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Over the past few years, there has been a significant shift in the manufacturing industry towards servitization. This involves transitioning from a traditional product-focused business model to a service-oriented one, which has become increasingly popular among companies looking to meet changing customer needs while staying ahead of the competition.

Many manufacturers are now realizing that offering services in addition to their products can not only enhance customer relationships but also drive revenue growth. In fact, according to IDC researchers, digital products, services, and experiences are expected to account for 40% of the total revenue generated by G2000 organizations by 2026.

In this article, you will learn what are the benefits and challenges of servitization for manufacturers, how low-code facilitates the transition towards this approach, and finally how CLEVR, a leading low-code company, can provide successful servitization strategies in field service management for manufacturers.

What is servitization in manufacturing?

The concept of Servitization refers to the transition of manufacturers from only producing and selling products to offering services and solutions that add value to their customers. This business approach allows manufacturers to provide a complete package of services such as installation, maintenance, repair, training, and consulting to create a long-lasting relationship with their customers. By adopting servitization as a business model, manufacturers can generate more revenue streams and increase profitability over time.

What are the benefits and challenges of servitization in manufacturing?

1. Benefits of servitization
Servitization provides a way for manufacturers to differentiate themselves from competitors and offer more value to their customers. By offering ongoing support and services, manufacturers can build closer ties with their customers, which can translate into long-term relationships. In fact, services often have higher profit margins than products, which can help to boost overall profitability for manufacturing companies.
This approach has numerous benefits for manufacturers:

• Differentiation: Servitization provides a way for manufacturers to differentiate themselves from competitors by offering ongoing support and services to customers. This can help to build stronger relationships with customers and increase loyalty.
• Improved profitability: Services often have higher profit margins than products, which can help to boost overall profitability for manufacturers. By offering services alongside their products, manufacturers can increase revenue and profitability.
• Innovation: The shift towards servitization can encourage innovation, as manufacturers look for new ways to add value for their customers. This can lead to the development of new products and services, as well as new business models and processes.
• Long-term relationships: By offering ongoing support and services, manufacturers can build long-term relationships with their clients.

The benefits of servitization are clear, but it is not without its challenges. As manufacturers shift towards this business strategy, they may encounter several obstacles that must be overcome.

2. Challenges of servitization

While servitization offers many benefits for manufacturers, it also presents several challenges that must be addressed for successful implementation. Some of these challenges are:

• Resistance to change: Many companies may be resistant to shift from a traditional product-based business model to a service-based one, particularly if they have a successful product line.
• Investment costs: Implementing a servitization strategy often requires significant investment cost in technology, software, and infrastructure.
• Skills & talents: Servitization requires new skills and talent, particularly in areas such as data analytics, software development, and customer service.
  
  

Servitization in Field Service Management (FSM):

Manufacturers transitioning to servitization face significant changes in their field service processes. In fact, some online service providers have set new standards for customer experience while customers expect high response times. To meet these expectations, manufacturers need integrated workflows that allow them to act quickly and optimize first-time-right execution. Moreover, they need to shift from reactive to preventive maintenance, which is now made possible by new technologies like AI and IoT.

One way to manage the changes in the field service process during servitization is through a low-code field service management solution. This technology provides support throughout the journey, allowing manufacturers to start with their current process without significant changes. Low-code technology also enables fast and easy adaptation to future changes, helping manufacturers to stay agile and flexible.

How can low-code facilitate the implementation of servitization in manufacturing?

Manufacturers looking to implement a successful servitization strategy must invest in flexible technologies and software solutions. Low-code is one the solutions that offers speed, ease-of-use, and the ability to integrate with existing systems. This enables manufacturing companies to deliver new applications quickly and stay agile to future adjustments, ensuring they remain competitive and able to respond to changing customer needs.

It is necessary to mention that low-code technology doesn't have to replace existing systems, in fact, it can be used on top of core systems as an additional layer, allowing manufacturers to build and support custom processes. This approach can help manufacturers to achieve the benefits of servitization without having to replace their entire technology infrastructure.

Moreover, low-code technology can also be used to enhance field service management, enabling manufacturers to manage their field service operations more efficiently. By using low-code, manufacturers can easily build and deploy custom field service applications. This can lead to faster response times, improved customer satisfaction, and reduced operational costs.

CLEVR: The smart choice for manufacturers adopting servitization

CLEVR has developed a highly capable field service management tool that can help manufacturers take the first steps towards servitization. This tool provides end-to-end visibility and control over all the key areas of your field service operations, including dispatching, scheduling, field engineer support, and performance tracking. With CLEVR's main capabilities such as work order operations, engineers work planning, workforce management, intelligent dashboarding and more, the tool is designed to fit your business processes perfectly.

