Digitalisation does not stop at physical products. Cars, machines, lights - once purely mechanical or analogue - are now increasingly intelligent, networked and data-driven. The integration of IoT technologies is transforming traditional products into digital solutions - with numerous benefits for users. But for manufacturers in particular, the real leverage often lies elsewhere: internally.
While direct customer benefits are in the spotlight, the internal added value of digitally enhanced products often remains under the radar. Yet this is precisely where there can be enormous potential for increasing efficiency, improving processes and innovation. We support manufacturing companies in identifying and realising these internal opportunities in a targeted manner.
Admittedly: Revenues from the direct sale of digital functions or services have so far often remained manageable. The greater leverage often lies in using the data and digital capabilities gained strategically within the company - for example for product improvement, process optimisation or as a basis for new business models.
A good example: the connected car. For drivers, it brings convenience functions such as infotainment or navigation services. For the manufacturer, on the other hand, it opens the door to completely new offers such as car sharing models or pay-per-use tariffs. And third parties, such as insurance companies, can also develop customised tariffs based on vehicle data.
What is often overlooked: The same digital intelligence that makes products more attractive to customers can help manufacturers to make their processes and services more efficient, sustainable and customer-centred.
Digital technologies such as IoT, cloud platforms and mobile computing form the foundation for product digitalisation. This gives manufacturers three key levers for internal added value:
Digital features allow existing products to be upgraded and diversified, e.g. via modular extensions, updates or new services. The result: a dynamic product that grows with the life cycle.
Data from the product in the field provides valuable insights for development, service, sales and maintenance. Processes are improved on the basis of data - from preventive maintenance to the targeted further development of new features, but end customers also come into direct contact with the manufacturer for the first time in some cases.
Digital products enable alternative monetisation models, such as pay-per-use or product-as-a-service. Customers no longer pay for the product itself, but for its use or a defined output.
At adesso, we support manufacturing companies in a structured way on their way to becoming product-based process and innovation drivers with a practical three-stage model:
Which digital functions already exist? Where is usage data already being generated - and how could it be better utilised internally? Together, we analyse the current situation and identify realistic fields of application with internal added value.
Not every use case is equally useful - at least not immediately. We help to evaluate the most promising approaches and prioritise the internal use cases that can be implemented in the short term and are strategically relevant.
What resources and competences are needed to implement the selected use cases? In this phase, we create a concrete roadmap including an action plan to realise the full potential of digital products internally.
Thinking about digital products only from the customer's perspective is not enough. Used correctly, they offer manufacturers new ways to increase efficiency, make services more intelligent, systematically drive innovation and enter into direct contact with the end customer. The good news is that if the right questions are asked and consistently pursued, it is often possible to get started more quickly than expected.
Would you like to find out more about how you can create internal added value with digitally enriched products?
Our team will be happy to support you with analysis, strategy and implementation.
-> Link to com2m platform
Dr Olaf Neugebauer
