The production, sale, and service of equipment are the traditional business model of many hardware-oriented industries. Digital, however, promises to be a game changer for all segments, whether product, project, or process industries.
Machinery companies have started to innovate their business models. One-fourth of respondents to McKinsey’s Periscope Machinery and Industrial Automation survey reported that their companies have digitized their service, spare parts, and consumables business, and more than two-thirds are planning to do so.
A higher commitment to digital results in business success. The more digitally mature a company is, the better its performance is along two key indicators: TRS and revenue growth. Though most companies across industries have ventured into the digital space on some level, less than one in ten are highly mature, and these are the companies reaping digital’s largest benefits. Compared to the least mature, the most digitally mature companies see three-year TRS rates nearly three times larger and five-year CAGRs more than four times larger.
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By Jürgen Meffert, Mark Patel, and Rupert Stuetzle
In this article McKinsey attempts to examine the possible effects of the war and its ramifications on the key requirements for a more orderly net-zero transition. Explores the war’s potential effect on key sectors and how shifts in energy and finance markets could play out in the aggregate, both globally and within major regional blocs.
The shift from standalone hardware to smart, connected products is pervasive—and it’s here to stay. Forward-thinking hardware companies are taking leadership positions in a new era of product development. Will you be one of them?
It’s interesting to reflect on the opportunities which were imagined back in 2010, and which regularly appear on today’s supply chain agenda. Some progress has been made over the past decade, but there are still plenty of early observers to be convinced, and early adopters who haven’t realized that real-time information alone will not necessarily deliver competitive advantage.