The European Business Review

The current frontier in undustrial manufacturing: BRINGING SOFTWARE SYSTEMS TO MARKET

Industrial manufacturers increasingly market software systems that help customers optimize value chain processes. However, many manufacturers are dissatisfied with the sales performance of these systems. Current research shows that to improve their success manufacturers need to answer three key questions.

European industrial manufacturers have opened a new battleground. While they traditionally competed by selling machines along with machine operation software, they increasingly try to bring software systems to market that provide information and process automation to help customers optimize their value chain. Consider the following three examples:

EcoStruxure Machine Expert by Schneider Electric (France) is a software system for developing, configuring, and commissioning machines, including logic, motion control, robotics/mechatronics, simulation, diagnostics, intelligent motor and load management, among other functions.1

Many managers complained that their employer’s business rationale for moving toward software systems is not clear, but targets are high.

• by Daimler Trucks (Germany) collects and analyzes data from trucks, such as location, driving style, and maintenance requirement. Customers such as logistics companies can use the software to monitor their truck fleet, save on fuel

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