Several broad challenges are impacting industrial manufacturing companies. These challenges have led to fundamental revenue model shifts for industrial manufacturing companies
Commoditization of product offering(s)
- Feature-matching by competitors leading to commoditization / look-alikes
- Product-based differentiation is increasingly difficult to sustain
Price pressures / price wars
- Increasing low cost competition from emerging economies
- Migration of production/manufacturing activities to lower cost countries
Technological disruption
- Industry 4.0 and Internet of things (IoT)
- Lower customer switching costs and reduced customer longevity
- New technologies and entrants (e.g. additive manufacturing)
Slowing growth opportunities
- Slowing growth rates as “greenfield” opportunities become scarce, particularly in developed economies
- Saturation in traditional part of the market
For industrial companies, servitization has emerged as a key strategy to drive growth
The servitization journey encompasses several steps moving from single device to full platform economy
Contact us
Partner, Milan, Strategy& Italy
Partner, Strategy& Italy
Federico Mongelli
Senior Manager | Strategy&
Ivan Lavatelli
Partner | Head of Operations and Global DDMRP Practice Leader, Milano, PwC Italy
Francesco Vinelli
Director | Emerging Technologies, PwC Italy
Piera Penna
Director | Tax | PwC TLS, PwC TLS
