Competitive threats and how to protect yourself
Is it getting hot in here?
The pace of change in manufacturing today is staggering. New markets emerge, seemingly, overnight. Micro industries and niche applications can light up the forecasts–then disappear—in a blink, leaving you with shelves of obsolete inventory. Trends come and go. Technology needs to be continually refreshed, and yesterday’s projections are ancient history before you even hit SEND on the report. But, the greatest danger of this break-neck speed of business isn’t in recognizing what’s ahead; It’s seeing who is sneaking up from behind.
Impact of speed
Today, fast-gaining competitive threats can blindside you. Start-ups can swoop in claiming market share and stealing customers before you even recognize them as a threat. Thanks to crowd funding, angel investors, global logistics, and e-commerce, new companies can set-up in a garage and ship world-wide within a fraction of the time business launches once took. Innovative technologies accelerate the competition’s launch-rate even further. Tech-savvy entrants to the market can use Virtual Reality to visualize prototypes, 3D printing to create personalized components, and digitally connected supply chains and logistics companies to ship products—same day.
Why is competition heating up?
Low-cost threats. Competition is increasing and becoming more challenging to fend off. Today’s global economy means that competitors from around the world now can become viable threats. Competitors from emerging nations often come to the table with pricing advantages, including a workforce accustomed to lower wages, fewer safety mandates, and minimal workforce conditions and benefits. These influences can bring overhead costs down and allow the manufacturer to flood the market with low-cost goods, bringing prices down across the industry.
Brand knock-offs. Some countries are also known for their lax views on rights to proprietary concepts, patents, and copywrite materials, turning a blind eye to companies making knock-offs and brand-name forgeries. These issues all lead to increased competitive threats
Prestige products. It’s not the just low-end of the pricing spectrum that is changing competition. In some industries, a demand for high quality, customization, healthy or socially-conscious goods has brought boutique suppliers into the competitive mix. Craft beers, personalized fashions, organically grown protein substitutes are among the offerings. Even if the price is higher and the product is only available through exclusive channels, highly passionate consumers seems willing to support their convictions with their wallet.
Transparency. Merchandise that supports special causes or reflects a view are among the wave of high-end options today’s consumers seek. Led by millennials, socially conscientious consumers are often demanding products with political and ethical transparency and are willing to spend extra for “special interest” niche products. That means more pop-up competitors vying for the available dollars.
Servitization. The Manufacturers of goods are not your only threat. With the growth of IoT technologies, servitization is a growing trend substantially changing the competitive landscape. Now, instead of selling competing products, your competition may be offering outcome-based services that achieve the desired end results. In this case you need to compete against value-added concepts, much harder to do.
What can you do?
With threats popping up from emerging players—as well as mature contenders who experience a revitalization of new technology, maintaining market share can be difficult. You must be vigilant and ready to respond. Just as technology helps the new contenders step up their game, it also can help you identify early warning signs of eroding market penetration. Fortunately, there are also corresponding tactics you can deploy to boost your competitive edge.
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Pair your current ERP system with Infor's CPQ technology easily and efficiently with RenaissanceTech's dedicated consultants.
Creating a Competitive Edge through Service- Manufacturing Matters
Technology supports enhanced customer centricity
Value-add programs are more important than ever as tools to overcome increased competition. Empowered by technology, new entrants into the market, as well as established veterans, are putting pressure on manufacturers to examine their mix of product offerings and services. Unless they want to risk commoditization of products or eroding market share, manufacturers must find ways to stand apart from their competitors. Enhancing the customer experience, from order entry to after-market service, is one of the most effective ways to build relationships that are resilient to aggressive competitors.
Even in business-to-business (B2B) industries, the customer expects timely, responsive service. Consumers have become accustomed to technology which recommends purchases and suggests related products often bought together, such as bulbs for a lamp, or an installation kit for a new dishwasher. Customers expect the same type of omniscient ability to sense and advise to carry over to the business world. Fast turn-around times, personalized products, attentive sales people, excellent credit terms, error-free deliveries, and responsive customer service and field service are other mandatory table-stakes. Manufacturers who disappoint in any one of these categories are likely to be replaced—and soon.
With so much at stake, a manufacturer must strive to further enhance service offerings and go above and beyond the typical array of features. Technology often provides the added boost or distinctive edge that will make all the difference. Here are several examples of solutions which will help you create customer intimacy and enhanced field service.
Configure, Price, Quote. A CPQ solution helps the manufacturer offer customized products to customers. The solution guides the user through selections, based on pre-configured options, automatically creating a quote and CAD drawing of the configured product. This tool saves time for the manufacturer, reducing engineering time, and allows the customer to order specialized products.
Customer Relationship Management (CRM) solutions. Having an advanced CRM solution is important today for managing accounts, promotions, expected purchases, as-serviced history, and the account’s purchasing and billing details. A modern solution helps you anticipate needs and be proactive in building relationships.
