The Digital Manufacturer
Resolving the Service Dilemma
The Cisco survey of more than 600 manufacturing senior decision makers in 13 countries includes the following key insights:
- Seventy-nine percent believe digital disruption will drive impact at their companies in the next 3 years.
- Eighty-six percent say the transition from product-centric to services-oriented revenue models is a core part of their growth strategies. However, only 29 percent of respondents indicated services would grow faster than products in their firms.
- Complexity is holding manufacturers back. The top inhibitor to transitioning to a service model is the difficulty of managing a two-front "war," that is, products and services simultaneously.
- The services journey and digital journey are now converging. To unlock the full potential of the services model, manufacturers need to digitally transform their businesses by connecting people, process, data, and things. Digital transformation is critical to accelerate transitioning to a services model so that manufacturers can earn a greater share of the potential VAS in the marketplace.
- Recent economic analysis by Cisco reveals the payoff for a $20 billion manufacturing firm that digitizes is a profit upside of 12.8 percent over the next three years, and 19 percent over 10 years.
Read our thought leadership to learn more about the payoff of digitization and the journey to help get your there.
- The Digital Manufacturer: Resolving the Service Dilemma (PDF - 3.3 MB)
- The Digital Manufacturer in Asia (PDF - 1.9 MB)
- Resolving the Service Dilemma (Infographic) (PDF - 51 KB)
- The Digital Manufacturer in Europe (PDF - 1.9 MB)
- Manufacturing Industry Maturity Assessment Tool