by Elizabeth Hines | Nov 28, 2017 | Blog, Manufacturing & Distribution, Marketing, Social Media, Supply Chain
Manufacturers who are active and engaged on Facebook are more likely to introduce product innovation than those who are not.
If you’re killing time during business hours on Facebook, you may actually be onto something valuable. Well, no, — scrolling through your sister-in-law’s vacation album is unlikely to help your business. But recent studies show that staying attuned to user feedback on Facebook may actually help manufacturers create better products.
The practice in question, social listening, is the process of monitoring social media to identify and assess what users are saying about a company, individual, brand, product, or service. We’ve written about how social listening can help your business — you can gain market intelligence and learn how your company, products, and services are being perceived.
But two researchers from the Centre for European Economic Research (ZEW) have taken things a step farther. They studied data from nearly 3,000 German manufacturing and service firms to analyze the role that Facebook plays in the innovation process. What they found was that the probability that a company introduced a product innovation was significantly determined by firms’ adoption of a Facebook page and by the activity by users, measured by both quantity and quality.
The researchers, Irene Bertschek and Reinhold Kesler, discuss their findings in detail in this article published in the Harvard Business Review. So you can skip to the bottom line, we’ve pulled out a few key takeaways for manufacturers:
Negative comments are your friend…
…if you take them seriously.
While you might cringe when you seed a negative customer comment on Facebook, what the researchers found was encouraging: “Surprisingly, only the share of negative user comments was significantly predictive of innovation, perhaps suggesting that customers were helping to steer companies away from bad ideas.”
To make this work for you, it’s important that you pay attention to negative reviews, actively engage with them, and pass along relevant information to the people within your company who can address the issues. For more ideas, check out this post for tips on dealing with negative customer comments.
Simply being on social media isn’t enough — you need to be actively and intelligently engaging.
The study found that companies who were “using keywords in their posts that encourage users to leave feedback were significantly more likely to release a new or improved product.”
In other words, to gain the kind of valuable feedback that allows your products and services to improve, you need to be intelligent about soliciting it. “When developing social media strategies,” suggest Bertschek and Kesler, “companies should not only focus on marketing aspects, but also consider the potential for the firm’s innovation success.”
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by Jennifer Hart Yim | Nov 14, 2017 | Blog, Current Events, Manufacturing & Distribution, Strategy, Supply Chain
No doubt 3D technology has transformed the world of business. There are numerous inspiring ways by which 3D technology has to reshape the future.
This post comes to us from Adam Robinson of Cerasis, a top freight logistics company and truckload freight broker.
If you are also instructed to learn about the impact of this revolutionary technology then you are at the right spot. Here are seven ways in which this new 3D trend will shape the future of manufacturing sector:
1. Boost Local Production
According to a recent survey based report it is come to know that 3D technology will allow the manufacturer to double the mass production level. It will enable the producers to reach their targets without increasing each unit production cost.
It will also reduce the shipment costs as a local manufacturer will no need to bring material from other countries. Instead, they could easily install 3D manufacturing plant in their own factory to cut the extra cost.
This way local business will easily boost their production process as well as reduce the cost of manufacturing.
2. More Customized Products
When you will engage 3D technology in the manufacturing process, you will get a chance to produce customized goods. It means that you could build everything from clothes to cars in a unique way.
According to a report, it is revealed that in coming years mobile users will get the opportunity to use 3D printing app.
In additional professional designers with also use 3D printing techniques to enter into the new age of industrial design. So, if you want to develop customized products to drive more revenue then you should use 3D printing method.
3. Best For Creativity
It is true to say that 3D technology is the best tool for creative lovers. This is because it enables manufacturer to open up new possibilities to grab the attention of more customers,
Many experts have predicted that the introduction of 3D technology will enable the creativity lovers to fulfill their every desire in an innovative manner.
Whether you want to design a phone or furniture mode, 3D technology will soon make it possible for you to accomplish your goals perfectly.
4. Avoid Copyright Issues
We all know the importance of copyrights to safeguard ones intellectual property. This is why businessmen hire lawyers to overcome a number of legal disputes that are rising due to copyright.
It is anticipated that 3D printing will secure the creativity of artists as everyone will hold ownership of their 3D design.
In case, you are also concerned because of the copyright issue then this technology will help you to overcome legal issues quickly.
