Industry study: Why companies rely on software-defined products
Traditional industry is increasingly enhancing its products with software-controlled functions. Every second company expects this to provide more flexibility in use. More than 40 percent also see opportunities for better maintenance, supporting data analyses and cost reductions in software-supported products. However, in order to be successful here, medium-sized companies in particular still need to do the groundwork and digitize their products professionally.
This is shown by the latest global industry study "Spotlight Future 2024". On behalf of PLM provider Aras, 835 managers in the USA, Europe and Japan were surveyed.
"Modern industrial products can be adapted to changing user requirements over the course of their life cycle with the help of software. Breaking up the static product concept brings advantages for industry and users," says Jens Rollenmüller, Regional Vice President at Aras. The desire for more flexibility in product adaptations as well as the possibility of better maintenance and permanent data analysis are the main motivators alongside cost efficiency. "Industries such as the automotive industry are increasingly relying on software-controlled functions, also to tap into additional sources of revenue. One example of this is subscription models for additional functions such as seat heating," explains industry expert Rollenmüller.
The increasing integration of software and physical products is reflected in sales. While around a third of companies currently generate at least 25% of their turnover with digital business models, more than half of those surveyed plan to increase this proportion to at least 25% in the next five years. The willingness to expand digital business models is particularly pronounced in the UK and France. Every second company there already generates a significant proportion of its turnover with digital technologies. The DACH region is in the middle of the field here, while Japan is still cautious.
Digital business models with great potential
The results of the Aras study show just how important business models such as Product-as-a-Service (PaaS) and Data-as-a-Service (DaaS) already are: 76% of companies worldwide already offer PaaS or are planning to do so. DaaS is even more widespread at 85 percent.
"With such offers, companies can react to market changes in a targeted manner and increase their turnover at the same time. This means they are better equipped to deal with crises. In addition, the transformation to digital business models ensures greater predictability and efficiency in day-to-day business," says Aras manager Rollenmüller.
Digital business models are also being implemented in production. Around a third of companies offer individual configurations down to batch size 1, and just as many are in the process of implementing them. Industry expert Rollenmüller: "The aim of the smart factory is to deliver customized products at the speed of mass production. Digitalization makes this mass customization possible on a large scale, although we have found that SMEs in particular still need to do some development work here to avoid being left behind."
Source: www.aras.com
