How to successfully transform traditional enterprises

I answer this question from the transformation direction of traditional enterprises and successful cases, hoping to help you.

First, the transformation direction of traditional enterprises-products and services

In the early stage of manufacturing development, enterprises quickly won, and with the help of mature products in the international market, they quickly occupied the domestic blank market. With the awakening of independent innovation consciousness, enterprises gradually began to "practice internal strength" and create differences in product technology and functional characteristics in order to gain competitive advantage.

The Internet era has accelerated the transmission of information, and products and technical experience can be widely copied in a short time. The original "intensive cultivation" mode with the year as the time unit exposed the disadvantages of long cycle, high risk and unknown yield ratio. How can we increase the value of products and make services meet customers' more comprehensive needs?

The value-added space of products is increasingly shifting to the service links at both ends of the industrial value chain, and the demand for service links such as product delivery, installation, maintenance and maintenance is constantly improving. The popularization and application of information technology, and the accelerated development of emerging industries such as cloud computing, Internet of Things, big data and industrial Internet make services no longer a simple "three guarantees" and timely on-site after-sales. Optimizing the service mode and building a digital service management system are the new demands for products and services in the digital age, which can also help enterprises reach, activate, interact and even market existing customers, reduce the cost of on-site service and improve service efficiency and level.

Second, the service transformation cases of world-renowned manufacturing enterprises

Many world-renowned multinational manufacturing enterprises have changed from product manufacturers to "product+service" providers. For example, GE changed its operation mode, expanded services such as engine maintenance, engine leasing, engine data analysis and management, and bound users with service contracts, which increased service revenue. The value created by its "technology+management+service" has accounted for more than two-thirds of the company's total output value;

Take Rolls-Royce, the global aviation manufacturing giant, as an example. Its aero-engine has a high concentration in the world, but it has chosen "not to sell products, but to sell services". As a supplier of Boeing, Airbus and other aircraft manufacturers, rolls royce Company does not directly sell engines, but promises to undertake all maintenance, repair and services during the other party's lease time in the form of "lease service time". Once the engine breaks down, the engine company will send special personnel to major airports for maintenance and obtain objective benefits through service. More than 55% of the modern jet engines sold in rolls royce have signed service agreements, and the service revenue has accounted for more than 60% of the company's total revenue.

IBM used to be a simple hardware manufacturer, but after more than ten years of integration, IBM has successfully transformed into a "total solution provider providing hardware, network and software services". More than a decade ago, when all IT vendors were making PCs, IBM had quietly transformed its IT services. Today, more and more IT vendors are beginning to realize the strategic importance of IT services and its powerful income-generating ability. IBM has once again turned to the service productization strategy. Today, IBM's service revenue has accounted for more than 50%, and its profit has increased by more than 10% year after year.

John Deere, an agricultural machinery manufacturer, has also changed the original product sales model to provide customers with professional field management services to better meet their needs; Even Philips, which sells light bulbs, chose the business model of "lighting management" instead of selling electric lights.

For equipment manufacturers, with the popularization and development of intelligent manufacturing technology, the depreciation and replacement cycle of mechanical equipment will even be extended to decades, and after-sales service will become the focus of customer procurement. In the future, many devices will continue to be used through software upgrades without replacing hardware, and equipment manufacturers will be able to obtain greater value-added services.

Third, the new era has achieved new manufacturing.

Service-oriented manufacturing industry is an inevitable trend for manufacturing enterprises to gradually change the value chain from product-centered to "product+service" at a certain stage of development, which will bring new competitive advantages to manufacturing enterprises, establish more sticky customer relationships internally, stimulate old customers to introduce and buy back products, establish a better brand image externally, and further help enterprises to explore incremental markets.