or to learn more about any of the IDC FutureScape Web Conferences, please visit: https://www.idc.com/events/futurescapes
You can find full context around these predictions in the newly published document, IDC FutureScape: Worldwide Manufacturing Product and Service Innovation 2018 Predictions (Document#US43153217) on idc.com .
Co-Author: Jeff Hojlo, Research Director,
Product Innovation, IDC Manufacturing Insights