Value Capture Strategies in Digital Manufacturing PPT

This PPT slide, part of the 27-slide Digital Manufacturing Primer PowerPoint presentation, outlines 2 primary routes for capturing value through digital manufacturing: "Software as a Service and Subscriptions/Licenses" and "Offering Success as a Service." Each route presents distinct strategies for manufacturers to enhance their business models and drive profitability.

The first route emphasizes the provision of Software as a Service (SaaS). Manufacturers can offer subscriptions and licenses for software products that help customers gain insights and analyze data to improve machine performance. This approach targets a broad audience, including both existing customers and potential new markets. By leveraging data analysis, manufacturers can foster innovation and increase overall company profits.

The second route focuses on the concept of "Success as a Service." Here, manufacturers can guarantee specific outcomes for customers, such as enhanced safety and efficiency, while minimizing downtime. This shift in business model may involve selling power by the hour rather than traditional methods. To implement this successfully, manufacturers need to adapt their sales strategies, potentially requiring a dedicated sales force to promote digital products and services.

Additionally, existing sales teams can be utilized to transition to selling data and software-based outcomes. The slide warns that traditional sales methods may be disrupted, as improved machine efficiency could lead to reduced sales of physical products and related services. A critical takeaway is the reminder that the cost of inaction can be more detrimental than the risks associated with transitioning to these new business models. This insight is vital for executives considering the future of their manufacturing strategies.

This slide is part of the Digital Manufacturing Primer PowerPoint presentation.

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