Tackling Emerging Challenges for Industrial OEMs: Insights and Strategies for a Shifting LandscapeApr 12, 2023
In this insightful blog post, we share observations from Rob Bradenham, Chief Growth Officer at Entytle, who recently visited multiple customers across Europe to discuss the challenges and opportunities facing equipment manufacturers in today's complex economic climate. Entytle is a leading enterprise software company specializing in helping Original Equipment Manufacturers (OEMs) unlock the potential of recurring revenue streams by offering a proactive, AI-driven customer engagement solution. Join us as we delve into Rob's key takeaways from his European tour, exploring the evolving landscape of industrial OEM challenges.
The Growing Importance of Recurring Revenue
As capital equipment purchases slow down due to various factors, equipment manufacturers are focusing more on recurring revenue streams such as service, parts, digital solutions, and other aftermarket offers. The need to shift from a reactive mindset to proactively growing revenue in these areas is more important than ever. OEMs must adapt their strategies to capitalize on these opportunities.
Addressing the Talent Gap and Generational Shift
Despite economic uncertainty, there is still a significant talent gap in areas like field service technicians, account managers, and leadership. This gap is exacerbated by the increased focus on service, which demands greater capacity. At the same time, a generational shift is underway, with newer employees less likely to stay with a company for long periods. This change threatens the tribal knowledge that equipment manufacturers have relied on for years, requiring a new approach to maintaining customer understanding.
Cost Concerns and Technology Investments
Economic uncertainty has led equipment manufacturers to focus on cost, especially when it comes to technology investments. Companies often evaluate internal technology projects and external partnerships differently, with the latter perceived as riskier. Cost concerns also lead to hiring freezes and a push for doing more with fewer resources, which can introduce additional risks.
Struggling with Technology Maturity
While equipment manufacturers are making progress in their technology maturity, many still face challenges in implementing projects related to ERP, CRM, and data management. These projects can struggle to achieve expected value and can be plagued by timeline and cost issues. Successfully navigating these technology projects is essential for OEMs looking to thrive in a changing landscape.
The equipment manufacturing industry is undeniably facing significant challenges, but there are also considerable opportunities for those that can adapt and execute effectively. OEMs need to recognize the implications of the current landscape and implement strategic solutions to address the growing importance of recurring revenue, the talent gap, cost concerns, and technology maturity issues.
Possible solutions for OEMs include investing in advanced analytics and proactive customer engagement solutions to capitalize on recurring revenue opportunities, developing innovative talent acquisition and retention strategies, striking a balance between internal and external technology investments, and prioritizing project management and change management practices.
Both the Blumberg Advisory Group and Entytle have critical roles to play in helping OEMs overcome these challenges. Blumberg Advisory Group, a renowned management consulting firm specializing in the aftermarket services and field service industries, can provide valuable insights, guidance, and tailored solutions to help OEMs adapt and thrive in this shifting landscape. Entytle, an enterprise software company, offers a proactive and AI-driven customer engagement solution that helps OEMs maximize recurring revenue streams.
By partnering with forward-thinking organizations like the Blumberg Advisory Group and Entytle, OEMs can seize opportunities and navigate the new realities of the equipment manufacturing space. Together, we can empower OEMs to overcome challenges, achieve growth, and drive long-term success in an ever-evolving industry.
Don't miss the chance to explore how the Blumberg Advisory Group and Entytle can help your organization tackle the emerging challenges in the industrial OEM landscape. Schedule a call with the Blumberg Advisory Group today to discuss the next steps and discover tailored solutions for your business.
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