It's time for a product revolution
Smart products demand data
Companies that make products are facing complex challenges as their industries are hit by global macrotrends, from environmental regulations and talent shortages to the implementation of artificial intelligence and responding to climate change.
These macro forces, combined with a need to deliver advanced products and connected devices at speed, call for a product revolution—a transformation of underlying operational processes to deliver groundbreaking products. Unlocking the value of data from across the product lifecycle—design, validation, production, and in-use—will be critical to success.
Understanding the challenging landscape
More demanding time-to-market requirements is product innovators’ top concern driving the product revolution. They know they have to get faster to be competitive, but two things in particular are slowing them down:
Customer demands for product customization
(ACCORDING TO 55%)
Increasing complexity of customer devices
(ACCORDING TO 52%)
The proliferation of smart products relying on increasing amounts of software, computing, and connectivity has fueled increasingly high standards for complex product design. This is made even more difficult by trade barriers and supply chain volatility, which cause delays in development and production.
Other pressure points that product innovators identify include customer demands to share data, global competition, and new workforce models such as hybrid working.
Shrinking time-to-market requirements and increasing product complexity are triggering a product revolution
Chart shows trends expected to have a moderate or major impact on organizations over the next two years.
The impact of this disruption is beginning to show. On average over the past two years, a quarter of product releases went over budget; a similar number went over schedule; and more than one in ten were recalled. It is clear that organizations must revolutionize their processes to adapt to the demands of the current landscape.
Big or small? The size of an organization can shift worries
Top concerns of product innovators at companies with 1-500 employees:
Top concerns of product innovators at companies of 1,000+ employees:
Shrinking time-to-market requirements
Increasing complexity of customer devices
Talent shortages
Supply chain volatility
Environmental laws
Global competition
Trade barriers
Customer demands for product customization
The lifecycle of the car is evolving. It is no longer just something that takes you from A to B—it’s now a phone on wheels! The industry is changing, and it'll take an adjustment on the innovation side for people to come to terms with that. I think that's the bottleneck. We are not, as an industry, looking at new ways to capture competitive advantage.
Mufaddal Sanwari
Product Operations Manager, Volkswagen Automotive Cloud
Product data is the answer
Many businesses are taking a transformative approach to their operations to address the increasing demands for product complexity and shrinking time-to-market.
Companies are rising to this challenge in several ways—for example, shifting resources to upgrade technology; recruiting new talent; and eliminating process gaps. But the strongest and most sustainable way to boost innovation could be through product data and analytics.
Used effectively across the whole product lifecycle, data can help you become faster, smarter, and more agile in your processes.
Product innovators tell us that implementing a company-wide product data strategy that includes manufacturing and engineering is the initiative most likely to deliver value to the business. Their next most-valuable initiative is better integration of test data into other processes.
Organizations recognize the business value of data
Chart shows initiatives product innovators say would deliver the most value to their business
So, product innovators recognize the benefits of using different types of data across the product lifecycle. But are they using it to its full potential? In the next section, find out what’s holding them back.
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It's time for a product revolution
Innovations in innovation
Companies that make products are facing complex challenges as their industries are hit by global macrotrends, from environmental regulations and talent shortages to the implementation of artificial intelligence and responding to climate change.
These macro forces, combined with a need to deliver advanced products and connected devices at speed, call for a product revolution—a transformation of underlying operational processes to deliver groundbreaking products. Unlocking the value of data from across the product lifecycle—design, validation, production, and in-use—will be critical to success.
Understanding the challenging landscape
More demanding time-to-market requirements is product innovators’ top concern driving the product revolution. They know they have to get faster to be competitive, but two things in particular are slowing them down:
Customer demands for product customization
(ACCORDING TO 55%)
Increasing complexity of customer devices
(ACCORDING TO 52%)
The proliferation of smart products relying on increasing amounts of software, computing, and connectivity has fueled increasingly high standards for complex product design. This is made even more difficult by trade barriers and supply chain volatility, which cause delays in development and production.
Other pressure points that product innovators identify include customer demands to share data, global competition, and new workforce models such as hybrid working.
Shrinking time-to-market requirements and increasing product complexity are triggering a product revolution
Chart shows trends expected to have a moderate or major impact on organizations over the next two years
The impact of this disruption is beginning to show. On average over the past two years, a quarter of product releases went over budget; a similar number went over schedule; and more than one in ten were recalled. It is clear that organizations must revolutionize their processes to adapt to the demands of the current landscape.
Big or small? The size of an organization can shift worries
Top concerns of product innovators at companies with 1-500 employees:
- Shrinking time-to-market requirements
- Talent shortages
- Environmental laws
- Trade barriers
Top concerns of product innovators at companies of 1,000+ employees:
- Increasing complexity of customer devices
- Supply chain volatility
- Global competition
- Customer demands for product customization
The lifecycle of the car is evolving. It is no longer just something that takes you from A to B—it’s now a phone on wheels! The industry is changing, and it'll take an adjustment on the innovation side for people to come to terms with that. I think that's the bottleneck. We are not, as an industry, looking at new ways to capture competitive advantage.
Mufaddal Sanwari
Product Operations Manager, Volkswagen Automotive Cloud
Product data is the answer
Many businesses are taking a transformative approach to their operations to address the increasing demands for product complexity and shrinking time-to-market.
Companies are rising to this challenge in several ways—for example, shifting resources to upgrade technology; recruiting new talent; and eliminating process gaps. But the strongest and most sustainable way to boost innovation could be through product data and analytics.
Used effectively across the whole product lifecycle, data can help you become faster, smarter, and more agile in your processes.
Product innovators tell us that implementing a company-wide product data strategy that includes manufacturing and engineering is the initiative most likely to deliver value to the business. Their next most-valuable initiative is better integration of test data into other processes.
Organizations recognize the business value of data
Chart shows initiatives product innovators say would deliver the most value to their business
So, product innovators recognize the benefits of using different types of data across the product lifecycle. But are they using it to its full potential? In the next section, find out what’s holding them back.
SHARE THIS
