NEW YORK - Aug 27, 2013
Capital equipment manufacturers have reached a critical 'tipping point' where service levels and innovation will dominate revenues and be the key competitive differentiator, according to Infor, the leading provider of business application software serving more than 70,000 customers. Infor's prediction is based on the key findings below of the IDC Manufacturing Insights' white paper on the global capital equipment manufacturing industry.
Key IDC Findings
IDC Manufacturing Insights Quote
"There is little question that heavy equipment manufacturers, recognizing the trend of extended asset refresh cycles by the operators and owners of their products, are looking at services as a way to both bolster customer satisfaction and drive incremental high-gross-margin revenue. Indeed, not only will heavy equipment manufacturers invest in improving services delivery, but the balance in many companies will shift from 'products and services' to 'products as service platforms,'" says Simon Ellis, practice director for IDC Manufacturing Insights.
"Equipment manufactures now realize that in order to have sustainable growth and reduced business risk, they must have a holistic service management and aftermarket strategy that is fully synchronized with manufacturing," said Warren Smith, global industry director, Infor. "No longer can manufacturing and after-sales service exist as islands, if customers are to receive the service and satisfaction they expect and demand."
"Manufacturers must incorporate service requirements right at the start of designing the product, as well as optimize the manufacturing and sales processes to ensure service excellence. The aftermarket is now the future growth market."
"Integrating the 'as-assembled configuration' to the management of service parts and maintenance personnel, effective communication with field engineers, maintaining the 'as-serviced' status and accurate, timely billing for repairs are the new battleground for manufacturers. "
"If a product is a platform for delivering services, then the technology that supports that product has to also support the services that follow. The technology that helps increase the competitive edge in this new arena will need to be fast, agile and specialized for the equipment industry. It will need to span the entire lifecycle of the equipment, from manufacture to aftersales service, in one integrated solution."
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Infor is fundamentally changing the way information is published and consumed in the enterprise, helping 70,000 customers in 194 countries improve operations, drive growth, and quickly adapt to changes in business demands. Infor offers deep industry-specific applications and suites, engineered for speed, and with an innovative user experience design that is simple, transparent, and elegant. Infor provides flexible deployment options that give customers a choice to run their businesses in the cloud, on-premises, or both. To learn more about Infor, please visit www.infor.com.
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