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Gone are the days when the industrial manufacturing value proposition was relatively simple: industrial manufacturers made products and delivered them. Now the industrial manufacturer’s job does not end with delivery.

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Driven by ever-more-demanding customers and supported by the widespread uptake of the Internet of Things (IoT) and the emerging power of machine learning and artificial intelligence, industrial manufacturers are developing new capabilities to track huge volumes of data generated by thousands of devices and are adjusting their service depending on the circumstances.

They must be responsive in real time, always on, and adaptable. In short, just making an excellent product is no longer good enough. Industrial manufacturers must be able to collaborate with their customers from discovery through design, service, and well beyond.

To take its place in the new experience economy, the industrial machinery and components industry must embrace dramatic business transformation driven by the adaptation of technical, cultural, and organizational change.

We have identified five strategic priorities necessary for industrial manufacturing companies to transform their business

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Be Customer Centric

In 2025, industrial manufacturing companies will be able to maintain customer-for-life relationships with shared risk and a focus on long-term value based on a 360-degree understanding of their customers, starting with a holistic view of their customers' business processes and ending with the knowledge of how those customers use the products in their daily operations. Truly customer centric companies will interact seamlessly with their customers on a constant basis through multiple channels, from Web to direct and including IoT connectivity

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Implement the Digital Supply Chain and Smart Factory

Supply chains and manufacturing networks in industrial manufacturing companies will be completely modular and flexible to allow the seamless execution of different manufacturing strategies.

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Serve the Segment of one

Industrial manufacturing companies will be able to deliver completely customized products, services, and solutions that precisely fit the needs of an individual customer based on sophisticated platform, configuration, and mass-customization strategies.

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Deploy Service-Based Business Model

The majority of industrial manufacturing companies’ revenue will stem from services that are based on and built around smart products, the value they deliver, and the data they create. Companies will offer products as a service based on the value delivered to the end customer.

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Embrace Digital Smart Products and Solution

Industrial manufacturing products will shift from being largely mechanical to having more and more digital functionality, allowing even more flexible configuration of products throughout a product’s lifecycle. As a consequence, the value contribution of software will grow significantly.

How to achieve these strategic priorities?

Start with reimagining your business together with your customers. Then build a path for even more optimization and intelligent automation to simplify your business and free up resources to invest in even more digital transformation programs and find new business models and revenue streams.

Most organizations understand what is happening in their business but may not always know why.

They know what’s happening because they have systems that capture operational data (O-data) –about their customer transactions, supply chain, manufacturing, spending, and the activities of their workforce. They can see that data through reports and dashboards. They can see trends and predict what will happen next.


But to influence what happens next, companies need data about the interactions that people have with their products and their business. Experience data (X-data) captures beliefs, emotions, opinions, and perceptions –the “why” something is happening. And when companies know why something is happening, they can make an informed decision about the best way to respond.

To win in this experience economy, intelligent enterprises connect experiences with operations. They use both X-data and O-data to guide their business decisions. Intelligent enterprises collect insights from customers, employees, products, and brands at every touch point. They use powerful technologies to automate and integrate their data, processes, and applications, enabling them to sense risks, trends, and opportunities. And they act on this intelligence across every part of their business.

SAP Business One Intelligent Framework has the strategy, expertise, and solutions to deliver on this vision, enabling intelligent enterprises to turn insight into action.