manufacturing transformation driven by external forces [infographic]

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PTC believes the global manufacturing industry is in the midst of a fundamental transformation, and is being driven to rethink how it creates and services products by seven external forces. And the industry agrees: 68% of manufacturers expect to undergo major business transformation over the next 3 years. Read this article in the Manufacturing Leadership Journal for more detail: http://www.slideshare.net/ptc/transforming-the-relationship-between-products-and-services-ptc-mfg-journal2013

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Page 1: Manufacturing Transformation Driven by External Forces [Infographic]

MANUFACTURING TRANSFORMATION DRIVEN BY EXTERNAL FORCES

PTC believes the global manufacturing industry is in the midst of a fundamental transformation,  and is being driven to rethink how it creates and services products by seven external forces. 

And the industry agrees: 68% of manufacturers expect to undergo major business transformation over the next 3 years.

TRANSFORMATION

DIGITIZATIONConverting analog product and service information to digital formats able to be easily leveraged across the value chain

in the use of 3D printing and other new types of additive manufacturing technologies

over the next three years, manufacturing execs expect

GLOBALIZATIONGeneral shrinking of the world driven by technology that eliminates economic and geographical divisions and opens new markets

manufacturers embracing a “design, build and service anywhere”philosophy will grow 125%

3 years

years:

2016byglobal product development – leveraging geographically-distributed product design teams – will almost double.

Enforcement of governmental rules, NGO policies and industry standards related to the environment, health, safety and trade; such as the conflict minerals mandate deadline for May 2014

REGULATION

of C-level executives say global product compliance will be the most developed method to coordinate strategy and planning

{63%}

PERSONALIZATIONDelivering tailored products and services at scale to serve fragmenting customer demand

of manufacturing executives will apply Voice of the Customer initiatives to better understand their customers

over

SMART PRODUCTSIntegrated systems of hardware and software where value may be created through software-enabled enhancements, capable of sophisticated human-to-machine interaction, self-diagnostics and service data capture

over half of manufacturing executives plan to develop networked or “smart” products to create a feedback loop that incorporates customer data to provide insight into customer needs.

in

the number of companies using remote diagnostics to understand how their products are performing in the field will grow by over 40% in three years

40%

CONNECTIVITYPervasive “internet of things” – often mobile – embedded with sensors and individually addressable to enable sophisticated monitoring, control and communication

{77%} {56%}of manufacturing CEOs believe that enhancing service is a key factor for competitiveness and intend to harness service execution feedback to improve service value propositions by 2015

plan to establish service as a profit center

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

3.9%

3.2%

1.2%

$195M

$160M

$60M

$96M

$96M

$16M

2.4%

2.4%

0.4%

Hypothetical manufacturer with $5 billion in annual revenue and 20% profit margin would experience:

INCREASED REVENUE

INCREASED REVENUE

STRATEGY & PLANNING

SERVICE

STRATEGY & PLANNING

SERVICE

MANUFACTURING OPERATIONS

MANUFACTURING OPERATIONS

REDUCED COSTS

REDUCED COSTS

Moving these from moderate priority to high priority shows results:

QUANTIFYING THE IMPACT OF TRANSFORMATION

The data above comes from a PTC and Oxford Economics global research study of manufacturing executives across a range of industries and business functions. For more information and to access the full Oxford Economics report, visit:

www.ptc.com/topics/manufacturing-transformation/oxford-research/