5. A New Tool For Large-Scale Producers
Suffice to say that 3D technology is best tool for countries which are totally dependent on manufacturing industry. For instance, as China heavily depends on the manufacturing industry, 3D printing will enable China to target a huge domestic market.
In addition, it will also assist countries that are rapidly moving toward manufacturing sector. It gives them the great benefit to switch their operations to mass-manufacturing level all over the world. This strategy will benefit every growing economy to step in the next level in the coming future.
6. Build New Horizons For Every Industry
The 3D technology will revolutionize production process of every industry including the healthcare sector, education sector as well as food industry. The reason behind this is that scientists are working on 3D models that will facilitate every industry so that more people will take benefit from it.
From research, it is come to know that a popular hospital has printed a jawbone by 3D printer. If you also engage in health sectors then you will also find yourself building human body parts in a 3D manner. Many experts have also researched that 3D tools will also help to assemble chemical compounds and printing drugs.
7. Reduce Crime
It is predicted that new 3D technology will reduce the crime level. This is because people can keep guns that are made on 3D printers to secure themselves from criminals.
In addition, people can create CCTV camera and other 3D technology to catch the criminal in an easy manner. Moreover, it will also help in the production process of military equipment and chemical weapons.
Wrap-Up…
Therefore, it could be said now that 3D printing will offer uncountable benefits to small scales as well as the large-scale manufacturing industry to drive more revenue. If you also belong to the manufacturing industry then you should also tap into the potential of this superb technology.
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by Elizabeth Hines | Nov 13, 2017 | Blog, Consumer Electronics, Current Events, Manufacturing & Distribution, Strategy, Supply Chain
As sales and consumer desire continue to increase for drones and home assistants, the second-life market has a huge opportunity for growth.
Consumers are becoming ever-more enamored with their gadgets and toys. Drones and home assistants are becoming more ubiquitous in our homes (and flying around our skies). However, when these machines run their course — either because they break, or a newer model comes out — is there still use for them?
The market for gadgets
The marketplace for drones is an ever-growing one. Last year drone sales increased by an astounding 60%, and revenue grew to $4.5 billion. The drone market can be segmented into two categories — personal and commercial. Personal drones, which many consumers use for photography, is predicted to grow 40% this year, while commercial drones, which can be used for survey maps and delivery services, are expected to grow 60%.
While personal-use drones dominate unit sales, commercial-drone sales — which make up only about 6% of the market — are projected to represent 60% of the market’s revenue. This is due to the high cost of commercial drones, some with costs that exceed $100,000.
Home assistants are another intriguing category on the rise. These products are intended to control various devices in your home, such as thermostats, lighting, and security. These products also allow an individual to shop online using voice commands.
The frontrunner for this market has been Amazon’s Echo devices. As the primary nature of Amazon’s business is e-retail, the Echo device plays perfectly into this. By making it simple and easy to make Amazon purchases through voice command, these devices have great potential to bolster Amazon’s bottom line.
While this market is still in its early stages, Gartner Research expects tremendous growth, projecting $2.1 billion in consumer spending on personal home assistants by the year 2020.
The second-life market
So what becomes of these products as we replace them with newer models? Smart phones offer a sensible comparison when looking at the second-life market for these products. In 2016, consumers sold or traded in used cell phone devices for an average of $140 per device, generating a total of $17 billion worldwide. This selling and trading doesn’t just end after one transaction. It is predicted that at least 10% of premium ($500 and up) smartphones will have at least three users before they are retired.
We can draw a parallel about second-life potential between drones/home assistants and cell phones. Advances in technology render previous models obsolete or, at best, out of date. Consumers who can afford them will gravitate toward newer products. As with cell phones, they will generally look to recoup some of the cost for the newer product by selling or trading in the old one. These can then be sold to consumers looking for less expensive, older models. Even in the case of drones that crash, parts can be salvaged and sold to individuals that are looking to build their own drones.
The markets for these products are all still in early stages, so second-life markets are still in growth stages as well. As sales and consumer desire continue to increase for drones and home assistants, their life cycle will go on long after the first owners have moved on to newer models.
This post originally appeared on EBN Online.
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by Elizabeth Hines | Nov 1, 2017 | Blog, Manufacturing & Distribution, Strategy, Supply Chain
Manufacturing companies are hoping to continue their revenue growth in 2018 by focusing on 3 key areas.
