Shifting to service-based business models is the biggest trend impacting all industries

The shift from product- to service-based business models is the key trend impacting all industries today. Traditional product companies are retooling to become software-driven enterprises to respond to digital natives. Smart hardware is delivering a broad array of new intelligent services, from autonomous cars to remote health monitoring to the smart-home appliances that manage our daily lives.

Discrete manufacturers able to shift models to harness the power of data and analytics, combined with software and new business models, will deliver rich customer experiences, building life-long loyalty and profitable annuity streams for their companies.

These are some of the insights gathered from a recent Capgemini Research Institute report, a survey of 1,000 traditional maker organizations across sectors including auto, consumer products, med tech, industrial, high tech, and energy with annual revenues ranging from $1 billion to $50 billion.

The research shows that organizations with well-defined visions and strategies for intelligent services, or progressive organizations, are already realizing benefits that include new, profitable revenue streams; increased customer loyalty and satisfaction; greater efficiency; and reduced total cost of ownership. Here are some results leaders are seeing:

• 77 percent improved product performance
• 79 percent accelerated R&D
• 83 percent improvement in NPS customer-satisfaction scores
• 83 percent reduced servicing cost
• 84 percent intelligent products and services, leading to lower CO2 emissions.

Perhaps the most impactful finding in the report is the rapid pace at which these traditional companies are making the shift to selling intelligent services. Of the 1,000 organizations surveyed, 88 percent say they plan to deliver intelligent services in the next three to five years, up from 35 percent today.

The potential value creation from the move to intelligent services and new business models is tremendous, according to the research:

• 43 percent of organizations expect more than 20 percent of their revenue to come from intelligent services
• 46 percent expect to gain up to 20 percent of their revenue from intelligent services.

Learn how you can seize the intelligent products and services opportunity to unlock new sources of value for your customers and shareholders.

Discover more: https://bit.ly/3RnE5QW