Posted to News on 2nd Nov 2015, 18:22
Era of convergence and collaboration for industrial suppliers
The evolution of manufacturing in line with Industry 4.0 trends is poised to disrupt business rules and dynamics across existing supplier landscapes. This will bring about a fundamental change in the way suppliers offer products and services. The emphasis on a heterogeneous value proposition is gaining traction, leading to fresh synergies and partnerships among vendors in industrial automation, information and communication technology (ICT), measurement and instrumentation, and banking and financial services.
New analysis from Frost & Sullivan, Industry 4.0 Business Ecosystem""Decoding the New Normal, finds that the new Industry 4.0 supplier ecosystem is set to reach $420 billion in terms of value by 2020. For complimentary access to more information on this research, please visit ow.ly/TTbgP.
Frost & Sullivan Industrial Automation and Process Control Program Manager Karthik Sundaram says: "The increasing influence of ICT on the shop floor will give rise to novel business scenarios of collaboration, co-opetition and competition in the industrial landscape. Connectivity and mobility, supported by Ethernet, cloud computing, virtual reality and big data analytic technologies, will form the cornerstone of next-generation manufacturing."
While the matrix of cross-industry influence shapes future manufacturing and production, technology standardisation will be critical for the creation of alliances and partnerships among disparate vendors. An uncertain economic environment along with weak consumer demand will be a hurdle for end users seeking to expedite modernisation targets.
Further, the digital factory idea will remain incomplete without a coherent return on investment framework. Establishing profit models and go-to-market strategies for different tiers of end users founded on a service approach will help suppliers emerge as a key partner for manufacturers.
Sundaram states: "Industrial suppliers, although in a position of privilege due to their expertise, will be faced with a two-fold task. Enhancing existing products through collaborations and diversifying value to customers by delivering end-to-end solutions that go beyond traditional boundaries."
Innovations that encompass technology, service delivery and business models will be the breeding ground for new markets, thus defining the road-map for the industrial world.
Industry 4.0 Business Ecosystem""Decoding the New Normal is part of the Industrial Automation & Process Control Growth Partnership Service program. Frost & Sullivan's related studies include: The Safety-Security Argument""Expanding Needs in a Connected Enterprise, Internet of Industrial Things: The Vision and the Reality, Investing in the Currency of the Future: Big Data for the Manufacturing Domain, and Mega Trends and Their Impact on Advanced Manufacturing. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
To learn more about Frost and Sullivan's research in the area of Industry 4.0, please go to www.frost.com.
