As digital-age consumers enter the industrial workforce in large numbers, they are causing business models to be redefined and reshaped. The result? A trend toward subscription-based services in manufacturing industries. This interesting topic came to us from Dev Ops in their article, “Machine Learning and Predictive Analytics Are Reshaping Manufacturing.”
What would something like that look like? Visions of widgets being produced and shipped automatically come to mind, but I would think it is a little different. This shift is being referred to as servitization, where manufacturers no longer strictly sell new products but instead sell access to the outcome those products deliver.
To reach full realization of servitization is projected to take up to 15 years. In a servitization model, manufacturers own the responsibility of maintenance and repairs and need to focus on maximizing product up-time, since revenue can only be earned when their products are available to generate output in the field. It is an entirely new world.
Melody K. Smith
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