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

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

Further reading

You might also be interested in ...

Headline
Trend
Is Low-carbon Production the Solution to Global Climate Change?
Countries are actively developing manufacturing heavy industries and infrastructure to drive market growth, but they often pay environmental costs accordingly. Approximately 70% of global greenhouse gas emissions come from infrastructure construction and operation, such as power plants, buildings, and transportation, promoting society's emphasis on low-carbon manufacturing plans.
Headline
Trend
The Future Trends of Information Software Industry
The information software in IT industry is expected to grow at a considerable rate in the global software market from 2021 to 2026.
Headline
Trend
The Characteristics of Non-Woven Fabric and Its Uses in Agriculture
Non-woven fabrics have been produced in the early stages of the development of the petrochemical industry. During the time, non-woven fabrics are only used for their softness and bulkiness in packaging, covering, and filling. Due to the rapid development of material science, the application scope of non-woven fabrics has expanded to various fields of industry and commerce, civil engineering, medical treatment, agriculture and environmental engineering, and its existence can be seen everywhere; especially for the very early uses in Agriculture.
Headline
Trend
Growth Drivers of the Global Cloud Server Market
The cloud server market is a cloud infrastructure service that allows service providers and end-users to use virtual networks to build architectures.
Headline
Trend
Ultra-Precision Machining System Technology, Cross-Domain Integration Added Value
Micromachining technology is an important support technology for modern high-tech warfare, and is the development foundation and direction of modern high-tech industries, science and technology.
Headline
Trend
How Will AI Robots Disrupt the Manufacturing Industry?
Artificial intelligence has brought in a new generation of robotics technology: Robotics 2.0. The principal challenge is the transformation from original manual programming methods to true autonomous learning. Faced with this challenge for innovation in AI robotics, how can Taiwan's manufacturing industry best seize the opportunity?
Headline
Trend
A Zero-Waste Era that Considers Economic Growth
In the past, excessive consumption, wanton mining, indiscrete manufacturing, and careless abandonment of wastes, led to the rapid depletion of natural resources. Now, the pursuit of a circular economy, with the goal of zero waste through recycling of resources, is being implemented in an attempt to solve environmental problems.
Headline
Trend
At Digital Age, Facial Recognition Technology Has Improved
Artificial Intelligence, Machine Learning, Deep Learning, and Big Data are topics that have been frequently discussed recently. These technologies are used in many fields, including the financial industry, logistics industry, business analysis, unmanned vehicles, computer vision, natural language processing, etc., and have spread in every corner of life.
Headline
Trend
Food Industry Trend in 2021
The capital expenditure for automation in the global industry food and beverage is approximately US$19 billion. This includes 9 billion US dollars in process equipment automation, 7 billion US dollars in packaging and material handling equipment, and the remaining 3 billion US dollars in production line automation.
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 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 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 a factory through intelligent management and corresponding equipment supporting to achieve an intelligent factory and flexible manufacturing production is the latest direction in the development of the automation industry.
Agree