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
Explore Opportunities in the Maternal and Child Market
The market for women and infants will fluctuate with changes in the market population, and consumption patterns will also respond to changes in society, moving towards online and offline channels for simultaneous sales. Consumers will also pay more attention to the safety, comfort, and fashionable compatibility of products.
Headline
Trend
The Textile Trend Is Towards Intelligent Manufacturing and the Development of a Circular Economy
With the global economic development, the demand of the consumer market has driven the vigorous growth of the textile industry. However, under the business model of production-based sales, excessive production has not only caused environmental pollution but has also caused unnecessary waste of resources. Over the past few years, this has led the United Nations and the European Union, to begin to advocate "sustainability" and "environmental protection" as the focus of global development for the next 10 years.
Headline
Trend
Smart Logistics Transportation Equipment Continues to Evolve
Industrial automation has been a common trend in global industrial development. With the rapid development of technology and the complexity of product manufacturing, how to optimize the production efficiency of the factory through intelligent management and corresponding equipment supporting programs to achieve an intelligent factory and flexible manufacturing production is the latest direction in the development of the automation industry.
Headline
Trend
Four Major Markets Drive the Growth of Global Communications Industry Output Value
The four major markets of "consumer", "5G telecommunication network", "enterprise network" and "data center" will drive the growth of the global communications market in 2021.
Headline
Trend
Consumer Electronics Industry Revolution
The size of the consumer electronics market was worth US$1 trillion in 2019 and is expected to grow at a compound annual growth rate of more than 7% between 2020 and 2026. Industry participants continue to invest in the research and development of new consumer electronics products, including smartphones, smart wearable devices, and home appliances, which will drive market growth.
Headline
Trend
The Printing Industry Under the Influence of Internet Technology and Digital Media
The printing industry is very complex. It not only has many internal sub-industries but also involves many upstream and downstream related industries. It can be said that it is a huge industry system. The printing industry has a long history of development. Starting from the invention of printing in ancient China, printing technology has continued to innovate, forming a large industry, and it is also an industry that we often meet every day.
Headline
Trend
Accelerate the Development of Taiwan's Smart Transportation with Innovation
Through national key projects, the Taiwanese government announced that it plans to invest more than one trillion yuan in transportation technology to stimulate the development of convenient transportation and boost the Taiwan economy.
Headline
Trend
Packaging Machinery Combined with AI Automation Technology, Master Smart Data Technology
In the era of digitization of science and technology, only by mastering key technologies and continuously following technological changes can we consolidate our competitiveness. Nowadays, packaging machinery combines data connection, unmanned operation, green packaging materials, safety considerations, and enriches relevant intelligent data technology, so that it can continue to progress in the market.
Headline
Trend
Integrate Technology to Build A Strong Machine Tool Industry Ecological Chain
In the face of rapid changes in the international situation, seeking to expand exports and increase the added value of exports, we must also consider how to build a stronger industrial chain through industrial structure adjustment and international market layout strategies to improve the overall industry’s ability to withstand external shocks.
Headline
Trend
Combining the Advantages of the Optoelectronic Industry, and Upgrading the Manufacturing of the Technology Industry
The optoelectronic industry is one of Taiwan’s important technological industry developments, and it is included in many daily visible technological products. For example, a smartphone with more than one hand includes LED flash lighting, solar chargers, display panels, and touch panels. Control panels, optical lenses, image sensors, surface-emitting lasers, infrared sensors, laser focus sensors, and other upstream optoelectronic related products, as well as LiDAR technology in self-driving cars, so optoelectronic related products can be said to be various cutting-edge key components that are indispensable in technology products.
Headline
Trend
How to Deal with the Recycling of Used Batteries in Electric Vehicles?
The world is studying how to deal with the increasing number of discarded electric vehicle batteries.
Headline
Trend
Global New Plastic Economy Commitment
Plastic issues cover a wide range from waste such as bottles and cans to microplastics and are inseparable from the lives of the general public. The environmental problems caused using many plastics have long been widely recognized around the world. Blindly recycling can no longer solve the huge plastic pollutants. Seeking a comprehensive transformation of the system is the fundamental way.
Agree