Manufacturing Industry Wants to Improve Customer Experience
Rising operating costs are by far the biggest threat to the business success of transformation projects.
The report, “Customer Experience vs. Rising Operational Cost: Global Manufacturers Speak Out on Digital Transformation,” by Valtech and Gartner Peer Insights, shows an overwhelming willingness to change and modernize the customer experience, but also identifies obstacles companies face in their digital transformation. For the report, 100 global manufacturing industry leaders were surveyed on the current state of their digital transformation and the biggest challenges they face.
Breaking down organizational silos
When asked about their company’s maturity in creating helpful and flexible customer experiences, 91 percent said they either already have modernization strategies and tactics in place or are aware that they should.
Sixty-two percent of respondents said the digital transformation projects they initiated are going well. They are confident about their ability to act in the future or are positive about organizational change. This indicates that there is an overall willingness on the part of these companies to engage in the digital transformation process.
Although the digital transformation of companies is predominantly (74 percent) led by traditional IT departments, almost all (97 percent) report at least occasional or regular communication and collaboration between IT, sales, marketing and the product department in the implementation of these projects.
Organizational and technological challenges
The companies surveyed cite rising operating costs (79 percent) as by far the biggest threat to the business success of their transformation projects over the next few years. Less frequently cited but still significant challenges include changing customer expectations (42 percent), loss of control over pricing (37 percent), new competitors (35 percent), channel multiplication (33 percent) and supply chain management (32 percent).
On the technical side, lack of integrated marketing and technology components (69 percent) are among the biggest challenges. This can lead to data silos and prevent tools from being used to their full potential (55 percent). Other challenges cited by respondents include difficulty scaling legacy systems (51 percent), lack of staff or internal expertise (34 percent) and lack of buy-in from senior management (15 percent).