IBM and SAP’s strategic partnership combines the two enterprises’ expertise– SAP provides the world’s leading intelligent applications while IBM helps customers build smarter businesses and is a global leader in SAP transformations.
Like all business sectors, the industrial manufacturing industry has faced unprecedented challenges throughout the pandemic that exposed vulnerabilities in systems and supply chains– from production and logistics through fulfilling surge in demand. COVID-19 has had varying impacts in certain industries, some experienced damaging downturns while others encountered demand surges. For instance, a recent report by IHS Markit, a leading source of information and insight in critical areas of today’s business landscape, revealed that global light vehicle production is forecasted to grow by 50{8bf2b29f36318f0ac46ab1cc03d7035abce669a1cea16c9ed62389a818fa22fd} in the second quarter. However, amid the remarkable recovery of this sector, supply constraints remain a challenge.
Working towards pandemic recovery, industrial manufacturers are now delving into embracing new business models that leverage sustainable solutions to address the fast-evolving, outcome-based economy. The recent survey conducted by IBM Institute for Business Value and Oxford Economics with 500 executives revealed that 66{8bf2b29f36318f0ac46ab1cc03d7035abce669a1cea16c9ed62389a818fa22fd} of industrial manufacturing companies are already focusing on new service business models and increasing revenue share from services, expecting 22{8bf2b29f36318f0ac46ab1cc03d7035abce669a1cea16c9ed62389a818fa22fd} growth in outcome-based services.
IBM and SAP Backing the Industrial Manufacturing Sector
Recognising the pressing need of industrial manufacturers for new service models, long-standing partners IBM and SAP have co-innovated to develop the IBM Cognitive Enterprise solution, which provides the intelligent workflows that support data-driven processes with embedded data intelligence and end-to-end process integration. The intelligent workflows are built on IBM’s Essentials® platform that accelerates technology adoption and modernisation by individualising the orchestration of these industry-specific intelligent workflows into the client environments.
Here are the four differentiating workflows that cover the entire industrial manufacturing value chain developed by the joint teams under the SAP/IBM Evolution Partnership:
- Lead to Order Intelligent Workflow. This intelligent workflow enables faster qualification of sales opportunities to boost productivity, intelligent querying of opportunity status using a chatbot to enhance, and cognitive, AI-based pricing for quotations. It also allows the configuration of complex solution bundles (products, services, and subscriptions) to improve customer satisfaction as well as capture customer experience feedback through the quotation process to increase future win probability.
- Plan to Manufacture Intelligent Workflow. This intelligent workflow allows complex assembly manufacturing, process, and data integration framework with product lifecycle management (PLM) and manufacturing execution system (MES) solutions. It also provides worker safety, tracking, and guidance and has the capabilities for cognitive visual inspection.
- Order to Cash Intelligent Workflow. This intelligent workflow enables streamlined and automated processes– from shipment and logistics to installation, commissioning, and handover at the customer site. It allows ongoing outcome-based, subscription, and convergent billing and invoicing for solution bundles. The Order to Cash intelligent workflow also enables complete integration to manufacturing and aftermarket service workflows.
- Maintain to Resolve (Aftermarket) Intelligent Workflow. This workflow enables end-to-end integrated and automated workflows developed on the SAP Business Technology Platform across multiple processes and applications. It offers efficient service contract management from setup, remote monitoring, and anomaly notification to service planning and execution. The workflow also enables digital twin setup and remote monitoring of assets integrated with field service management sub-workflow.
“We are grateful for the feedback that the SAP Global Industry Advisory Council for Industrial Machinery & Components shared with our joint teams. This input was leveraged as the blueprint of the now available end-to-end intelligent workflows,” the SAP article stated.
