Although digital transformation (DX) is defined differently for manufacturers, depending on industry, size of company, or value chain, a common reason for DX is improved product and service innovation. Manufacturers can pursue advanced innovation approaches today and in the near future because of the rapid development of platform technologies, namely, cloud, mobile, analytics, and social, and innovation accelerators such as cognitive analytics, Internet of Things (IoT), 3D printing, and augmented reality (AR)/virtual reality (VR). Perhaps most game changing is the ability to track the quality and performance of connected products, processes, and people across product development, supply chain, manufacturing, and service. Simply put, it is finally possible, through these technologies, to truly manage the life cycle of products and their servicing and continue to improve them over time.
Manufacturers today have the opportunity to truly transform product and service innovation. While the predictions offered here largely focus on the near term to midterm (2017–2020), the impact of many of these predictions will be felt for years to come as product and service innovation continues to evolve across the industry.
Below are the top 10 predictions for worldwide manufacturing product and service innovation from IDC Manufacturing Insights:
- Prediction 1: By 2020, 60% of global manufacturers will be in the process of integrating their product, supply chain, and service systems for optimization of products and the customer experience.
- Prediction 2: By 2018, 30% of manufacturers with field service operations will use embedded intelligence to drive customer satisfaction and product design that yields higher profitability than their peers.
- Prediction 3: By 2018, 40% of manufacturers across the industry will use social business, mixed reality, and 3D printing tools to democratize design and enhance open innovation.
- Prediction 4: By 2020, 60% of discrete manufacturers will use digital twins of connected products with analytics to track performance and usage for better product and service quality.
- Prediction 5: By 2019, 75% of global manufacturers will leverage the cloud for key product innovation processes, and 25% will replace their on-premise PLM systems.
- Prediction 6: By 2018, augmented and virtual reality technology will become standard tools for product and building designers, engineers, and marketers at 30% of Global 2000 companies.
- Prediction 7: By 2020, manufacturers that combine machine learning with human intelligence for customer engagement will capture 20% greater revenue in their sales renewal cycle.
- Prediction 8: By 2018, manufacturers that use automated assistance technology in the service life cycle will see a 25% productivity gain.
- Prediction 9: By 2020, manufacturers that use data from IoT sensors as components in smart contracts will increase their service margins by five points.
- Prediction 10: By 2020, 20% of complex installed equipment will autonomously report their own health, request service calls, identify design improvements, and validate warranty claims.
Guidance for IT and Business Leaders
To learn how you can apply these predictions to your business, please refer to the guidance outlined for each prediction found in the IDC FutureScape: Worldwide Manufacturing Product and Service Innovation 2017 Predictions report (Document on IDC.com).
Click here to learn more about what IDC can do for senior business leaders and IT executives as they move through their digital transformation journey. As always, we invite you to comment or send along any questions to email@example.com.
We look forward to engaging with you throughout 2017 and beyond!
Jeff Hojlo & Heather Ashton