The transformation of manufacturing: how manufacturing becomes a service industry

The production company consists of a factory, and only a small part of the time has passed. Computers, automation, the Internet, and the current digitization and the diversity of the digital economy continue to change the characteristics of manufacturing companies. Production is still the focus, but the rapidly evolving digital organization surrounding it is emerging, with the focus on product marketing and business model expansion.

Uwe Vieth, Senior Director of Sales at ServiceNow, said: “It’s really exciting to see how various industries face the digital age.” In manufacturing, marketing and business models have traditionally been maintained for a long time. In this case, this disruption It is especially obvious in some places. Vieth said: “One thing has become a problem: products and markets alone cannot achieve today’s growth and differentiation.”

The results of the “job transformation” research conducted by IDG on behalf of ServiceNow this summer can also be seen that the activities of today’s manufacturing companies are largely controlled by digitalization. For example, the tendency to work outside the company’s boundaries is rated above average compared to other industry branches. The author of the study wrote: “It may also be because the work and communication fields of the digital factory will undergo tremendous changes, and most importantly, it will enable wireless interaction between employees and “smart” machines.

The issue of the urgency of the digital transformation of processes and workflows provides a similar situation. Half of the companies and IT decision makers surveyed in the manufacturing sector believe that the urgency is high or high-only the financial sector is eager to increase the digitalization of its processes. Uwe Vieth believes that the main reason is that the business model of the industry is developing digitally, which of course is closely related to the increased demand for design.

Uwe Vieth said: “The existing business model is being completely overturned and questioned.” In the entire manufacturing and automotive industry, expand and upgrade products through services. Companies like Mercedes or BMW now no longer see themselves as car manufacturers, but as mobility service providers.

Vieth said: “This is not only the sale of the product, but also the goal that the company can achieve by using the product.” The decisive factor of the new business model is not only product quality, but also parameters such as throughput time, operating time, and availability. All of these must be digitally recorded, analyzed and optimized, which of course means new requirements for IT.

“Drilling into” products through service in turn requires greater efforts in customer service. Customer service should not only be digital, but ideally, it should also be innovative. Service innovation is the key word here. Vieth explained: “The main thing is that the product itself remains the same, but the way the product or service is provided to the customer has changed.” Other value-added services provided by third-party providers must also be considered. The goal is of course to obtain more sources of income from it, while also distinguishing itself from the competition.

However, upgrading the business model through services is a task, and the company still needs to do a lot of work. “If we focus on digital transformation and always aim to increase productivity and achieve better customer loyalty, then we are talking about the valuable experience of employees and customers. All these are complex information and work processes, just work processes, “He said. Uwe Vieth.

However, today, many workflows are still not digitally mapped, full of frictional losses, and sometimes managed in application silos. However, in reality, they should be organized across departments and can be orchestrated throughout the process. Most companies adopt classic CRM methods and pursue an omni-channel strategy, so they can provide services to customers through all possible communication channels, and can use self-service options to help them solve problems. But this method is getting closer and closer to the limit.

Vieth said: “Experience shows that most customer queries cannot be resolved through first-time queries or self-service.” Instead, queries must be coordinated with other teams or back-offices. “To be honest, this kind of communication is currently unstructured through various channels such as email, phone, and chat. However, unstructured communication is usually ineffective or ineffective.”

This is where ServiceNow comes into play with its Now Platform. “Imagine if the process is structured, automated, and mapped end-to-end on the platform, and intelligently integrated with best-in-class solutions in your IT environment, and can be delivered in a modern way through social media channels.” The system “will be implemented through the Now Platform.”

With the passage of time, customer service has evolved from a reactive structure that only responds to customer inquiries to an active system that can solve customer problems before customers request them, and finally develops into a prevention system based on intelligent assessment, IoT components and the Internet of Things Components can identify and eliminate any problems in advance.

For example, in the automotive industry, customer service looks like this: Potential customers interested in a particular model contact the manufacturer through its website to arrange a test drive. On the website, he can choose which communication channel he wants to visit, and then choose WhatsApp. He will also receive the address of the dealer in the area and a suggested date for the test drive. After the test drive, he configured the vehicle on the website according to his wishes and gave the delivery date.

At some time before the delivery date, he re-logged in to the manufacturer’s website to check the order quantity, and spontaneously decided to change the color of the seat cover. After delivery, he wants to go on a ski holiday and uses the manufacturer’s smartphone app to check the range of his ski racks and roof containers. There, he can choose whether to buy or rent a container.

On the way to the ski resort, he considered changing the brand the next time he bought a car, but he didn’t think of a good reason for doing so.