A big majority of manufacturers surveyed by Cisco Systems think that digital disruption will transform their businesses in the next three years.
And some of them are a bit stressed about it. About a quarter of those surveyed were concerned about the complexity that results from selling products and digital services at the same time, Cisco reported.
The survey, of 625 senior manufacturing decision makers in 13 countries found that at this point, digital is more an opportunity than a practice.
But what happens after a product is sold is is becoming increasingly important, Cisco said. Digital technologies will allow manufacturers that use it to charge not only for products but for business outcomes, such as plant uptime.
Seventy-nine percent of manufacturers said they foresee digital disruption in the next three years, from the cloud (37 percent), the Internet of Things (33 percent) and analytics (32 percent.)
The survey fond that 33 percent of industrial machine builders were already receiving telemetry from customers plants, and another 56 percent were planning to do so. Only six percent had no plans for this.
According to Cisco s analysis, the payoff for moving from a product only to a product plus services model for a $20 billion manufacturing firm will be 12.8 percent over the next three years and 19 percent over the next 10 years
Photo: Cisco Systems monument (AP Photo/Paul Sakuma)
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