Customer service desk. Connectivity across the organization makes it easier for customer service representatives to answer questions and access real-time status of parts inventory, technician schedules, warranty and service agreements, as well as dispatch of service crews. The customer service team can quickly and accurately answer questions for customers about orders, billing, and service requests. Visibility is the key.
Warranties and service agreements. These tools are important service offering for customers. In order to manage the program, you need advanced service solutions which can help you track extended and multi-tier warranties, ensuring that the proper billing. Service agreements can also be a major form of revenue, as long as they are well managed, highly productive and efficiently leverage parts and labor.
Technician scheduling. Getting the right technician to the right place at the right time, with the right parts and tools is essential. With advanced dispatch tools, the process can be simplified, increasing productivity of service fleets and ensuring faster response to customer.
Inventory of spare parts. Improved visibility throughout the value chain will help manufacturers ensure they have access to spare parts for their customers’ products when and where they are needed. Visibility into the supply chain readiness will also help manufacturers understand the necessary back-up stock requirements and minimize inventory of costly parts.
Forecast service and parts demand. Visibility into customer purchase history, including details of models and any special configurations, will help the service operation predict parts, revenue, and staffing requirements, by region. This forecasting will help manufacturers by ready with resources, even when spikes in demand occur.
3D printing of parts. If rare parts aren’t available, the manufacturer may be able to employ 3D printing to create the part in a timelier and more cost-effective way than a special order from a supplier that is continents away or no longer in business.
Tracking fleet vehicles. Sensors embedded on service vans will help dispatchers track location of vans so they can route or reroute technicians as needed to answer emergency service calls. Tracking van location also helps monitor technician productivity and accurate billing of customers.
Internet of Things. Machinery and equipment can be embedded with smart sensors to generate data about location, environmental conditions, or performance. Smart sensors can be used to monitor and alert the service organization of early warning signs of equipment failure. Automated responses can be triggered, such as dispatching a technician or reserving a replacement part in inventory. The sensor-generated data can also be used to track the lifespan of the product, determine when calibration or preventive maintenance is required.
Proper product operation. There are times when product operation needs to be monitored to ensure safety and environmental regulations are being met. Or, improper practices, like dismantling safety warnings, may void the manufacturer’s warranty. Sensors can help technicians monitor that the equipment and machinery is being operated within recommendations.
Mobility and remote connectivity. Field technicians need remote access to data, such as inventory of parts and status of warranties. Mobile solutions give technicians the data they need to make well-informed decisions in the field, including the ability to sell replacements units.
Virtual Reality. Virtual environments can be used to help train technicians on complex machinery, especially when the machinery is remote or in a dangerous location.
Wearables and video. Video-enabled connectivity can help the field technician communicate and sahe video with a senior technician or design engineer at headquarters to obtain guidance. Wearables can also give technicians hands-free access to the system. Drones, robotics, and AI-enabled assistants are other ways the digital service operation may use technology to enhance service.
Service data as an offering. Data collected from products related to optimal performance and maintenance can be aggregated and packaged into insights customers will find valuable. The insights can be offered as value-add feature to build relationships or can be monetized to create added revenue streams.
Actionable advice
If you manufacture products which require maintenance or service, now is the time to review your IT solutions and consider how you can deploy digital technologies to gain an important competitive edge. The highly efficient service operation offers an important way to become well-aligned with the customer and a chance to build greater loyalty. Technology can help you increase your operational abilities, while adding the advanced value-add features customers expect.
Utilizing a CRM System? Integrate with Infor Configure Price Quote
The Infor Configure Price Quote(CPQ) suite of applications can be integrated into many Customer Relationship Management systems. The configurator, where the guided selling process takes shape, can be accessed within a CRM system providing users access to product options and quoting documents.
No CRM System? Infor was just named as a leader in Customer Relationship Management. Contract RenaissanceTech today to learn how your CRM system can be integrated to Infor CPQ!
Infor Customer Experience Suite Recognized for Usability and Functionality
NEW YORK – May 01, 2018
Infor, a leading provider of industry-specific cloud applications, today announced the company has been named a Leader in the Nucleus Research Customer Relationship Management (CRM) Value Matrix. Leaders in the CRM Value Matrix for the first half of 2018 are augmenting functionality with more embedded analytics and artificial intelligence (AI), and advancing usability both on the desktop and mobile devices.
Key areas of investment in functionality for CRM vendors included in the Matrix include: mobile capabilities; AI and embedded analytics which can enable individual user-level personalization; and integration and orchestration, which can help link customer data in meaningful ways across departments.