In order to smoothly transition to servitization, it is advised to companies to define which elements of the strategy will be most advantageous for their business. Fortunately, with CLEVR's flexible solutions, manufacturers can selectively incorporate the aspects of servitization that suit their specific needs. Our tools are designed to support all approaches and phases of servitization, providing a customized solution that aligns with each company’s objectives and requirements.

CLEVR can provide expert assistance to customers looking to leverage this powerful technology and transform their businesses. The company has a proven track record of success, especially with the use of Mendix as an underlying platform.

Looking to transform your manufacturing business with servitization and low-code technology? Contact us today to learn how we can help you successfully transition and stay ahead of the competition.

In the dynamic world of manufacturing, the key to success lies not only in efficiency but also in optimizing operational technology (OT). Every second counts, and the ability to harness and analyze the invaluable data generated by machines in real-time can make or break a factory's success. However, the challenge lies not just in collecting massive amounts of data, but in sifting through and saving the necessary information for smarter decision-making.

To meet these needs, industries are revolutionizing their approach by turning to Industrial Edge Computing, a concept that seamlessly connects the hardware on the factory floor to the cloud. This is where innovative solutions provided by Mendix, Siemens Industrial Edge and CLEVR become crucial players. In this article, we'll discuss the elements of Industrial Edge and explore how it is transforming factory management with advanced tools integration.

Understanding Siemens' Industrial Edge Ecosystem in Manufacturing

Industrial Edge Computing is a solution that seamlessly connects the hardware on the factory floor to the cloud, facilitating real-time data analysis. It effectively bridges the gap between physical machinery and digital infrastructure, enhancing both efficiency and responsiveness.

At the heart of this transformative concept is the Siemens Industrial Edge platform. This robust architecture deploys Mendix apps on Industrial Edge devices, serving as the vital link connecting Programmable Logic Controllers (PLCs) to the Siemens Industrial Edge ecosystem. This open, ready-to-use edge computing platform is ideally suited for any manufacturing floor.

The Siemens Industrial Edge platform comprises three core elements:

1. Industrial Edge Hub: This is essentially a global repository where customers can centrally distribute purchased or self-developed apps to multiple management systems, enabling the adoption of machine-as-a-service solutions. Custom applications created using low-code solutions like Mendix can be effortlessly brought into this ecosystem, bridging the gap between consumers and producers.

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2. Industrial Edge Management (Cloud): This software-as-a-service (SaaS) instance of the management system provides a customer-managed system that encompasses custom-made applications, third-party apps, and other solutions from the Industrial Edge Marketplace. It offers easy maintenance and control of edge devices and apps for production sites on a global scale.

1. Industrial Edge Device: These industrial PCs interact with machines on the shopfloor (OT) in real-time and provide access to the data they generate. Through Industrial Edge these devices get their ability to communicate, collaborate, and make informed decisions across various manufacturing units.

The Siemens Industrial Edge ecosystem simplifies the interaction between consumers and producers, effectively bridging the IT and OT gap. Built-in connectors make data easily accessible in a consumable format, paving the way for digital transformation.

The Power of Mendix and Siemens Industrial Edge Integration

Mendix, traditionally linked with manufacturing, lacked a direct connection with machines. However, this gap has been bridged with Siemens Industrial Edge (IE), creating a path to full digitalization and automation.

Siemens IE provides an ecosystem for deploying Mendix apps on Industrial Edge devices, connecting the PLC data to the Siemens IE ecosystem. This open, ready-to-use platform effectively turns raw data from the manufacturing floor into actionable insights for process optimization, predictive maintenance, risk identification, and more.

The Siemens IE ecosystem includes an edge device, edge applications, connectivity services (e.g., to the cloud with Insights-Hub), and an edge management platform, all designed for industrial manufacturers. It elegantly layers complex architecture, making it easy to deploy on any manufacturing floor.

The combination of Siemens Industrial Edge and Mendix, along with partners like CLEVR, is transforming manufacturing. It breaks down IT and OT barriers, improves machinery performance, and enables digital transformation.

How CLEVR helps in bridging the IT-OT Divide with Industrial Edge?

Software creation and machine programming are diverse, using different PLC protocols, such as ladder diagrams, structured text logic (STL), and others. As a solution provider, understanding IT and OT to build solutions is challenging, especially when OT is a new territory. Without comprehensive knowledge of both domains and a suitable framework to connect IT with OT, solution development becomes a heavy task.

