Manufacturers are Transforming from OEM Service, Introducing Digital Services to Brand Management.
Trend

Manufacturers are Transforming from OEM Service, Introducing Digital Services to Brand Management.

Many generation industrialists gradually move towards brand thinking, and then begin to build the ability to use data analysis techniques to capture business opportunities.
Published: Dec 29, 2020
Manufacturers are Transforming from OEM Service, Introducing Digital Services to Brand Management.

In the early days, family OEMs and factory OEMs were everywhere, but nowadays, if you want to rely on OEMs to make profits, you are already facing low-profit margins. Facing global competition, Taiwan's manufacturing industry is currently struggling to transform and develop towards a high value-added operation model. While observing the transformation model of the manufacturing industry, some OEM / ODM operators have gradually moved towards brand thinking and have begun to build the ability to use data analysis techniques to capture business opportunities.

The thinking of brand and service brings higher value to the manufacturing industry. Take Taiwan as an example. In recent years, Taiwan’s manufacturing industry has gradually evolved from simple back-end manufacturing in the past to an integrated front-end distribution channel and manufacturing service-oriented to customer needs. Business model. For this reason, the trend of the manufacturing industry toward information-based services will become more and more obvious. For example, manufacturers will begin to collect information from end-users, analyze and explore the needs of end-users, and then develop products or services that users need.

The transformation of Taiwan's current manufacturers can be roughly divided into two modes. One is the long-term focus on OEM/ODM-based foundry manufacturers. Unlike the past when designing and manufacturing for customers, what customers want to provide, but to help customers think about feasible solutions and divisions early. Advice on how to implement further planning. The other is to use data analysis to create new business models in the B2B market. Through data collection and analysis, we can further understand market feedback and adjust future business models and marketing strategies.

Close to the consumer market

To meet the needs of customers, it has driven the manufacturing industry to use digital systems to establish channels for interaction with customers. Take the current situation of the textile industry as an example. In recent years, the consumer market has sought innovation and change. Global brand channels are now promoting short delivery times and many customizations. The textile industry is facing a deeper sense of production shock, and the order delivery time has been compressed to less than 30 days. The front-end industry and the client’s design proofing timeline are compressed. The textile industry is also beginning to accumulate the communication process and digital information with customers through the digital system. In addition to avoiding duplication of resources and heavy work, it can also shorten the process that took several months. Give more competitive delivery.

Besides, it not only reduces the complicated production cycle but also relies on the accumulation and analysis of the digital system database. The textile industry can quickly grasp the changes in the consumer market through the investment business analysis system. On the business side, it can quickly grasp the sales situation and distribution of the client in the market, or observe the current consumer's hobby of styles, and even predict the future market trend earlier than the client. In addition to designing in line with customer needs, it can also take the initiative to provide brand customers with new style designs and have better bargaining space.

In the past, Taiwan was good at the OEM / ODM services, but it focused on product or process technology development. It had a low grasp of end customers. Although it had high-quality production technology, it had a low grasp of market dynamics and missed more hidden markets. Business. Nowadays, customers and consumers dominate the consumer market, and the needs and preferences of customers are constantly changing. The market has become more mature. More and more competitors have joined the market to improve market competition. Customer service has become a differentiated strategy different from competitors. Important factor. With the maturity of the Internet of Things and sensing technologies, manufacturers have also begun to accumulate data in their products. In addition to optimizing product performance, they also optimize the user experience through continuous iterative updates. In the past, industrialists sold products, but in the future on the product side, there is quite a chance to use the rent-and-sell model for breakthrough innovation.

Data analysis creates new business models

In addition to being closer to the consumer market, successful cases of the manufacturing industry using data analysis to create new business models have also been verified in recent years in the transformation of machinery and equipment manufacturers to machinery and equipment service providers. Nowadays, Taiwanese machinery and equipment manufacturers no longer rely solely on single-machine output as their main business model but are turning to the use of industry know-how to help customers optimize the service experience of production. For example, the machinery and equipment industry accumulate machine operation and process parameters through a digital database, and then provides recommendations for optimized cutting parameters, or establishes an optimized analysis of the equipment predictive maintenance cycle. For example, the sawing machine equipment manufacturer who invested in AI to establish big data analysis in the earliest period has even taken orders from high-end market customers and developed a new business model independent of the original business scope. Market competitors widened the gap.

In the future, manufacturers in various industries will not only need to optimize production lines to introduce automated and intelligent manufacturing processes, but also need to move from low-profit manufacturing OEMs to brand management thinking and enhance OEM / ODM service more added value. And with the data from product sales to the market, we can further plan the future strategic direction to respond to the ever-changing market demand.

