Manufacturing in the age of servitization
Agility. Nimbleness. Pivoting fast. If you’re a manufacturing executive, hearing these terms in a strategy meeting will either make you scoff, or reach for your antacid. While there is a digital revolution under way that is transforming just about every global industry, the notion of transformation within manufacturing can be a bit more problematic. Your business model, especially as a discreet manufacturer, is built on a significant investment in physical, amortisable assets – ones that often have decades-long lifespans. Applying the digital mantra of “fail fast; fail often” to the manufacturing sector? Well, to quote former NASA Flight Director, Gene Kranz, “failure is not an option.”
Will your industry be Uberised?
There may be a sense that these physical assets, which are at the heart of manufacturing, create a certain buffer – a barrier to entry – that helps to protect manufacturing from the same kinds of digital disruption that so many other industries are experiencing. In fact, in a recent survey on digital transformation in the UK, we found that manufacturers were least likely to say that their industry would be disrupted in the next two years.
Manufacturer’s can’t, for instance, quickly build a fleet of taxis or network of hotels, right? But then there’s that recurring nightmare where you wake up one morning to find your entire industry has been “Uberised.” That you have been Air-B-and-Beaten by a lean, well-funded newcomer.
No need to break out in a cold sweat just yet, though. You may not be aware of it yet, but many of you are already on the road to digital transformation, just by doing what you do best: using technology (sensors, automation and connected machines) to drive down costs and boost efficiency, to reduce cycle times and increase output. Through all of your processes, you’re creating data – lots of it. And with that data comes the digital opportunity. The question is: are you ready to get the most out of your data?
Maximising your data return: are you being served?
As more of your manufacturing environments become “smarter” with connected assets generating data, you gain much more granular insight into processes – not just yours, but also those of your supply chain partners and customers. With that level of insight, manufacturers can offer a whole new array of services to support their customers. Some forward-thinking manufacturers, such as Rolls-Royce and ThyssenKrupp, are even able to create entirely new service business models based on their data.
But are your data and your employees up to the challenge? Are the new apps developed for your operational and customer-facing systems built on a single data model, allowing them to work seamlessly together? If the answer is no, while you might be seeing incremental benefits, you may not be getting the most out of your data. In other words, while your data may be helping you improve, your competitors’ data is helping them transform and, in some cases, even disrupt your industry.
Purpose-built applications in the cloud
That’s why we’re bringing you integrated solutions powered by Microsoft Dynamics 365: the next generation of intelligent business applications that enable your organization to grow, evolve and transform to meet the needs of your customers and capture new opportunities. Dynamics 365 delivers new, purpose-built applications in the cloud and helps to bring together vital company information on a single data platform, making it easier to build applications that can do things like connect customer needs with your production cycles, or perform predictive and proactive maintenance in the field.
Building the right apps to make the most of your data requires both a deep technical and industry knowledge. This is why many leading manufacturing organisations turn to Microsoft Services to help them in their transformation journey. Our team of manufacturing experts work with Dynamics 365 customers, assessing their technology and business processes to understand their business drivers and goals, before optimising the technology for their specific business. We help those customers develop and implement a tailored plan, including adoption and change management best practices, to reach those goals quicker. Whether that’s leveraging your data, making sense of the next generation of ERP and CRM technology, or discovering new opportunities for servitization, our Microsoft Services team will work with you plan and execute a program that helps you achieve your vision.
Are you ready to find out more about what’s possible with Dynamics 365 and how Microsoft Services can help you make the most of your investment? It starts with our new webinar Appreciating the Role of Change Management in Dynamics 365. Here we’ll give you insights into how you can ensure employee adoption of the new ways of working and embed continuous improvement into business as usual. If you want to learn more about what’s new in Dynamics 365, come to our First Look in London.
Watch on-demand: The role of Change Management in Dynamics 365
See what happened at Innovation Nation the Dynamics 365 first look event
