Gary Brooks
Gary Brooks Chief Marketing Officer at Syncron where he is responsible for global marketing and focuses on enabling leading manufacturers around the world transform their after-sales service operations to maximize product uptime.
EDACafe Industry Predictions for 2020 — Synchron
January 16th, 2020 by Gary Brooks
- The majority of OEMs’ businesses will be centered on delivering products-as-a-service by the end of the decade. According to IDC, 40 percent of manufacturers have some sort of IoT project underway [1] However, most OEMs’ deployed products are disconnected, or not IoT enabled. We predict that by 2030, sensor-equipped, IoT-connected products will be the norm, providing OEMs the data and insights they need to make maximizing product uptime and delivering products-as-a-service a reality.
- The majority of OEMs’ businesses will be centered on delivering products-as-a-service by the end of the decade. According to IDC, 40 percent of manufacturers have some sort of IoT project underway [1] However, most OEMs’ deployed products are disconnected, or not IoT enabled. We predict that by 2030, sensor-equipped, IoT-connected products will be the norm, providing OEMs the data and insights they need to make maximizing product uptime and delivering products-as-a-service a reality.
- Flexible consumption models fuel products-as-a-service. Manufacturers can no longer employ a ‘one size fits all’ approach. As consumers flock to usership over ownership, customers will expect the same business models in their place of work. Several industrial manufacturers like BAE, Caterpillar, GE, ABB and more have launched subscription models, and we can expect many more to follow suit in 2020. OEMs will have to adopt new technologies, infrastructure and business processes to meet these new demands.
- Technology will accelerate the shift to delivering products-as-a-service. Leading manufacturers have already recognized that accelerating the transformation to delivering products-as-a-service can only be accomplished if the core of their current service operations – service parts inventory and price management – are fully optimized. Flexible, scalable technology will be a key accelerator and enabler to selling products-as-a-service. Additionally, subscribers expect their equipment to be up and running at all times – putting previously unseen demands on manufacturers’ service organizations. Sophisticated service business transformation technologies, coupled with increasing data-transfer bandwidths (5G), IoT, artificial intelligence and Machine Learning, are paving the way for OEMs to facilitate predictive and prescriptive maintenance, optimize productivity and maximize product uptime more efficiently than ever before.
- Governments and customers will push for manufacturing to be more environmentally sustainable. The way we create value in business today is very linear: we use natural resources to build a product, sell that product into market and dispose of it at the end of its lifecycle. The circular economy, however, aims to reduce waste and the continual use of resources. Adidas, for example, has the Futurecraft Loop shoe where consumers return the shoe to Adidas once they have worn them out and the shoes are repurposed for future Loops. It’s inevitable that this same model will make its way to the manufacturing sector, as governments, consumers and Wall Street will all expect to more sustainable business practices in place.
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