1. Market Evolution
The first challenge faced is the market evolution challenge of moving from product to service economy. Due to loss of margin on hardware, the shift of moving from a product to a service sales approach has become a very important strategy. In order to increase financial margins and getting closer to the customer, the concept “machine as a service” should be the ultimate goal.
2. The Service Economy Shift
In order to enable the shift to service economy, one needs to reap the benefits new technology such as IoT and data science offers. The new technology has now matured to such an extent that it is available at an affordable cost making IoT and data science two important pillars to support the shift to a service economy.
3. Support the Organizational Model
The third challenge is to consider the organizational model and the way users are empowered and augmented by providing data to people in different levels of an organization. Providing data in a user friendly manner will ultimately increase both knowledge sharing and user performance helping organizations work more efficient and deliver more value.
4. Sustainable Production and Traceability
The fourth challenge is the one of sustainable production and traceability. Since the market and customer demands are becoming more complex, where the shift from mass production to mass customization already has taken place, you need to be able to produce in an environment which is eco-friendly keeping waste at a minimum. The key is to handle more information and data sets to increase versatility and traceability.
5. Social Impact
The last challenge when it comes to digitalization is the social impact, i.e. to sell globally and be able to act local while keeping intermediation of the value chain to a minimum. Globalization of the market has already taken place and one of the biggest benefits is to be able to share experiences across the globe in order to support the local customer and keeping the value chain intact.
We believe that a data driven approach will help you in your digital transformation. With a data driven approach we refer to a strategy where you at an early stage define what services you would like to deliver to your customers and then approach the above challenges in a structured manner in order to enter the era of Industry 4.0. To support you in the digital transformation and at the end a full business transformation, we have invested in a R&D center focusing on the development of applications based on Industrial Internet of Things and data science. ProductInUse, which is the first application developed by our R&D center, is an application which will help you transform your business of product sales into a business of value added services by utilizing the information in your production system. It will enable you to build new innovative service offers tailored to the market segmentation of your expertise, resulting in both an increase of your top line revenue and customers’ performance. To learn more about ProductInUse or our R&D center InUse (formerly OptimData), please visit www.inuse.eu or reach out to me for more information about how Industry 4.0 can drive growth in your business.