IXON CEO: “Machine manufacturers” focus is shifting from selling technology to selling top-quality service”

There is a lot going on in the manufacturing sector at the moment. Rapid growth, a shortage of engineers, rapidly changing technology, new developments and an increasingly competitive market.

We spoke to Willem Hofmans, CEO of IXON, about the current market situation and the growth opportunities for machine builders in this competitive market.

Hofmans used his background in engineering to found IXON, after which it grew into one of the most valued and user-friendly remote service & IIoT platforms in the manufacturing industry.

What challenges does the average machine builder currently face?

The manufacturing industry is growing at a rapid pace. However, due to the components crisis, many machines are still awaiting missing components before they can be delivered to customers. Furthermore, the pandemic has made the commissioning of machines both more expensive and more difficult.

Machine manufacturers are innovators and are constantly working to improve their machines. Their biggest challenge at present is to find ways to generate revenue throughout the machine’s entire life cycle, rather than just during commissioning. They need to consider new ways of supporting customers via the internet and develop business models to this end. To do so, they need the right people, which is an additional challenge given the shortage of engineers.

What's on the machine builder's agenda?

Many machine manufacturers have taken the strategic decision to invest in the development of new service offerings. They wish to use their expertise to continuously improve their machines and advise customers on how to use them in the most efficient way.

Many companies are taking their first steps towards these propositions by implementing Industrial IoT. Internal project teams are being set up and IoT specialists are being recruited. The strategy is being communicated organisation-wide so that all departments, from engineering and service to sales, are involved.

How do you envisage the IIoT continuing to contribute to these propositions in the coming period?

The mechanical engineering industry will increasingly focus on providing excellent service rather than selling technology. Machine builders want their own IIoT portal with a dedicated app where they can provide automated insights for their customers. Preferably in one central location. These capabilities will enable them to sell new service models and generate new revenue streams.

What steps are machine builders taking to implement these new business opportunities?

Now that remote access is widely regarded as a must-have, many machine manufacturers are taking their first steps towards condition monitoring – having had this on their roadmap for some time.

Nowadays, there are many examples of implementations across various industries from which they can learn. Furthermore, the technology has advanced to such an extent that it is easier to begin implementing IIoT. The analysis of collected data is becoming more widely adopted, which is crucial for condition monitoring. Furthermore, there is greater demand for integrations with third-party tools within IIoT platforms, such as ERP or a ticketing system. This makes it possible to devise the best process to ensure machines perform at their best.

Which trends do you expect to be the most significant for the manufacturing industry in 2022?

I believe there are a number of issues that will play a major role for machine manufacturers, not only in 2022 but also in the years to come. New service propositions will certainly emerge. As mentioned, the focus of machine builders is shifting from selling technology to selling excellent service. As a result, data analysis is becoming increasingly important. Machine manufacturers will not only be working on condition monitoring, but also on monitoring machine performance and analysing machine data to identify the causes of downtime.

In addition, cyber security and sustainability are becoming increasingly important, meaning that machine manufacturers must devote attention and resources to cyber security, and must help their customers to reduce waste and energy consumption during production.

What advice would you give to machinery manufacturers looking to grow in today’s competitive market?

We are operating in a rapidly growing market, with increasingly strong competitors – partly as a result of mergers – and customers who are demanding more and better services. It is therefore crucial to make plans for the future and to have a strong strategy in place – a strategy such as selling services as a new business model, for example.

Take it step by step; put together a project team comprising a mix of dedicated people from both inside and outside the company to kick-start the innovation process. Think outside the box and make sure you invest in the future. At IXON, we follow the motto: Think big, start small, scale fast.

How can IXON contribute to the machine manufacturer’s plans for the future?

IXON aims to inspire machine builders and help them gain a competitive edge. This means we help machine builders devise a strategy that suits their unique needs and plans. We also provide the right technology and tools to successfully implement their strategy – with security embedded throughout our organisation and in all our products.

Further information: www.ixon.cloud/nl