The four pillars of successful machine building
Mitsubishi Electric - Factory Automation EMEA
Welcome to the official Mitsubishi Electric Automation systems account for Europe, Middle East and African region
In today's rapidly evolving industrial automation landscape, machine builders face the twin challenges of staying competitive while delivering value to their customers. Richard Allen, Mitsubishi Electric's Business Development Lead, recently shared his thoughts on how to tackle these issues on the "Building Better Machines" podcast.
With over 38 years of experience in automation, including seven at Mitsubishi Electric, Richard offers a unique blend of technical and commercial expertise. His insights deliver a roadmap for machine builders to innovate, increase efficiency, and thrive in a competitive market by focussing on four crucial pillars: cost reduction, differentiation, revenue growth and risk mitigation.
Cost reduction: the foundation of competitiveness
“In today's intensely competitive global market, streamlining processes and minimising expenses is essential to remaining both flexible and competitive,” begins Richard. “Using powerful machine design and simulation tools can allow potential problems to be solved even before the machine is being produced."
This approach represents a paradigm shift in machine building, extending beyond the design phase to encompass the entire lifecycle of the machine. By leveraging advanced simulation technologies, OEMs can identify and resolve potential issues virtually. Doing so can dramatically reduce the R&D process, which not only achieves significant long-term cost savings but also improves product quality and reliability.
“Implementing lean methodologies and embracing digital tools for design and simulation are now necessities for staying competitive. Machine builders who master these techniques can not only significantly reduce both their time-to-market and operational costs but also gain a crucial edge in the market,” adds Richard.
Differentiation: standing out in a crowded market
"We need to help the machine builder to stand out in an increasingly crowded marketplace when it comes to machine performance, reliability, or even machine cost" he continues. “However, differentiation is not just a marketing strategy, it should be a central part of a business’s growth plans.”
The key is creating unique value propositions that address specific customer pain points. This could involve developing machines with unprecedented precision, creating ultra-durable equipment for harsh environments, or designing energy-efficient machines for cost-sensitive sectors. With Industry 4.0, differentiation extends to user experience, with customers expecting intuitive, connected machines capable of seamless integration with existing systems.
Here, Richard encourages machine builders to ask themselves what unique value they can offer that their competitors can't: “This might mean specialising in niche markets, developing proprietary technologies, or offering unparalleled support and training services,” he continues.
“The goal is to understand customers' needs deeply and leverage unique strengths to meet those needs in ways competitors can't match.”
Revenue growth: expanding beyond hardware
The third pillar focuses on increasing revenue through new business models, as Richard explains: “New services, such as being able to offer ‘Software as a Service’ cloud hosted maintenance services can open up new and recurring revenue streams for machine builders that complement traditional sales.”
领英推荐
These services can include predictive maintenance using IoT sensors, performance optimisation, training, and outcome-based models. Richard continues: "Access to machine data opens up new possibilities for value-added services. It's about providing ongoing insights and optimisations that directly impact the customer's bottom line.
“This approach not only creates new revenue streams but also deepens customer relationships and informs future product development.”
Risk mitigation: ensuring reliability and compliance
The final pillar focuses on eliminating risk through reliability and regulatory compliance. Here, Richard stresses the importance of component quality to maximising productivity: “True reliability stems from using high-quality components, rigorous testing, and predictive maintenance. It isn't just about preventing breakdowns; it's about building trust with your customers."
On the subject of regulatory compliance, Richard encourages machine builders to familiarise themselves with new regulations such as the EU Machinery Regulation and Cyber Resilience Act. He notes: "Compliance shouldn't be seen as a burden, but as an opportunity to demonstrate your commitment to safety, security, and quality."
Creating value for end-users: the ultimate goal
"We assist machine builders in creating value for their customers by offering access to extensive machine data which allows the end user to visualize valuable metrics. In turn, this can lead to more efficient production, improved energy efficiency, and intuitive maintenance regimes" Richard adds. “This data-driven approach converges all four pillars, creating a virtuous cycle of continuous improvement and value creation. The future of machine building lies at the intersection of these four pillars.”
Summarising his key takeaways, Richard concludes that the machine builders who will succeed in the coming years are those who can seamlessly integrate hardware excellence with software intelligence and service innovation. “It's about creating an ecosystem of value for your customers, not just selling a product. By embracing these pillars and continuously innovating, machine builders can thrive in an increasingly competitive global market, turning challenges into opportunities for unprecedented value creation.”
Check out our latest live “Building Better Machines”: https://youtu.be/r8dupQZnQ18?si=1KiJtRHif7ANxWD1
Read more:
R&D interim | startup advisory boards
1 周Regarding costs only the engineering costs are mentioned. For one off machine development these are indeed a large contributor. So use standard hardware and software platforms instead of developing your own. If a machine will be produced in volume also the cost of the Bill of Material has to be managed. Regarding reliability the selection of high quality products is not enough. For each component its specified and actual local field of use for various operation modes of the machine has to be compared to assure a component is not overstressed, reducing its specified lifetime.