Using Technology Intensity to Accelerate Business Value for Manufacturers

Posted on: August 13, 2020 | By: Guy Logan | Microsoft Dynamics Manufacturing

Technology intensity has become the new buzzword of the manufacturing industry. Many say that companies who embrace technology intensity are bound to be more successful. Sure, we know that technology holds great power in giving companies a sharp competitive edge. But what exactly is technology intensity and why is it important for companies today to build a cohesive digital strategy?

In this blog post, we’ll be discussing the importance of technology intensity and how it can accelerate your business value, including successful examples of its implementation. 

Breaking down technology intensity

We can break down the term “technology intensity” into three components:

  1. The rapid adoption of hyper-scale cloud platforms
  2. A well-planned business vision to invest in digital technologies
  3. A relentless focus on building technology that customers can trust. This means relying on credible suppliers and building privacy and security into new products.

Technology intensity as a critical enabler

In today’s world, technology intensity is a crucial part of a good business strategy. Most high-performance companies invest the most in digital capabilities and skill sets. The scale of your digital investment can be the direct cause of a productivity gap between top performers and weaker counterparts. 

Further research shows that hiring developers and creating innovative software that is owned and used exclusively by a company can lead to a key competitive advantage. These companies are able to build exclusive software and tools that only their customers can access. In times when resources are scarce, these companies can build a differentiated IP with their top-notch technology platforms.

New business models for manufacturers

More and more manufacturers are taking advantage of these technology intensity principles to extend their supply chain past the point of delivery. They are able to create smart, connected products and digitize their businesses with Microsoft products like Dynamics 365.

Manufacturers can build new digital services by collecting and using data from their current products like their condition and usage. Then, the extended supply chain provides itself as an opportunity to move away from selling products based on a one-time purchase price to a subscription-based pricing model based on performance guarantees. As manufacturers transform into digital software companies, technology intensity in action quickly offers direct benefits to your company.

Examples of technology intensity in action

Bühler is a global market leader in die casting and equipment manufacturing. Looking to drive innovation in their die casting process, Bühler combined data from different die casting components together under a single management system. Now, the manufacturer can monitor, control and manage the whole process within a unified, easy-to-use system. 

Colfax is another example of a manufacturer embracing technology intensity. As a global industrial technology company, Colfax recognized the need to adopt greater industrial technologies. They also understood the importance of having a comprehensive digital transformation to expand the products and services of two of its business platforms. Working with Microsoft, the company was able to adopt advanced cloud technology while building up a stronger digital skill set.

Next Steps

There is no doubt that developing an efficient business strategy and taking advantage of technology is important in today’s digital world. Logan Consulting has helped manufacturing clients across the nation lean into the power of technology to find their full potential. With the help of Logan Consulting, embracing technology intensity and developing a strong digital business strategy can be easier than ever. Contact us to learn more about what we can do for you.