According to the Forbes article, the forces that are transforming how people are made are globalization and regulation. “They still drive manufacturing companies, nevertheless, there are additional forces that must be taken into accounts such as digitization, personalization, smart products and connectivity and servitization.” (Ambruch, 2013, section 3.1). Quality is all about constantly meeting or surpassing the clients’ needs and hopes. As Vonderembse & White (2013, section 2.3) stated, “It is evaluated based on the reliability and responsiveness of service.”
Digitization is a process toward altering over raw data into a shape that can be used by a computer, which can be shared with individuals worldwide. Digitization is important as it assists in improving global collaboration or teamwork, which “is important because it allows, manufactures to simulate and validate any product configurations and designs before they are built” (Ambruch, 2013, section 3.2).
Personalization incorporates the voice of the customer, which describes what customers want and what they like and do not like. “Listening to the voice of the customer is essential to be a successful organization” (Vonderembse & White, 2013, section3.1). As consumer demand continues to evolve, manufacturers must answer to the desires of the customer. Though, responding to the needs of the customer is not always the most cost-effective way. Variety upsurges cost, and possible decreases quality. Producers frequently use the voice of the purchaser to better understand their customers, and to make certain quality does not suffer.
Smart products and connectivity refer to our smart devices and how we connect to the rest of the world. This is important because future technologies will allow our smart products to connect and converse directly with others. For example, smart thermostats control a growing array of home devices, transmitting data about their use back to manufacturers. This ability often leads to servitization.
Servitization is the process of increasing value by adding services to products. It is important because it creates value-added capabilities to consumers, which are distinctive and sustainable over competitors (Elliott, 2014). It is also a process of business innovations that lead to the integrated supply of goods and services improving the satisfaction of customer needs, performance allowing the generation of competitive advantages. It is beneficial because it is a means to create value-added capabilities to consumers, which are distinctive and sustainable over competitors.
Servitization is a process of business innovations that often leads to an integrated supply of goods and services improving the needs of customers, performance and allowing the generation of competitive advantages. “Future manufacturers will need to look beyond the single product sale transaction to stay competitive because technology will be taking the lead and setting the standards” (Ambruch, 2013, section 3.2).
Globalization “is a process of interaction and integration among the people, companies, and government of different nations” (Vonderembse & White, 2013, section 3.2). It is a process driven by global trade and venture while being aided by information technology. The benefits include consumers being able to have access to more products and services worldwide. The manufacture and the source of the material will become irrelevant; the best value will be in the price. Producers should be able to create, build and sell to from wherever in the world” (Ambruch, 2013).
Lastly, regulation is a principle that rules under a law designed to control behavior (Vonderembse & White, 2013). The benefit of having regulation is that it makes a company accountable and sets the standards for consumer protection. As Ambruch (2013) indicated, multiple leaders, are under the impression that world-wide products agreement will be the most developed to coordinate tactics and planning.
Ambruch, B. (2013, October 21). The forces that are transforming how products are made. Forbes. Retrieved from http://www.forbes.com/sites/ptc/2013/10/21/the-six-things-that-are-transforming-how-products-are-made/
Vonderembse, M. A., & White, G. P. (2013). Operations management [Electronic version]. Retrieved from https://content.ashford.edu/
In order for a firm to build quality into its products, firms need to adapt to the customers needs, and continue to strive to make products and services better (Ambruch, 2013). Creating products that do not meet todays technological advancements, and the customers needs will make an organization not be competitive in todays global market. Some of the key factors according to Ambruch (2013) are smart products and connectivity, servitization, digitization, personalization, globalization, and finally regulation. Smart products and connectivity allow for smart connected devices to communicate and connect users to information quickly and efficiently. These items are growing exponentially common throughout homes, personal devices, and even cars. Smart products are developing into a tool for transmitting data about their use back to manufactures to help serve the customer better (Ambruch, 2013). Servitization involves firms developing different capabilities to provide a service to enhance the manufactures traditional product. This involves improving a product or service to attract consumers. Manufactures have been utilizing digital technologies to help improve global collaboration and to expand regional manufacturing prosses, and digitization allows manufactures to validate a variety of product configurations before they are built (Ambruch, 2013). Consumers now-a-days want products and services to conform to them, and manufactures are continuing to evolve to meet the needs of the customers through personalization and product diversity. Globalization is the process of starting to operate business on an international scale. With continuous global market expansion, manufactures must be able to design, build, service, and sell to and from anywhere around the world (Ambruch, 2013). With regulations always changing, manufacturers must continue to adapt with the changes in law, to include the requirements of local customs. The identified forces are transforming how products are made, and smart products and connectivity, servitization, digitization, personalization, globalization, and regulation are the driving forces that enable a firm to build quality into its products.
Ambruch, B. (2013). The forces that are transforming how products are made (Links to an external site.). Forbes. Retrieved from http://www.forbes.com/sites/ptc/2013/10/21/the-six-things-that-are-transforming-how-products-are-made/