Consider an industrial manufacturer producing car engine chassis. They need machine X from an original equipment manufacturer (OEM) to ensure top quality. This machine has an industrial edge device for optimal operation, risk assessment, and machine health monitoring. In this scenario, different companies can collaborate through Edge ecosystem to make informed decisions about their machinery and overall performance synchronization. Both parties control their data sharing and independently manage applications in their local app repository.

Solution partners like CLEVR can play a critical role here, they excel in developing solutions for both OEMs and manufacturers. This underscores the immense strength of domain expertise, backed by cutting-edge technology.
The outcome? A collaboration where different companies can work together, discover latent variables, and optimize machine performance. The Industrial Edge ecosystem effectively links consumers and producers, tearing down the barriers between IT and OT with its in-built connectors.

The Mendix, Siemens, CLEVR partnership is pushing manufacturing into a new era. Seize this digital transformation with real-time data, optimized machinery, and IT-OT collaboration. Reach out to CLEVR to learn how we can help you with our expertise, modernize your operations. Together, let's create an advanced, streamlined, efficient manufacturing landscape. In other words, let’s Build Tomorrow Together.

Today's era of technological advancement has shifted digital transformation from being just a buzzword to an essential pivot for manufacturers. To safeguard their competitive advantage in the fluctuating market dynamics and the ever-evolving customer expectations, it's imperative for manufacturers to develop and execute a robust digital transformation strategy.

The relentless acceleration of technological advancements has left manufacturers at the initial stages of digital transformation. A significant hurdle impeding progress in digital projects is the misalignment between Information Technology (IT) and Operational Technology (OT). This disconnection prevents a holistic view of operations, a vital component for successful digital transformation.

The Indispensable Role of an End-to-End Ecosystem: PLM, MES and Digital Twins

This is where Product Lifecycle Management (PLM) comes into play. PLM plays a critical role in creating an effective end-to-end ecosystem by integrating systems, processes, and people seamlessly. It aids in modernizing IT and OT processes, thus constructing a much-needed bridge in the perpetually changing landscape.

The importance of PLM is emphasized by the anticipated growth of the PLM software market, projected to reach USD 9.22 billion in 2025, showing growth that signifies how instrumental PLM is in steering the journey towards successful digital transformation.

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‘We have one of the biggest and strongest partner ecosystem in our industry. And believe me one thing, we are very well on track to further expand this ecosystem and make our partners even more stronger.’

Marcel Milde- Siemens Partner

In the ongoing narrative of digital evolution, Manufacturing Operations Management (MOM) stands out as a holistic approach to oversee various aspects of the manufacturing process. Within MOM, Manufacturing Execution Systems (MES) emerge as a specific software-based solution, playing a pivotal role in shaping this narrative. Manufacturing Execution Systems (MES) have surfaced as a crucial force. By managing and monitoring work-in-process on the factory floor actively, MES provides real-time data that is invaluable in pinpointing inefficiencies, curtailing downtime, and enhancing productivity. The global MES market, expected to grow to USD 17.1 billion in 2025, testifies to its escalating importance in the digital manufacturing landscape.

The journey of digital transformation in manufacturing also introduces us to the groundbreaking concept of digital twins. These virtual replicas of physical assets are revolutionizing manufacturing processes by enhancing simulation capabilities, improving IT-OT integration, and facilitating efficient data collection. The digital twin market, projected to reach an impressive USD 48.2 billion by 2026, mirrors the profound impact of this technology on the industry.

Streamlining Processes with Low-Code (Business Process Automation)

The pivotal role of low-code in digital transformation cannot be overstated. This technology not only simplifies application development but also proves instrumental in optimizing processes within Product Lifecycle Management (PLM). By breaking down silos and fostering collaboration across various stages of product development, low-code automation enhances efficiency significantly. Its capacity to automate repetitive tasks expedites application development, ensuring swift adaptability to changes and maintaining a competitive edge. The projected growth of the global low-code development platform market, expected to reach USD 45.5 billion in 2025, emphasizes its crucial contribution to driving efficiency in the manufacturing sector.

The digital transformation in manufacturing is a complex process that involves the integration of various elements like PLM, MES, digital twins, and business process automation. These tools are not only enhancing operational efficiency but also paving the way for innovative solutions to longstanding challenges. As we delve deeper into the digital age, these technologies will persistently shape the future of manufacturing.

However, to truly succeed in this transformation, you need a trusted partner with the vision, the expertise, the people, and the solutions. CLEVR, a Siemens and Mendix partner, can be that trusted ally for you. As we continue our journey into the digital age, these technologies and partnerships will undoubtedly shape the future of manufacturing. Don't wait for the future to happen; be a part of building it. Contact us today and let your transformation begin.