Manufacturing CEOs I’ve spoken with are in unanimous agreement that the best way to drive new revenue growth is by transitioning to more services-based revenue models based on next-generation products. Their product roadmaps include configurable, customized products capable of delivering data back to manufacturers they can monetize as services. Manufacturers are looking to get beyond relying on transaction revenue alone. They’re most focused on how they can use configurable products to launch higher-margin outcome-based business services, and their 2020 roadmaps reflect this goal. The following graphic from McKinsey’s Leveraging Industrial Software Stack Advancement For Digital Transformation (50 pp., PDF, no opt-in) explains why manufacturers’ 2020 roadmaps are dominated by more configurable products capable of driving new services-based business models.
One of the more prominent voices demanding localization belongs to India’s richest man, Reliance Chairman Mukesh Ambani, who declared recently that Indian data should be owned exclusively by Indian citizens.