KLR has released the results of its annual manufacturing industry outlook report, and the optimism following last year’s elections will continue straight through 2017.
With promises of tax reform, decreased federal regulations and looser trade agreements, manufacturers have slowly seen revenue growth throughout the U.S. markets. That growth is projected to continue into 2018.
56% of respondents expect business will continue to increase throughout the year.
And though manufacturing companies are striving to control their costs and cut back on unnecessary expenses, many companies reported increasing their marketing budgets, including technology, to invest in the future of their revenue growth.
So where is the additional money going? Manufacturing companies are investing their profits back into new products, expanding markets and breaking into new territories.
Here are the top 3 priorities for manufacturing companies in 2018.
1. Increasing share in existing markets
Over the next 12 to 18 months, 64% of the manufacturers surveyed expect their growth to come mainly from increased market share and organic growth in existing domestic markets. Manufacturing companies are looking to increase their market share through innovation, strengthening customer relationships, reliable hiring practices, and staying ahead of their competitors.
2. Seeking new markets for products and services
Manufacturing companies are trying to think outside of the box when it comes to expanding their markets. Avon got its big break when it took the now-dated approach of selling products door to door. By trying a different avenue, it was able to increase revenue without fighting for retail space with other corporate giants. Like Avon, companies are working hard to come up with innovative ways to break into untapped markets.
3. Developing new products and services in response to changing consumption patterns
Using social media platforms and other marketing tools, it’s easy for manufacturing companies to stay in touch with their customers. This engagement provides the best insight into the types of products, features and solutions your customers are looking for. Based on this crowdsourcing, or social listening, companies are able to develop products that they know will resonate with consumers and their changing needs. Though product development can be expensive and risky, incorporating customers into the conversation helps manufacturing companies minimize risk.
Despite growth throughout 2017, there are still challenges that manufacturing companies face. How are manufacturers coping with these challenges? They are adjusting their priorities and focusing on these three areas to continue growing their business and, ultimately, their sales.
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by Elizabeth Hines | Oct 10, 2017 | Blog, Consumer Electronics, Current Events, Manufacturing & Distribution, Strategy, Supply Chain
Of legal obligation, financial incentives, and convenience, what best drives consumers to practice proper e-waste recycling?
The United States is a nation of consumers, and there are few things we enjoy more than our electronic gadgets. Unfortunately, for every new device — or upgrade — introduced to the market, there’s an older model that becomes obsolete.
The world produced 41.8 million metric tons of e-waste in 2014, according to a study published by the United Nations University. So how can we combat this growing problem?
The recycling option… and sometimes law
Recycling products that we’re no longer using is always good practice. It can help protect the environment from hazards that are in our electronics and batteries. And many times, the device can be refurbished and donated to a person in need.
Sometimes just asking people to recycle isn’t enough, though. Some governments have made it illegal not to recycle. For example, the EU has gone so far as to institute the Battery Directive. Understanding that batteries commonly contain elements such as mercury, cadmium, and lead, the EU has set an objective of improving environmental performances of batteries, and setting a standard for their waste management as well.
In the United States, cities like New York City have made it illegal to simply throw out electronic devices. Instead, residents need to bring their devices to a recycling center, many of them conveniently located at other electronic retail outlets.
Incentives
If less hazardous waste in landfills, a cleaner environment, and compliance with laws and regulations aren’t enough, how about saving money as an incentive to recycle e-waste?
Many manufacturers and retailers offer discounts on purchases with the return of old devices. Best Buy, for example, has experimented with trade-in and recycling programs that offer gift cards or cash for customers who bring in old devices. As programs like this can leave the retailer struggling to break even, they often aren’t financially attractive enough to be the sole incentive drawing consumers to recycle e-waste.
But one incentive that is very effective is also, probably, the most obvious — convenience. One survey found that 43% of respondents would be more likely to recycle e-waste were cell phone and battery recycling part of curb-side pickup.
The convenience of curb-side pickup for paper, plastic, and aluminum helped to make recycling ubiquitous in neighborhoods across the country. It’s the same thought process that leads researchers to believe that the convenience of a curb-side pickup will encourage more individuals to recycle their electronic devices and batteries.
This post originally appeared on EBN Online.
