There’s gathering momentum in the manufacturing industry, as enterprises increasingly leverage insights from data to transform into digital businesses. Today, Enrique Andaluz, director of strategic business development, Worldwide Discrete Manufacturing at Microsoft, writes about what’s next for his industry in his third post in a series about the Internet of Things in industrial manufacturing. “This rich data gives manufacturers the insights that not only help capture new revenue, but also provide an opportunity to seize competitive advantage by selling products as a service, rather than selling only products as traditional manufacturers typically do.”
Andaluz notes that, though the top performing manufacturing companies now earn more than 50 percent of their revenues from services, that’s about to change: “I expect this percentage to increase significantly as we are now at the tipping point of breakthrough transformation, where manufacturers move from product-centric, transaction-based business models to service-centric, relationship-based business model enabled by products-as-a-service.”
Andaluz offers examples of this, such as the work Microsoft has done with Rockwell Automation to leverage Microsoft Azure IoT services for secure remote access to real-time information from a variety of distributed manufacturing assets. Check out the post on the Microsoft Enterprise Discrete Manufacturing blog.