Hardly any other industry is as driven by innovation as automation technology. Accordingly, the number of patent applications for systems and solutions in this industry is rising rapidly. Rapid innovation continues to shorten the life cycle of products and systems. This calls for ever higher investments in product development and ultimately results in even more product innovations. It is therefore no coincidence that automation technology – unlike most other industries – generates about one third of its total turnover with new products with a life cycle of just two years.
New paths in automation technology
Automation technology develops control, regulation, optimization, and monitoring systems for continuously running processes in almost all technical disciplines. The field is highly complex, combining a large number of different individual disciplines. Here are some of the components that work together in automation:
- Measurement Technology
- Control Technology
- Control Engineering
- Communication Technology
- Safety Engineering
- Implementation and Software
For suppliers of automation technology, the current discussion about Industry 4.0 brings with it even more opportunities – on the one hand for a positive development of the sales market and on the other hand for differentiation and the further development of these companies’ business. Networking on the Internet of Things also offers factory outfitters completely new opportunities to expand their business through service-oriented approaches.
Company takeovers to strengthen companies’ market positions and expand their product portfolios are in full swing internationally. This development poses great challenges especially for small and medium-sized companies.
In addition, technology-based solutions are becoming increasingly blurred. For suppliers of automation technology, this opens up the possibility of penetrating previously unaddressed segments as well as opening up completely new markets such as building automation. Since automation technology – as a cross-industry sector – is and will remain relevant for many different target markets, suppliers must increasingly implement industry-oriented strategies that help them channel their core competencies into an optimally adapted range of benefits.
The decision for the business model component or solution is strategically important: Frequently one encounters mixed forms of the different models, whereby over a certain period of time a development towards a provider of solutions can be seen. There are several reasons for this development: The most common are the pursuit of growth or corresponding customer requirements, which, however, also drive the provider into a stronger application focus and thus into a narrower niche.
Essentially none of these business models is superior. However, due to the market and competitive situation, it may be advantageous in certain cases to change the business model. Whatever the configuration, it is crucial for success that the respective positioning is thought through to the end. Above all, this means that the value creation architecture is also designed according to the relevant performance promises offered on the market.
ensign advisory as your partner and consultant in automation technology
For our clients´ challenges in automation technology, ensign advisory is at their side as a competent partner for consulting, planning, and control. We draw on our expertise in the entire field of automation, also with regard to cross-industry orientation.
Thanks to our long experience in the industry, we know suppliers, OEMs, and customers. We advise and support clients in data analysis, the development of meaningful strategies, and the implementation of optimization concepts, for example, when it comes to improved user guidance or operator assistance systems.
Together we build our clients up to a stable size in automation technology and lead their company to success!
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