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by Jennifer Hart Yim | Sep 27, 2017 | Blog, Manufacturing & Distribution, Strategy, Supply Chain, Talent
Insights from the Procurement 2020 survey
This guest post comes to us from Argentus Supply Chain Recruiting, a boutique recruitment firm specializing in Supply Chain Management and Procurement.
it’s no secret that the world of Procurement is changing and fast. With automation, big data and burgeoning AI systems removing more and more of the profession’s “tactical” or “clerical” tasks, companies are calling on their Procurement teams to be more strategic, more nimble, and more innovative. They’re expecting their Procurement functions to deliver not just bottom-line cost-savings, but other sorts of value, adding to organizations’ overall competitiveness.
Procurement, you’ve come a long way, baby.
But a new survey of 200 C-Suite executives from a variety of industries and functions presents a rather dispiriting picture of the Procurement function today – or at least how it’s perceived. Held by Management Consulting firm Ayming, the survey explores a wide base of opinions from some of business’s top leaders – CEOs, CPOs, COOs, and CFOs – about the value Procurement has to add, and where it’s going to be in 2020. The survey, titled Procurement 2020, has lots of interesting insights, showing where Procurement is knocking it out of the park – and where it’s striking out.
The biggest headline takeaway? 83% of executives surveyed say that their Procurement function is not entirely strategic – meaning they don’t think it’s crucial to business leadership, and that it isn’t a key input when making high-level strategic decisions.
It’s a rough verdict, one showing that as much progress as the field is making, a lot of that development – the chance to be a true partner to business at the highest level – is still unfulfilled potential. Some of the other data is relatively damning as well: only 28% of executives surveyed viewed Procurement as a core aspect of their strategy. More than half (51%) of the executives do not consider their Procurement operating models to be effective as they stand today.
Interestingly, this last number breaks down differently across industries:
- Retail executives had the highest confidence in their Procurement function, with 43% of retailers considering their Procurement operations to be highly effective – and 18% considering them to be somewhat effective. Retail also had strong marks in terms of its strategic value from Procurement, with 79% of executives saying that its Procurement operations were “mostly or entirely strategically focused.”
- 27% of Manufacturing companies viewed their Procurement operations as highly effective – with 24% considering them to be somewhat effective. The Manufacturing industry also led the way in terms of strategic value, with 91% of Manufacturing executives saying that their Procurement operations were highly strategic.
- 21% of Technology companies, as well as only 21% of Healthcare companies, viewed their Procurement operations as highly effective.
- Dispiritingly, only 15% of Financial Services companies considered their Procurement operations to be highly effective.
The numbers represent a large base of dissatisfaction with how companies are prioritizing, training and supporting their Procurement departments. 44% of CEOs, as well as 44% of CFOs, consider their Procurement functions either very or somewhat effective. 52% of COOs gave a “very or somewhat effective verdict,” compared to (perhaps unsurprisingly) 56% of CPOs. Perhaps unsurprisingly, very large companies – most able to leverage a shared service model and consolidated spend – were most likely to report that they received a very high amount of value from Procurement: 36%.
Despite the survey saying that Procurement still has a long way to go, the broad base of executives surveyed often indicated a deep interest in helping the function get there. 48% of companies surveyed have either reorganized their Procurement function in the past 5 years, or are in the middle of reorganizing it, with a full 20% planning to reorganize Procurement in the next 24 months.
There are some other interesting and divergent opinions when it comes to how companies are seeking to increase their Procurement function’s effectiveness:
- 68% of executives surveyed believed that if Procurement gets involved earlier in new product creation, as well as long-term strategy, it’ll be able to add more value.
- 82% of CEOs believe that employee training and upskilling is a key way to improve Procurement effectiveness. In contrast, a 38% of CEOs believe that Procurement-specific technology is the answer.
- A large percentage of CPOs (90%) believe that upgrading technology is key to improving Procurement strategy (compared to 76% of CEOs), but across different industries there’s some disagreement about the best way to drive further value from Procurement: In the Financial Services, Transportation, Retail and Technology sectors, executives saw people and skills development as the biggest opportunity to add more value through Procurement, whereas Manufacturing executives saw reorganization as the best opportunity.
We tend to think that surveys like this are an opportunity for the field rather than an indictment. And despite some of the more negative responses, we happen to know tons of Procurement departments who are excelling and creating true strategic value for their stakeholders. But if these surveys are anything to go on, there’s much more to be done. We encourage you to dig into Ayming’s survey, as there’s a lot more data we only briefly covered here.
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