Connectivity and servitisation go hand in hand for manufacturers

Servitisation is at the forefront of business strategy discussions for many in the manufacturing industry. Most manufacturers would like to adopt a services approach in addition to their traditional sales model; but the challenge is to create connectivity between the two.

In his article, Connectivity and servitisation deliver success for manufacturers, Fabrizio Battaglia, Head of Manufacturing at HSO, explains how true connectivity, in conjunction with servitisation, can deliver significant benefits for manufacturers who have traditionally focussed on selling products.

How to create connectivity

‘Are customer communications and experiences shared with every relevant department within the organisation?’ is a question manufacturers must ask themselves. Similarly, is relevant information communicated throughout the whole operation and supply chain?

Manufacturers that tackle these communication challenges will be best placed to take advantage of opportunities to develop new services and build sustainable new revenue streams.

ERP provides that connectivity

The first step to creating connectivity within your organisation is putting the right technology in place. This is where enterprise resource planning (ERP) software plays a key role by linking information from customers, suppliers and partners.

Collated information can be fed into systems like Microsoft Dynamics AX, where parameters relating to product lifecycle management, or service and maintenance, can be set up. These parameters will then alert manufacturers to problems, sometimes before incidents happen, allowing for proactive maintenance.

ERP and servitisation

To enable servitisation, manufacturers need to look at how the data collated from ERP can be used in conjunction with other technologies. Big Data and the rise of connected devices that drive the Internet of Things (IoT) can be used to deliver significant business benefits.

Armed with this valuable data, businesses can make informed decisions about where it would be appropriate for them to introduce new innovations and services. This approach helps manufacturers offer more to their customers, improve supplier and customer relations and increase levels of loyalty.

HSO is an expert in Microsoft Dynamics AX, a comprehensive ERP solution that enables manufacturers to work effectively, manage change, and compete globally. For our updates, follow us on Twitter at @HSO_UK.

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