Industry 4.0 Services Go-to-Market Strategy

Consulting and Super-Specialization Emerge as the Way Forward for Industry 4.0 Go-to-Market

Industry 4.0 services is a growing market as there is huge interest from manufacturers in the vision of a digital manufacturing enterprise with the physical product at the core driven by information from an integrated information network among the internal stakeholders, as well as external entities, such as customers, suppliers, etc. Industry 4.0 is a combined integrated seamless connected network of machines, production processes, and the manufacturing control systems. This end-to-end digitization improves process efficiency, quality management, and productivity along with real-time insights into the whole manufacturing landscape, building a digital business model that supports data-driven decision-making and integrated platform-based services. Manufacturers have started to experiment with Industry 4.0 implementation with proof of concepts (PoCs) and small implementation projects, which makes sense given how quickly Industry 4.0 is emerging as a manufacturing transformation driver.

We released our HfS Industry 4.0 Services Blueprint Guide in early 2017, in which we evaluated 12 leading service providers. In this Point of View (PoV), we discuss the top go-to-market strategies adopted by Industry 4.0 service providers and key differentiators to boost their services capabilities.

Strategies Adopted by Service Providers to Grow Industry 4.0 Business

Consulting and PoC-led engagements along with verticalized platform–based solutions are the top growth strategies followed by a collaboration with digital initiatives and Industry 4.0 innovation centers (see Exhibit 1).

Exhibit 1: Strategies Adopted by Service Providers to Grow Industry 4.0 Business

Source: HfS Research, Industry 4.0 Blueprint Guide 2017, n=12 Service Providers

As starting the manufacturing transformation journey is a big decision for clients, the role of consulting and PoC is very important. Many service providers have developed frameworks to help their clients assess digital manufacturing and customer experience maturity and often take a consultative approach to help clients understand where they are and where they need to be. The manufacturing processes of different industries vary, so service providers are developing Industry 4.0–specific offerings. Industry 4.0 requires the integration of many digital technologies; thus, digital collaboration is necessary with a focus on emerging technologies related to Industry 4.0.

Mature connected digital manufacturing can create business advantages if it is aligned with a broader product and corporate strategy. It is possible to unlock the value of Industry 4.0 services, but doing so requires a clear strategy and goals. Therefore, service providers are focusing not only on technical execution skills but also on business acumen in creating and realizing value from smart and connected manufacturing objects.

Key Differentiators as a Provider of Industry 4.0 Services

Manufacturing industry experience is a key differentiator followed by Industry 4.0–related consulting and delivery expertise and strong innovation focus (see Exhibit 2).

Exhibit 2: Key Differentiators as a Provider of Industry 4.0 Services

Source: HfS Research, Industry 4.0 Blueprint Guide 2017, n=12 Service Providers

Previous experience in manufacturing challenges and consulting and technology expertise enable service providers to draw a roadmap and implement Industry 4.0 effectively. Innovation has strong visibility for vendors as Industry 4.0 involves several emerging technologies that need to be used effectively according to business use cases. A strong partner ecosystem, an end-to-end solutions provider, and a dedicated Industry 4.0 talent pool are also important differentiators.

We have seen robust investments in establishing a global center of excellence (CoE) for innovation and execution, a dedicated partnership ecosystem, and the development of a verticalized platform-based solution for rapid implementation. A global CoE for Industry 4.0 is imperative for building capabilities in engineering, analytics, the Internet of Things (IoT), and other areas. Many of the Industry 4.0 use cases demand theoretical research and core business knowledge; thus, partnerships with enterprises and institutions are necessary.

Other investments include Industry 4.0 consulting capability development (domain/industry specific), workforce skill upgradation (digital and emerging technology areas), focus on sales enablement, etc.

Bottom Line: Be Smart About Smart Manufacturing

Industry 4.0 is all about smarter manufacturing—the use of technology so the sub-processes within the manufacturing system make adaptive and predictive decisions. We have identified 13 major technologies that are shaping Industry 4.0. These technologies include Manufacturing Data Analytics, Robots, Manufacturing Automation, Digital Clone or Simulation, Three-Dimensional (3D) Printing, Manufacturing IoT, Plant Cybersecurity, Manufacturing on Cloud, Virtual Reality in Manufacturing, Augmented Reality in Manufacturing, Artificial Intelligence in Manufacturing, Visual Analytics in Manufacturing, and Small Batch Manufacturing. Please refer to our PoV The Thirteen Smart Technologies Shaping Industry 4.0 about these technologies and the adoption of each technology, including typical use cases.

These Industry 4.0 technologies can be implemented on the manufacturing shop floor at five levels: smart component, smart machine, digital factory, connected factories, and Industry 4.0 enterprise. The technologies meet manufacturing engineering technologies and control a manufacturing landscape in real time to serve clients. It’s where all the process elements are combined: Connectivity, the processes, and the intelligence come together as one integrated unit, with one set of unified business outcomes tied to manufacturing organizations. The DNA of digitally connected plants includes an intelligent, automated centralized control system with as little human intervention as possible.

This PoV is a reality check for Industry 4.0 service providers and enterprises to assess whether they are investing in the right areas for developing their Industry 4.0 capabilities and to identify action points for future-proofing their Industry 4.0 operations.