Manufacturing Transformation

PTC’s CEO started communicating his vision on the transformation of the manufacturing world. The more this vision is being told and shown via numerous examples, the more feedback and questions I receive on this true great vision. So what is this vision on the 7 driving forces all about? PTC – via Mr heppelmann – states that the following 7 forces are driving manufacturing change:

  1. Digitization
  2. Personalisation
  3. Globalisation
  4. Regulation
  5. Connectivity
  6. Software-intensive Products
  7. Servitization

Let’s take some examples just to show how manufacturing is changing. Software-intensive Products for instance play an ever increasing role in the mechanical manufacturing world. Companies like Continental used to (and still do) develop windscreen wipers but today this product is more and more becoming a software driven product manipulated not by the user but by weather conditions. Manufacturers do realize that added value and profit can be driven more via software than by mechanical advancements. This results in creating business units whereby software engineers develop together with mechanical engineers a new product that can be driven by several software options that create value.

Another great example is servitization. More and more classical product companies do change from product selling to service selling of a product. This can be in the airconditiong world, the aerospace world, … Companies selling airconditiong are moving away from selling another aironditioning machine to a colling service whereby they guarantuee (to a hotel for instance) a max temperature of 26° C or 18° C guaranteed with an availability of 99% of the time (to be specified). What does this mean for the manufactureer and the buyer? The manufacturer will probably demand a service level agreement whereby the manufacturer will deliver the service, the spare parts, the uptime, etc. The buyer will not negotiate a final price/ product but rather a service that will be delivered.

These 7 forces will change the manufacturing landscape in the next 5 to 10 years.

The full video can be read here:



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