“In order to be competitive in CRM today, vendors need to deliver ongoing innovation in upgrades that can easily be digested and adopted without too much disruption to the business,” said Rebecca Wettemann, vice president, Nucleus Research. “Leaders in the CRM Value Matrix are augmenting functionality with more embedded analytics and artificial intelligence (AI), and advancing in usability both on the desktop and mobile devices. Those who haven’t modernized their user interface or made mobile design and configuration accessible for non-developers are lagging in the market.”
Of note for this Value Matrix were updates that Infor continues to incorporate to the Customer Experience (CX) Suite of applications. Specific enhancements to the CX Suite since the last Matrix include out-of-the-box integration with Marketo, a bi-directional data sync and Sales Insight that is designed to provide a holistic overview of a lead’s journey and behaviors, as well as embedded mapping services added to the geocoding and mapping functionality in Infor CRM Contour.
“Our vision is to empower sales and marketing professionals with the best and most effective tools on the market to help them connect, engage, and create valuable relationships with their customers,” said Jason Rushforth, vice president and general manager, Infor Customer Experience. “Infor is proud to once again be recognized by Nucleus Research for our continued efforts to innovate our products and support our customers.”
Six Ways You Can Become a Preferred Seller of Customized Products
Deliver quick access to detailed product info:
Providing accurate, complete, and up-to-date product information is critical to making your customer’s lives easier. Your customers expect to access reliable information whenever and wherever they need to. Every customer has unique needs, and what’s “fast” and “easy” for one, may not be for another. A prospect who is just being introduced to your products needs guidance on how certain configurations meet his or her needs, whereas a dealer just needs to place an order quickly. To accommodate different customers' needs, you can provide multiple ways to engage with your products. For example, offer a flexible product catalog for an existing customer, guided product selection for a novice, and a “my favorites” function for a frequent buyer. This increases order speed and efficiency, and helps your customers make good choices.
Allow visual confirmation of orders:
A picture is worth a thousand words, especially when it helps your customers feel confident that they’re selecting the right product options. Sometimes a static image is all it takes, but for more complex products, an engineering drawing helps seal the deal. 2D or 3D image functionality can generate high-level models and quote drawings to support customer collaboration during the configuration and sales process. By rotating and manipulating a product that looks just as it will when engineered, a customer becomes more engaged with the order and your company’s ordering process. And, the more orders you and your channels sell, the more revenue you generate.
Generate accurate price quotes that don’t change:
An accurate price quote can make the difference between closing a sale or losing it. According to Aberdeen Group, top performers create 10% fewer iterations of the typical sales proposal or quote. Providing the “correct price” often proves the greatest challenge, but if you can’t give an exact, accurate figure during the quoting process, your customers cannot effectively manage their profit margins. By implementing a rules-based solution that captures detailed engineering specifications and the cost of each change to an order, you can quickly generate a detailed quote with a price that stands from decision to delivery. Providing accurate cost information can also help your customers deliver winning quotes to their own customers at a margin that works for them.
Create winning bid proposals:
Dealers typically produce detailed proposals to win business. The same Aberdeen Group report notes that CPQ deployments inspire 45% more efficiency at responding to RFPs. By implementing an automated documentation solution that’s integrated with your CRM, ERP, CAD, and other systems, you can deliver personalized, compelling quotes that get quick approvals. Combine this with the enduring accuracy of your quote, and you give customers a reason to choose your products over others
Provide shorter order-to-delivery lead time:
A make-to-order or engineer-to-order product that arrives quickly and on-schedule is a key component for satisfying customer needs. With increased brand commoditization, automation is key—speed, accuracy, and quality are the new differentiators. Automating the order-to-delivery process with a CPQ solution helps ensure fast production without mistakes. Not only does a manual process take longer, but it also allows more room for errors—and the delays and costs that come with them.
Stay relevant after-market:
Keep happy customers coming back by providing overall product and service quality throughout the product’s lifecycle. By proactively reminding your customers of service checks and maintaining a user-friendly portal to access past orders, you can take maintenance, repair, and replacement issues as seriously as you do product manufacturing. If you make reordering as convenient as ordering your configured products, you’ll be rewarded with repeat business.
Contact RenaissanceTech today to learn how Configure Price Quote can help you standout from your competitors!
Is Configure Price Quote Right for you?
Sell More with Scalable Infor CPQ
As CPQ grows in popularity due to its ability to simplify the entire quote to cash cycle, here are why other manufacturers have found it beneficial:
- Having the configurator application as part of the CPQ suite allows customers to visually answer questions about their problems and receive a quick customized solution to meet their needs
- Acts as a single point of maintenance and one version of the truth
- Cross selling and up selling are increased
- Solution is scalable and can meet the ever-changing needs of a company rapidly
- Empowers front-end sales force and makes your company standout from competitors to increase brand and customer loyalty
- It makes it easier for new staff to be trained and become subject matter experts
Want to sell more and increase customer loyalty with Infor CPQ? Contact us today to set up your demo!









