CONFIDENTIALANDPROPRIETARYThispresentation,includinganysupportingmaterials,isownedbyGartner,Inc.and/oritsaffiliatesandisforthesoleuseoftheintendedGartneraudienceorotherintendedrecipients.Thispresentationmaycontaininformationthatisconfidential,proprietaryorotherwiselegallyprotected,anditmaynotbefurthercopied,distributedorpubliclydisplayedwithouttheexpresswrittenpermissionofGartner,Inc.oritsaffiliates.©2017Gartner,Inc.and/oritsaffiliates.Allrightsreserved.DigitalBusinessinManufacturing–TrendsandTechnologiesOwenChenResearchDirectorCIOresearchteam1©2017Gartner,Inc.and/oritsaffiliates.Allrightsreserved.AgendaDigitaltrendsinmanufacturingindustryDigitalEcosystemFromSellingProducttoSellingServiceCustomizedProductEmergingtechnologiesinmanufacturingindustryAIDigitalTwinIoTPlatformAR/VR…2©2017Gartner,Inc.and/oritsaffiliates.Allrightsreserved.DeterminetheRightKindofEcosystemtoPursueBusinessEcosystemsCommercialInterestInnovationDevicePlatform3©2017Gartner,Inc.and/oritsaffiliates.Allrightsreserved.ShiftFromProducingProductstoProducingEcosystemsSource:Haier4©2017Gartner,Inc.and/oritsaffiliates.Allrightsreserved.FromSellingProducttoSellingService5©2017Gartner,Inc.and/oritsaffiliates.Allrightsreserved.CaseStudy:SKF'sShiftFromComponentProducertoKnowledgeEngineeringPartnerSource:SKF46©2017Gartner,Inc.and/oritsaffiliates.Allrightsreserved.WhileYou'veBeenThinkingAboutCustomization…Profitability—NPDStudyCustomersarewillingtopayupto25%moreforcustomizedproducts25%BrandingIncreaseinFacebooktrafficforcustomizedproduct870%ReinventChangebusinessmodeltoreinventFrom$50mto$57b100xTrendsMinecustomizationdatatocreatenewmassproductionproductsuccesses$10bCustomerRetentionCustomizedproductcompaniesseemuchhighercustomerretentionrates65%+FewerReturnsReducereturnswithcustomersinvestinginpersonalizedproductsSource:CustomNation7©2017Gartner,Inc.and/oritsaffiliates.Allrightsreserved.Pioneer:Dell'sConfigurableProductLine8©2017Gartner,Inc.and/oritsaffiliates.Allrightsreserv...