This blog lists the top 10 worldwide predictions for manufacturing product and service innovation. These technology predictions are meant to help the enterprise with strategic planning within a typical five-year business planning cycle.
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.
For product innovation success, the future remains augmented and artificial intelligence (AI) powered. Manufacturers were late to leveraging 3rd Platform technologies (cloud, mobile, big data analytics, social business) for engineering and R&D but have ramped this investment up considerably in the past three years. Now these same organizations are considering generative design, which is AI and machine learning applied to multiple data models, to provide increased and improved options during the design, engineering, and R&D process. Data could emanate either from IoT-connected products and assets, social media, manufacturing and supply chain processes, and market and competitive information or directly from customers and partners. This data model will be visualized within digital twins of products, which can be used at an early stage of ideation and design, during enterprise and value chain collaboration, or for the actual operation of products.
Top 10 2019 Predictions for Manufacturing Product and Service Innovation:
- 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.
- 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.
- 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%.
- 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%.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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%.
Learn more about the 2019 Manufacturing Product and Service Innovation Predictions
For context around these predictions, including the IT impact and guidance on how to integrate each prediction in the digital strategy of the enterprise, view the IDC FutureScape: Worldwide Product and Service Innovation 2019 Predictions web conference on-demand.
Jeff Hojlo, Program Director, Product Innovation Strategies, IDC