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IDC FutureScape: Worldwide Manufacturing Product and Service Innovation 2018 Predictions

IDC FutureScape: Worldwide Manufacturing Product and Service Innovation 2018 Predictions

This IDC study provides IDC's top 10 predictions for manufacturing product and service innovation for 2018."It's not data deluge itself that is driving interest in innovation accelerators — it's the common challenges and business drivers that manufacturers face every day: enterprise quality, understanding customer needs, improving productivity, and ensuring a good customer experience. Machine learning, combined with IoT and cognitive analytics, will become a tool for effectively managing these challenges," said Jeff Hojlo, program director, Product Innovation Strategies."Manufacturers are actively applying innovative technologies to their service processes and starting to see measurable results. Companies that haven't yet started experimenting with augmented reality, service bots, or blockchain for improved customer engagement will fall behind their peers quickly as this technology continues to evolve rapidly," said Heather Ashton, research manager, Service Innovation and Connected Products Strategies.

Please Note: Extended description available upon request.


IDC FutureScape Figure
Executive Summary
IDC FutureScape Predictions
Summary of External Drivers
Predictions: Impact on Technology Buyers
Prediction 1: By the End of 2021, 25% of Global Manufacturers Will Apply Machine Learning to Data Across Product Development, Supply Chain, Manufacturing, and Service for More Rapid Decision Support, Improved Quality, Differentiated Products, and Innovative Business Models
Associated Drivers
IT Impact
Guidance
Prediction 2: By the End of 2019, Only 25% of Global Manufacturers Will Have Reached the Managed Stage of Omni-Experience Transformation by Sensing and Responding to Customer Needs More Effectively, and the Remaining 75% Risk Customer Attrition, Revenue Decline, and Slower Growth
Associated Drivers
IT Impact
Guidance
Prediction 3: By the End of 2019, 50% of Manufacturers Will Be Collaborating Directly with Customers and Consumers Regarding New and Improved Product Designs Through Cloud-Based Crowdsourcing, Virtual Reality, and Product Virtualization, Thus Realizing up to a 5% Year-Over-Year Increase in Revenue
Associated Drivers
IT Impact
Guidance
Prediction 4: By 2019, 60% of Manufacturers Will Have Integrated Their PLM and PIM Systems for the Continuous Improvement of Product Design and Customer Experience, Thus Increasing Their Customer Satisfaction Scores
Associated Drivers
IT Impact
Guidance
Prediction 5: By the End 2020, 65% of Manufacturers Will Be Using Simulation and Digital Twins to Operate Products and/or Assets, Reducing the Cost of Quality Defects and Service Delivery by up to 25%
Associated Drivers
IT Impact
Guidance
Prediction 6: By 2019, Generative Design and Biomimicry Will Be Used by 25% of G2000 Manufacturers to Augment Design and Engineering Decisions, Resulting in an Improvement of up to 30% in Product Development Cycle Time and up to a 5 Percentage Point Gain in Market Share
Associated Drivers
IT Impact
Guidance
Prediction 7: By 2020, Global Manufacturers Deploying Blockchains for Product Design and Service Delivery Will Have Improved NPI Cycles by up to 30% and Will Have Increased Service Contract Sales by up to 25%
Associated Drivers
IT Impact
Guidance
Prediction 8: By 2020, 50% of Global OEMs with Connected Service Offerings Will Have Incorporated Augmented Service Execution and/or Remote Management, Thus Improving Service Margins by up to 30%
Associated Drivers
IT Impact
Guidance
Prediction 9: Through 2020, Augmented Reality and Mobile Devices Will Drive the Transition to the Gig Economy in the Service Industry, with "Experts for Hire" Replacing 20% of Dedicated Customer- and Field-Service Workers, Starting with Consumer Durables and Electronics
Associated Drivers
IT Impact
Guidance
Prediction 10: By the End of 2018, Global Manufacturers, Through the Use of Service Bots Throughout the Service Life Cycle, Will Have Reduced Customer Service Costs by up to 10% and Will Have Improved CSAT Scores by up to 3 Points
Associated Drivers
IT Impact
Guidance
Advice for Technology Buyers
External Drivers: Detail
Accelerating DX: Technology-Centric Transformation Altering Business and Society
Pace of Change: Technology Capabilities Enable Sustainable Change at the Speed of Digital Business
Human Versus Machine: The Impact of AI and Automation
Sense, Compute, Actuate: The New Data-Centric Paradigm
Platform Disruption: Unleashing Digital Innovation's Power for Scale
Empowering the Material World: Revolutionized Processes Expand Technology Reach
Shifting Economics: Changing Value Structures and the Rise of Digital Capital
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