Aras Study SpotlighZukunft 2024 02″ title=”That’s why companies rely on software-defined products 1″/>Image: Aras Software GmbH
The traditional industry is increasingly enriching its products with software-controlled functions. According to a study by Aras, every second company expects more flexibility in use.
“Modern industrial products can be adapted to changing user needs over the course of their life cycle with the help of software. Breaking up the static product concept brings advantages for industry and users,” says Jens Rollenmüller, Regional Vice President at PLM specialist Aras. In addition to cost efficiency, the desire for more flexibility in product adjustments as well as the possibility of better maintenance and permanent data analysis are the main motivators. “Sectors such as the automotive industry are increasingly relying on software-controlled functions, also to open up additional sources of income. One example of this are subscription models for additional functions such as heated seats,” explains industry expert Rollenmüller.
The increasing integration of software and physical products is reflected in sales. While around a third of the 835 managers surveyed currently generate at least 25 percent of sales with digital business models, more than half of those surveyed plan to increase this share to at least 25 percent in the next five years. The willingness to expand digital business models is particularly pronounced in Great Britain and France. Every second company there already generates a significant proportion of its sales with digital technologies. The DACH region is in the middle field here, while Japan is still cautious.
The results of the Aras study show how important business models such as Product-as-a-Service (PaaS) and Data-as-a-Service (DaaS) already are: 76 percent of companies worldwide already offer PaaS or are planning to do so. DaaS has reached an even higher level of penetration at 85 percent.
Business models in implementation
Digital business models are also implemented in production. Around a third of companies offer individual configurations up to batch size 1, and just as many are currently implementing them. The goal of the smart factory is to deliver customized products at the speed of mass production. Digitalization makes this mass customization possible on a large scale, although we have noticed that medium-sized businesses in particular still have to do some work to develop here.”
