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July 10, 2017
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The Obligation for Servitization in Manufacturing Industry

Servitization in ManufacturingThere’s a shift in manufacturing that is not only demanding companies change their business models, but also innovate more quickly than ever before. Servitization, or selling services in addition to normal product offerings, has created a challenge for competitive organizations to rethink how they approach new and existing customers.

One Stop Place to Shop

Whether it is fitting products with sensors, connecting to Internet of Things devices, or crowd sourcing quality assurance from social media, there is a lot more going on in manufacturing facilities than the simple supply chain of yesterday. When you add globalization and ecosystems that have to be connected from all parts of the world, companies are more often finding themselves in situations where their traditional data solutions are not enough to help them compete.

Extending the value of the product is not the only reason companies are embarking on this servitization journey. Happy customers aren’t those that just buy once, and remaining engaged with clients in the long term requires this kind of comprehensive model. With a more reliable revenue stream, and greater interactions with customers, servitization is quickly surpassing the trend phase, into a necessity.

Big Data tips the Scale

Although the challenge is big, the business results are even bigger. Clear visibility into supply chains, capturing historical data that is normally trapped in silos, reducing costs, improving margins on finished products, and quicker time to market all allow manufacturers to expand into new services that extend the value of the company’s product. No product alone will come without its need for maintenance, repairs, or upgrading. This is why manufacturing clients are not just looking for a final product, but a full-service solution. Along with this tremendous growth potential, comes a new set of data initiatives.

Relatively inexpensive sensors can gather and frequently transmit data along many steps in the manufacturing supply chain. Through a manufacturer’s service offering, these sensors could be leveraged to provide information to clients in order to give organizations critical insights into the products they buy. This also means there is a great deal of real-time sensor data-in-motion that has to be ingested, analyzed and distributed to the appropriate people. Combine that with the historical analytics that won’t fit into legacy platforms, and manufacturers are equipped with the right tools to scale their business.

Find out how manufacturers are using new methods as machine learning with Hortonworks to create better products, offer new services, and be first to market. Learn more, today.


Brian says:

Sensor or cheap as you mention. The challenge for manufacturing companies and those using IoT devices is having someone capable of interepting the data. While binary sensors are easy (on or off) things like pressure or temperature sensors require a bit more experience to interpret. Machine learning and AI will definately help solve this problem. Great post.

komal varshney says:

Thanks for sharing, this is really amazing

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