{"id":59450,"date":"2023-01-06T12:38:08","date_gmt":"2023-01-06T19:38:08","guid":{"rendered":"https:\/\/www.vendavo.com\/?p=59450"},"modified":"2023-06-12T01:33:27","modified_gmt":"2023-06-12T07:33:27","slug":"for-a-strong-aftermarket-business-digital-transformation","status":"publish","type":"post","link":"https:\/\/www.vendavo.com\/all\/for-a-strong-aftermarket-business-digital-transformation\/","title":{"rendered":"For a Strong Aftermarket Business: Digital Transformation \u00a0"},"content":{"rendered":"\n

In 2022, we partnered with Copperberg for the 4th annual Aftermarket Benchmark study<\/a>. With the luxury of now being able to look back over several years of response data, and especially since the initial survey was fielded pre-Covid, we can see significant swings in the amount of revenue the aftermarket business generated as a percentage of total company revenue.\u00a0<\/p>\n\n\n\n

While there were some large changes in years that one would expect \u2013 2020 and 2021, as the pandemic wreaked havoc throughout the global business environment \u2013 the aftermarket revenue contribution of 2022 is back to being very similar to what was reported 4 years ago in 2019. While the optimists would view this as a return to normalcy, pessimists would suggest this sameness shows a missed opportunity\u00a0to change the perception and significance of the aftermarket business for overall revenue when it mattered most.\u00a0<\/p>\n\n\n\n

<\/span>The need for digital transformation <\/span><\/h3>\n\n\n\n

While the reasons for the decline in revenue contribution are likely many, one important factor is digital transformation. More than ever before, delivering aftermarket services depends on advanced technology capable of remote diagnostics and data-driven solutions. A higher degree of servitization\u00a0requires a higher level of digital transformation.\u00a0\u00a0<\/p>\n\n\n\n

In 2021, manufacturers made significant strides in digital innovation as the pandemic gave them no other choice than to accelerate their plans for the sake of business continuity. In 2022, most survey respondents who were previously behind indicated they have now developed at least a partial digital strategy.  <\/p>\n\n\n

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\"Aftermarket<\/a><\/figure>\n<\/div>\n\n\n

<\/span>Common roadblocks and solutions <\/span><\/h3>\n\n\n\n

But the process of digital transformation takes time. The most common challenge, according to respondents, is the integration of new technologies in their legacy IT infrastructures. To overcome this roadblock, manufacturers are evolving their servitization technology solutions over the next 12 months. Specifically, they report setting aside healthy budgets for: remote diagnostics, e-commerce platforms and AI-fueled data analytics. <\/p>\n\n\n\n