Did you know that 80% of companies across the US, Japan, and Europe are feeling the effects of the political, economic, and environmental pressures facing the world today? Even with those stats, there is good news. Industrial manufacturers are taking steps to address current business, product, and industry complexities by pursuing increased digitalization and modernization of IT. According to the global industry study "Spotlight on the Future 2024," conducted by Aras, three out of four companies are better equipped to handle challenges today than just twelve months ago. The study surveyed 835 executive-level experts across the US, Europe, and Japan.
In a company comparison, more than one in two companies say they have driven digitalization (56%) or modernized IT (55%) over the past two years. In addition, the expansion of the company's own R&D activities (36%), a stronger focus on sustainability (36%), and the optimization of the supply chain (36%) are among the other actions companies have advanced within the past two years to secure their future.
Survey highlights
Proactive companies don't sit back. They look ahead. This attitude significantly strengthens the market position of these companies. Three-quarters of the companies surveyed consider themselves better able to cope with diverse challenges today than they did 12 months ago.
-Jens Rollenmüller, Managing Director, Aras Germany
Overall, companies were able to make gains in improved quality (40%) and flexibility (38%). However, innovative strength (37%), improved focus on customer success (36%), and faster time-to-market (36%) are also strong indicators of a company's increased competitiveness.
Cloud-based software is the new normal…Survey respondents were asked about their position on or use of cloud-based software, concluding that "cloud-based software takes over." When asked if they consider themselves a "SaaS-based company," 36% strongly agreed, with 45% somewhat agreeing. Again, the trend line here is clear, "the days of on-premise applications seem to be over. SaaS is cheaper, more scalable, and more secure. Plus, companies don't have to worry about maintaining and updating their software."
Sustainability is a must-have… Companies were asked if making progress on being more sustainable is key to their organization's economic success. 87% strongly or somewhat agreed (45% and 42%, respectively), with only 13% disagreeing. The survey concluded that "stakeholder pressure on companies to become more sustainable is high. However, management has already recognized that sustainability is an important contributor to business success. This is consistent across countries."
AI will transform products and services…The trends around how AI will impact PLM strategies are more complex. Companies were less consistent across the board. When asked about the impact of AI on their organizations, the UK came in at 92%, followed by France and Italy, and was lowest in Germany (67%) and Japan (54%). "The use of artificial intelligence is unleashing new potential in companies. Particularly in the U.K., France, and Italy, the benefits — also in combination with PLM — are being recognized."
PLM takes center stage… When asked, "Does your company work with PLM software?" the survey results were precise, with 76% saying yes. "A high proportion of respondents already use a PLM system. However, the depth of PLM integration and the extent to which the system is used to add value to various processes is critical."
This survey shows that companies want to seize the opportunity and realize the potential of digital transformation. They see new technologies as a lever to unlock undiscovered potential and take the entire organization to a new, sustainable level. This is evident in the survey results for new digital business models or artificial intelligence, where expectations for revenue growth are high. In a nutshell, digitalization is an opportunity to be seized.
-Roque Martin, CEO, Aras
Interested in knowing more about the survey results? The "Spotlight on the Future 2024" survey is available here and contains many more fascinating and useful takeaways. We encourage you to check out the survey and let us know how it reflects your organization's initiatives.