Digitization in service: leveraging data potential

A Europe-wide benchmarking study by KVD partner FIR e. V. on the subject of "Data-based services" showed that particularly successful companies are already exploiting this data potential with above-average success.

"In particular, manufacturers of classic capital goods such as machine tools can use data-based services not only to reduce costs, but also to generate additional after-sales revenue and stand out"

explains Prof. Volker Stich, Managing Director of FIR e. V. at RWTH Aachen University.

The development of digital services should not be an end in itself; it must always be geared to specific customer needs. Companies must strategically align their own capabilities with customer requirements. In this context, the technologies used should be seen merely as a means to an end.

However, according to Prof. Stich, this is precisely where many companies with a technology-centric approach (keyword: technology seeks use case) still make major mistakes.

For example, a large proportion of new machines are equipped with sensors and software. Communication takes place via digital infrastructures. Steadily falling costs for sensors, networking technologies, computing and storage power allow companies to economically collect and process data on an unprecedented scale.

"The potential of digital networking has not yet reached the broad mass of companies. Many companies make neither significant sales nor profits with digital services.

Companies are not yet managing to make needs and customer expectations the starting point of their digital strategy. The starting question is quite simple: 'How do I make the customer happy?

explains the KVD Board.

"Even in times of digital networking, the key to success lies in customer benefits. There is no lack of process models that support companies in the development of digital services.

says Prof. Stich.

The core of these models is usually the rapid development and testing of solution-oriented prototypes, so-called minimum viable systems. Instead of remaining in costly analysis and development phases, such primotypes are intended to achieve rapid learning effects.

"The pace in this development and the implementation of targeted solution concepts is the new target variable that defines the success of digital transformation.

As more and more companies enter the market with their industrialization efforts, it is essential to be able to quickly offer innovative solutions to customers and partners with digital services."

explains the KVD Board.