Published: Dec 29, 2020 Source :digitimes

  • Manufacturing Industry
  • Industrial Manufacturing
  • Manufacturing Transformation
  • Manufacturing Upgrade
  • Manufacturing Trends

Further reading

You might also be interested in ...

Headline
Trend
Opportunities and Challenges in the Smart Machinery Market
The machinery industry is the development focus of all countries and indirectly becomes a symbol of national competitiveness. The world's major industrial countries with high international competitiveness, such as Germany, Japan, and the United States, have the foundation of precision machinery manufacturing technology and the development of intelligent machinery. The energy of the device. Therefore, it can support the development of its domestic automobile, aerospace, transportation, information, optoelectronics, communications, defense weapons, and energy industries.
Headline
Trend
Motion Control Plays A Key Technology in the Development of the Industrial Automation Market
In the trend of industrial automation, motion control is a key part of it. Automating operations through machines can avoid a lot of human error, and can also speed up production efficiency and efficiency. How to make the machine act according to the command is the application category of machine motion control.
Headline
Trend
5G Changing The World! Four Practical Applications Of Artificial Intelligence And 5G
The world is poised to change forever with the implementation of fifth-generation connectivity for data networks across the world. 5G has been promised to be the savior to any connectivity problems we've had in the past and it's also been highlighted as a path towards a fully wireless future.
Headline
Trend
Towards Smart Manufacturing: The Current Situation and Future of Mechanical Arm Integrated Vision
The world has entered the era of Industry 4.0. robots assist human manufacturing, emphasizing the use of "human-machine collaboration" to move toward smart production. In recent years, the population aging problem faced by developed countries has caused the production costs of industry and manufacturing to increase year by year. Enterprises have deployed automation equipment to improve production efficiency. Various industries have also undergone tremendous changes in this intelligent wave.
Headline
Trend
The COVID-19 Epidemic Promotes the Technology Promotion and Development Trend of Smart Unmanned Factories
The COVID-19 caused a great catastrophe for mankind and suffered heavy losses to the global economy and politics. How to find a model that can sustain economic life and still be able to complete work and life is the biggest challenge of life at this stage. It also urges the industry to more actively move towards the development trend of smart unmanned factories, reduce clustering and contact, introduce unmanned factory technology, and improve production efficiency and control efficiency.
Headline
Trend
The Impact of the Epidemic Detonates Zero-Contact Business Opportunities
Automation technology accelerates the development of the industrial robot industry. In order to maintain and improve productivity, the manufacturing industry accelerates the introduction of unmanned and industrial automation technology. Industrial robots have become a long-term rigid demand.
Headline
Trend
Grasp the Big Business Opportunities of Medical Networking
The medical device industry is transforming. Nearly 80% of medical material companies believe that medical networking is the most important growth opportunity in the future, and 45% believe that cooperation with strategic partners is necessary. In fact, for medical IT solution vendors, the next decade is also an opportunity for their growth.
Headline
Trend
IT and OT Integration Technologies Are Available to Accelerate the Development of Smart Manufacturing
The US-China trade war has triggered a major reshuffle of the supply chain. The global manufacturing industry is facing unprecedented challenges. In the process of transforming smart manufacturing, the biggest problem is the integration of operating technology (OT) and information technology (IT). Only by working with the smart manufacturing ecosystem can we have a chance to survive in the changes and seize future business opportunities.
Headline
Trend
Integrate OT, IT and AI to Promote the Accelerated Implementation of Taiwan’s Smart Manufacturing
Taiwan's IBM announced that it has joined forces with a large domestic solution integrator (SI) to identify the pain points that are difficult to integrate between IT and OT in the manufacturing industry, and uses the IBM Smart Manufacturing 5C maturity model as the blueprint. Both parties will provide pre-introduction evaluation services, depending on needs. However, SI will provide OT and IT integration services, or IBM will provide more data-driven AI value-added services.
Headline
Trend
How to Realize Green Manufacturing In Mechanical Manufacturing?
Green Manufacturing, also known as environmentally conscious manufacturing, is a manufacturing model that considers environmental impact and benefits.
Headline
Trend
In The Decade Ahead, A Combination of Technologies Will Take Important Strides, Forward
As discussed in Tech Trends 2019: Beyond the Digital Frontier, technology forces that are increasingly dependent on advanced connectivity capabilities also are reshaping enterprise architecture.
Headline
Trend
Ready For Aerospace 4.0? Supporting the Next Generation of Aerospace Manufacturing
The effects of Industry 4.0 in many industries have already been seen, with improvements to existing value propositions emerging, or entirely new ones being developed. In aviation, digital technology has already fundamentally changed the airline industry landscape.
Agree