I had the opportunity to meet the Executive Advisory Board in Chicago on October 12, 2023, to discuss pivotal strategic topics that are shaping the industrial landscape. We had a very fruitful discussion focusing on successes, challenges, and the future evolution of the aftermarket.
Here are the key highlights from our discussions:
Key Takeaways from the Chicago Meeting on October 12, 2023
1. What is creating success for Industrials?
In a rapidly changing industrial landscape, success is defined by the ability to embrace digital transformation and offer value-added services to meet customer needs. The strategies discussed at the meeting included:
Digital Transformation: Manufacturers are shifting towards digital asset-managed services and implementing cutting-edge tools to enable data-driven decisions at scale. Automation of workflows through technology is seen as a path to greater efficiency.
Service Strategy: Enhancing remote service capabilities, broadening the portfolio of offerings, and investing in technology service teams are central to success. Manufacturers are expanding the skill set of their service teams to keep pace with evolving customer demands.
Marketing Initiatives: The adoption of a data-driven marketing approach, using insights from customer-installed base data, is becoming a significant driver of success.
Improving Customer Experience: Streamlining all aspects of customer interactions, including orders, deliveries, returns, payments, and support, to make it easier for customers to do business with OEMs.
2. What challenges are OEMs facing?
OEMs continue to grapple with several persistent challenges, as discussed in the meeting:
Personnel Shortages: Finding and retaining skilled personnel remains a major challenge. Resource constraints are widespread, and the need to retrain employees after departures is a common theme.
Supply Chain Disruptions: OEMs are actively working to diversify their supply chains to mitigate interruptions and delays caused by global disruptions.
IT Agility: Meeting the evolving requirements of internal stakeholders and customers is proving to be a challenging task. These delays may result in missed opportunities, and there are concerns regarding the efficiency of IT operations.
Transition to Proactive Sales: Shifting from a reactive sales approach to a proactive one is a recognized necessity, and onboarding other business units to support this transition is part of the discussion.
Utilizing Technology: Sales teams are encouraged to make full use of technology for effective lead follow-up, improving overall efficiency and conversions.
3. How will the Aftermarket evolve?
The discussions at the meeting transitioned to a forward-looking view of the aftermarket, a hot topic in the industry. Key points in this context included:
Leveraging AI: Artificial Intelligence is set to revolutionize the aftermarket in several ways, such as predicting maintenance, optimizing supply chain processes, and pricing strategies, and analyzing extensive data models. "Gen AI" is expected to make intelligent prescriptions, adding a new dimension to decision-making.
Digitizing Customer Experience: Manufacturers are actively exploring new channels for customer engagement, including portals, e-commerce platforms, and efficient payment systems. Building a comprehensive "customer 360" view and using digital systems for asset performance and workflow management are seen as pivotal strategies.
Additional Service Models: A fundamental transformation is underway, focusing on the creation of new service models that provide predictability and consistency. This approach fosters recurring revenue and enhances customer loyalty. Manufacturers aim to manage demands that exceed the capacity of local service shops.
Engine of Change: Aftermarket is viewed as a dynamic engine for delivering essential information and driving innovation across an array of products, creating new opportunities for growth and customer satisfaction.
My meeting with the Executive Advisory Board meeting was a resounding success, offering a profound understanding of the industrial landscape’s present and future. The insights shared during this event have set a clear direction for the industry, where digital transformation, AI, and customer-centric approaches will continue to drive innovation and success. This meeting proved invaluable for me and the board members, providing a roadmap for the evolving landscape
