Backed by strong confidence in their growth potential, manufacturers are starting to place big bets on their ability to create new (or at least better) products and services through innovation and R&D.
Expanding market share in new markets is only part of the growth equation for many manufacturers. They also need to ensure that they have the right mix of products and services to balance their risk and capitalize on growth, all while responding to evolving customer demand.
“To create successful products and services, manufacturers need to innovate with their customers, working to understand their full value chain and using that insight to create solutions that leverage their full enterprise capabilities to create real value for their customers. That may be manufacturers biggest challenge going forward.”
- Henk Smit, Partner, Advisory, KPMG in Netherlands
Whether investing in incremental improvements for existing products or inventing entirely new products and services, what is clear is that manufacturers recognize an urgent need to increase their investment into innovation and R&D. Indeed, based on our data, it seems that some manufacturers plan to ramp up investment significantly in the hope of securing a competitive advantage in the future.
“In many markets, including Automotive, Heavy Industrials, Medical Devices and smart buildings/smart infrastructure, it is clear today’s developments in sensors, communication and cognitive computing will unlock huge consumer value. Our experience suggests that product manufacturers will be the winners of the introduction of IoT and the leaders will see huge growth potential.”
- Tom Mayor, Principal, Strategy practice Industrial Manufacturing