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Effiiciently making great products has been the hallmark of manufacturers’ competitive
advantage during the past 50 years. This strategy has led manufacturers to prioritize
activities that maximize returns at the moment of sale. In recent years, however, leverage
from such production-centric strategies has begun to diminish, in part because they have
With a new century upon us, manufacturers are thinking about new sources of competitive advantage. A few companies are lighting the way to a brave new future in which manufacturers reprioritize activities to maximize returns across the entire useful life of the product.
This thinking looks past the single sales transaction, creating multiple opportunities for an exchange of value, and simultaneously transforming the relationship between manufacturer and customer. Under these new business models, the line between products and services is blurring, with products being reconceived as “things bundled with services” or, in many cases, things delivered and consumed as a service. For manufacturers, this means a rethinking of nearly everything,from how products are conceived, designed, and sourced to how they are produced, sold, and serviced. We’re at the early stages of a fundamental transformation, marking what could be one of the most significant business model disruptions since the Industrial Revolution.
Read the full article in the Manufacturing Leadership Journal here or watch the video here=> http://ptc.co/nZQqx