Home » The Hidden Challenge of Digitalization for Manufacturers

The Hidden Challenge of Digitalization for Manufacturers

Traditional manufacturing companies that produce and sell physical manufacturing, industrial, power, and distribution equipment are going digital.

Many of these traditional manufacturers are shifting towards Digital/Physical Interface products (DPIs).  DPIs are digital and software products that interface with physical manufacturing equipment; manufacturers are now bundling software solutions with their physical products to offer higher value to their customers. Digitalizing manufacturing equipment in this way opens up great market potential, but can be challenging to implement in a physical manufacturing company.

Why digitalize?

DPIs allow manufacturing companies to offer higher value products to their customers. For example, using DPIs, manufacturers can remotely control their machines at customer locations, increasing both customer and manufacturer revenue and reach. They can also allow end users to better customize their products, generate more insights, and reduce their operational costs. By offering this higher end value to users, manufacturers can secure greater competitive immunity in their markets and thus increase their own profit margins.

What is the challenge of digitalization?

Though the advantages of digitalization are clear-cut, many companies making this switch are now facing a major challenge throughout all levels of their organization.  Sellers, marketeers, and management are not on board with this development.

Organizations need to educate their sellers, marketeers, and management on the benefits of selling these DPI solutions, and with developing an approach-to-market thinking that includes digital and physical equipment convergence (DPI).  These marketeers, sellers, and managers do not see the advantages of using DPIs and are not adjusting their own strategic mindsets.

Simply put, many of these teams like selling and marketing what they already know.

So what can you do?

If people within the organization don’t want to adapt to DPIs, then the challenge is transforming the company mindset by demonstrating the advantages of digitalization. Employees can only accept and adapt to change if they understand it. Manufacturers undergoing these changes therefore need to, in effect, “sell” DPIs internally before they can successfully start offering them to external customers.

So the magic question becomes: How can you communicate the advantages of digitalization throughout the organization?

The answer: by simulating the initial obstacles and costs – as well as the resulting advantages. When your people can decide the digitalization strategy themselves, make the investments and later harvest the benefits, the process and why it may be worth it, becomes clearer. They adopt the strategy instead of just having to accept it. This is why Celemi has now launched a new version of its best selling simulation Decision Base, depicting the implications of DPIs. etc

Celemi Decision Base™ now includes an adaptation to account for digitalization in your organization. This adaptation exhibits the long-term advantages and implications of beginning to produce and sell DPIs. Building on Decision Base’s success in developing business acumen in and organization, this adaptation demonstrates why producing and selling DPIs is a smart strategic choice that improves your organization’s customer base and bottom line.

Contact us if you’d like to hear more about how we can help you integrate Digital/Physical Interfaces into your company’s operations.

 

2018-12-14T07:42:34+02:00December 14th, 2018|Uncategorized|