Smart technologies - new product feature or new business segment?
From mechanical engineering companies to customer advisors, there is no getting around digital, “smart” services if you want to set yourself apart from the competition. But digital offerings are not an end in themselves. Much more important than technological feasibility is the question: What benefits can a digital offering offer my customers? What are possible application scenarios? And last but not least: What is the relationship between benefits and (investment) costs?
Product managers have always followed this maxim of customer benefit when developing their portfolio, and digital offerings should not be exempt from this. Whether and where smart services are suitable for successfully positioning themselves on the market depends largely on the effect that is to be achieved. New product feature or a completely new service portfolio? The four types of digital services defined by the VDMA make it easier for machine and plant manufacturers to decide.
What benefits can a digital offering offer my customers? What are possible application scenarios? And last but not least: What is the relationship between benefits and (investment) costs?
Stage 1: Smart functions for the existing product
The market is changing and your products must be able to withstand this development pressure. Adding digital functions to existing products and services is therefore the logical first step for many companies. If, for example, your best-selling machine is to be increasingly used in networked production halls, a connection to the cloud is essential.
This category includes all digital functions that are fully integrated into an existing product. The purpose of these services is not so much to open up new business or customer areas. Rather, they are usually necessary adjustments or enhancements that ensure the product remains competitive. There are no quantum leaps with this type of digital service – neither technologically nor in terms of customer benefit. Smart additional functions can improve this incrementally, but do not open up completely new dimensions of benefit.
Stage 2: Supplement the existing product
Digital services that extend the existing product portfolio go one step further.portfolio with new, digital services and thus open up additional application scenarios. In this context, we also speak of complementary services.stions. Classic examples arend software solutions that are are independent of the “machine tool” product, but only become effective in conjunction witht the full benefit to the customer.
Think of monitoring or IoT operator models, for example: these are perceived by the customer as independent solutions and sold as such, but their purpose is closely linked to the primary product – the system, the wood-cutting machine, the robot.
Such amodel requires mechanical engineers to have more skills in the development of digital solutions. Competencies that may first have to be built up within the company. The potential Advantages lie but obvious: software solutions and operatorseibermodele open up an additional source of income that is not ininstead of but in addition to the primary product.
However, as with any product, the same applies here: So that your customer is ready for for this additional product the added value must be correspondingly high. Consider Sou should therefore consider carefully where it is worth expanding your product portfolio to include digital services – and where it is not.
Products in the "digital intermediaries" category are clearly moving away from the purely functional level; they can open up completely new business areas and customer segments.
Stage 3: Digital service offering as a bridge builder
Despite their independence, complementary services are always secondary products – they are used together with a system or machine tool. soldmachine tool in order to increase its productivity or avoid breakdowns.
The third type, the “digital intermediaries” steps the digital solution emerges from the shadows of the primary product and is now itself in the Spotlight. Engineering software that focuses not only on individual machines, but also on upstream and downstream processes, still has a connection to the primary product. However, it is not bought because of this connection. On the contrary, it may even happen that the customer does not use any of your established core products – he or she has chosen your software because it best meets the specific requirements.
Data-supported process optimization is another example from this field of digital bridge builders. There is still a clear link to your primary product. However, the smart solution has already emancipated itself to a large extent. Even if there are competitors’ milling machines in the production hall, the digital solution still fulfills its purpose.
Products at this level of integration are thus clearly moving away from the purely functional level; they can open up completely new business areas and customer segments. However, good preparatory work is required for this to succeed. What are the current needs? in the market? From the customer’s point of view, are digital services the best way to address? Are there already corresponding solutions on the market? Do we have the necessary Know-Howto offer a better alternative? Where and under what conditions can we integrate this externally if necessary?
If you have a convincing answer to all these questions, digital intermediaries have enormous potential. However, expert knowledge is usually required here. Get support on board right from the conception phase before you invest in a large-scale smart project that doesn’t pay off in the end.
Stage 4: On new paths
The supreme discipline in the development of smart services is genuine digital innovation. Services that are completely are independent of your previous product world. If, for example, Amazon suddenly starts to offer servers via the cloud This has very little to do with the basic “online book trade” product.
Accordingly, you must also consider the potential customer benefits separately from existing products. You want to use digital innovations to conquer new business areas, develop alternative business models and diversify your offering. fize – not in the details, but fundamentally.
This step requires extremely good Market knowledge, inventiveness and, last but not least, a portion of courage. However, anyone who succeeds in developing new digital solutions with a high level of customer benefit can be almost certain to be successful. the effort pays off: your solution is innovative precisely because it does not yet exist on the market. The much-vaunted disruption potential smart technologies cannot be dismissed out of hand, but not every company will find the associated investment worthwhile. worthwhile.
Can it be a little smarter?
The future is digital – this also applies to traditional industries such ase mechanical engineering. Investments in smart technologies secure competitiveness in the long term and can even open up new business areas. However, the principle of “a lot helps a lot” is not always the means to success. To digital service portfolios sustainable and cost-covering need to build up machine and plant manufacturers a strategy.
We help companies to find the optimal level of digital services for IWe will find the right solution for your individual needs and objectives. We will be happy to advise you in a non-binding initial consultation and assist you with the development of your digital services. From individual product functions to digital realignment.
