New Business Models In Manufacturing
2 August 2017
Business models within the manufacturing industry continue to evolve and alter as servitisation grows in popularity. There is a growing realisation within the industry that using new customer services to complement their core operations can lead to diversified income streams, more long-term relationships, greater innovation and, ultimately, more contracts for work.
But what exactly is servitisation? The Manufacturer magazine describes it as: “… a transformational and competitively disruptive business model for manufacturers – moving from a focus on products, production and transaction business, to one a more service-centric model.
“It requires manufacturers to find new ways to connect their business, predict service and have the insight to respond to customer needs. By shifting to a more valuable and richer service-centric model, manufacturers can grow, create new revenue streams, increase margins and mitigate risks.”
This essentially means that manufacturers are more active across the entire customer journey. Design, maintenance, repair, fitting and installation are all separate stages of one purchase. Now, manufacturers are increasingly ‘staying with’ their customers as each phase takes place. This higher level of service will, hopefully, lead to an increase in both sales and customer retention. It will also allow business to gather more accurate data on customer behaviour and needs.
Adopting new technology can help manufacturers fulfil the servitisation agenda. The opportunity to successfully obtain and analyse data will go a long way to understanding who your customers are, what they want and how their needs might have changed. New company-specific software will allow warehouses to predict when they need new stock; factories to see their levels of raw materials; supervisors to spot technical or mechanical issues before they become bigger problems.
Servitisation also requires companies to make adjustments to their sales and marketing processes. They must engage directly with customers, note how they use their products and be able to anticipate their future needs.
It's an exciting time of change within the industry; a time that is to be embraced not feared. Manufacturers must also place a large amount of focus on attracting and retaining employees with the right skills to utilise this technology properly.
These new and emerging technologies are going to help us compete on the international markets to secure bigger and better deals. It will allow our manufacturers to better understand their customers and adapt to their needs. Combining technological advances with our traditional pool of hard-working candidates will ensure that our manufacturing and engineering industries and both productive and profitable.
If new technology in manufacturing and engineering has affected your recruitment needs, me and my team would love to discuss our highly qualified, available candidates with you. We recruit across a wide range of jobs titles – from entry level to senior executives. Click here to contact us.
Written By Michelle McLaughlin