7 Forces Driving Manufacturing Transformation

Andrew Rieser
By Andrew Rieser | Co-Founder and CEO, Mountain Point
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To meet anticipated future challenges, 68% of manufacturing executives said they expect their firms will undergo significant business process transformation in the next three years.

In a joint study between PTC and Oxford Economics they identified the following 7 Forces Driving today's Manufacturing Transformation.

  1. Digitization: Replacing analog product and service information with a fully accurate virtual representation that can be easily leveraged across the value chain (engineering, factory floor, service).

  2. Globalization: The general shrinking of the world driven by technology that eliminates economic and geographical divisions and opens new markets.

  3. Regulation: Enforcement of governmental rules, non-governmental organization policies, and industry standards related to environment, health, safety, and trade.

  4. Personalization: Efficiently tailoring products and services to accommodate regional and personal preferences.

  5. Software-Intensive Products: Integrated systems of hardware and software capable of sophisticated human-to-machine interaction, diagnostics, and service data capture, with additional value delivered through enhancements.

  6. Connectivity: Pervasive networks of “things” – often mobile – embedded with sensors and individually addressable to enable sophisticated monitoring, control, and communication.

  7. Servitization: Fundamental business model shift in which products evolve to integrated “bundles” of services capable of delivering new value continuously throughout the customer experience lifecycle.

Do these align with what your manufacturing business is experiencing?  If so, how are you addressing your transformation?

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