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IDC FutureScape: Worldwide Manufacturing Product and Service Innovation 2019 Predictions

IDC FutureScape: Worldwide Manufacturing Product and Service Innovation 2019 Predictions

This IDC study provides IDC's top 10 predictions for manufacturing product and service innovation for 2019 and beyond."Engineering and R&D teams also realize that to increase their product's success rate, they must work with an extended internal business and technical team, as well as suppliers and partners, on a digital innovation platform, not simply a PLM system. These teams must also consider demand and customer data at an early stage of product planning and ideation to complement the work they already do, getting input from a select group of customers. Taking this unified, service-oriented, demand-driven approach to innovation will enable them to work faster, deliver quality products more consistently, and more accurately understand customer needs," said Jeff Hojlo, program director, Product Innovation Strategies at IDC."Rising expectations from customers are not a new phenomenon. However, manufacturers have a new sense of urgency to react as competition for these customers becomes fiercer. No longer is the manufacturer the only provider for service on equipment. To extend relationships with customers beyond the sale of equipment or a product, manufacturers must innovate the services they offer to customers. To transform the service business, manufacturers will need to leverage technology and innovation accelerators such as machine learning and artificial intelligence to better understand customers, deliver customized service experiences, and predictively resolve issues," said Aly Pinder, program director, Service Innovation and Connected Products.

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: Driven by Dynamic Demand and Empowered by Data, 30% of Manufacturers Will Use Innovation Marketplaces by 2022 for On-Demand Services and Software That Raise Margins by up to 5 Percentage Points
Associated Drivers
IT Impact
Guidance
Prediction 2: By 2024, 50% of Manufacturers Will Network Related Product and Asset Digital Twins into Digital Twin Ecosystems for a Systems-Level View of Their Business and 5% Reduction in Cost of Quality
Associated Drivers
IT Impact
Guidance
Prediction 3: Enabled by AI and Machine Learning, by 2021, 15% of Large Manufacturers Over $3 Billion Will Use Generative Design and Innovation Bots to Enhance Design and R&D Options That Improve Speed to Market by 50%
Associated Drivers
IT Impact
Guidance
Prediction 4: By 2023, 40% of Manufacturers Will Have Tied Innovation and Product Life-Cycle Management to S&OP Systems to Meet Customer Demand and Needs More Effectively, Thus Raising Product Success Rates by 25%
Associated Drivers
IT Impact
Guidance
Prediction 5: Driven by Demand for Product Personalization, 50% of Manufacturers Will Have Integrated Simulation and Configuration Tools with Customer Profile Data by 2024, Thus Achieving up to 2% Gains in Revenue
Associated Drivers
IT Impact
Guidance
Prediction 6: Threatened by a More Demanding Customer Base, 50% of Manufacturers Will Deploy a Dynamic Service Parts Stocking Model to Enable Near 100% First-Time Fix Rate by 2023
Associated Drivers
IT Impact
Guidance
Prediction 7: Aided by On-Demand Video Learning Tools, by 2021, 75% of Manufacturers Will Provide Their Service Teams Access to Searchable Video Content via Mobility and Wearables to Drive Increased Productivity
Associated Drivers
IT Impact
Guidance
Prediction 8: Resulting from Demand for Hyper-Customized Customer Experiences, 30% of Manufacturers Will Provide Personalized Dashboards for Customers to Schedule Service, Learn About Products, and Collaborate by 2023
Associated Drivers
IT Impact
Guidance
Prediction 9: By 2021, 90% of Manufacturers Will Leverage Real-Time Equipment and Asset Performance Data to Self-Diagnose Issues in Advance and Trigger a Service Intervention to Avoid Unplanned Downtime
Associated Drivers
IT Impact
Guidance
Prediction 10: By 2023, 40% of Manufacturers Will Leverage IoT-Connected Products and Artificial Intelligence Tools to Validate Warranty Claims Preventing Claims Submitted in Error by 80%
Associated Drivers
IT Impact
Guidance
ADVICE FOR TECHNOLOGY BUYERS
EXTERNAL DRIVERS: DETAIL
Rising Customer Expectations: More Convenience, Customization, and Control
Sense, Compute, Actuate: Turning Data into Value
Platforms, Platforms, Platforms: Industry Competes for Innovation at Scale
The Race to Innovate: Speed of Change, Delivery, and Operations Separates Thrivers and Survivors
Reimagining the Material World: Revolutionized Processes Expand Technology Reach
Legacy Inertia: Retrofit the Old into the DX World
Emerging Autonomy: Learning to Live with AI
Learn More
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