Automation and AI Are Key for Manufacturers’ Go-To-Market Strategy

In this article, Johan Boström, co-founder and CPO at inRiver highlights insights from a recent research report conducted by inRiver. The study explores the advantages of innovative technologies like automation and artificial intelligence in the manufacturing sector. 

Even with the effects of the pandemic on the global economy in 2020, 87% of manufacturers indicated that they’re facing more competition now than they did just a year ago, according to a new survey by inRiver.Opens a new window In the wake of COVID-19, a significant percentage of buying shifted online, putting pressure on a majority of B2B manufacturing businesses to get products to market faster. And while it’s hard to say exactly what drove the spike in competition over the last twelve months, an increasingly global marketplace and evolving suite of technologies are certainly factors changing the way manufacturers go-to-market. 

Adapting to Market Challenges With New Technologies

In a year filled with disruption, manufacturers had to adjust quickly to changes in market demands for specific products (such as toilet paper, hand sanitizer, and masks) and in consumer expectations due to local political and social disruptions, growing environmental concerns and sustainability demands. In addition to these changing requirements, manufacturers that moved operations to a global marketplace must now adopt technologies that allow them to deliver the right product information, right away. To do this, most manufacturers are adopting automation and artificial intelligence (AI) to help them stay ahead of the competition. 

According to the inRiver survey, 95% of manufacturers are using automation and AI to tailor product information for different channels. This is a staggeringly high percentage leading the curious to wonder how each organization defines automation and AI. 

Does automation include marketing automation, such as automated email messages and posts on social media? Is adoption of AI limited to product recommendations? If so, while automated emails and product recommendations are both important, automation and AI can deliver a lot more value when it comes to staying competitive.

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How Automation Solutions Can Help Organizations Become Agile

For example, automation solutions can help organizations become more agile in adapting to changing market conditions, as well as enabling them to create product portfolios that include central management systems and single versions of product marketing data. This helps them to provide consistent and complete product information, customized in the right language and currency, while using images appropriate to the region. 

Newer technologies, such as the cloud and Software as a Service (SaaS) also enable them to scale more quickly and easily across marketplaces. Meanwhile, beyond product recommendations, many e-commerce retailers use artificial intelligence to analyze customer comments, deliver personalized services or experiences, and provide chatbot services. Some chatbots also use AI to automatically offer free shipping and discounts, helping to increase conversion rates. 

Increasing conversion rates online is a critical priority for these businesses, and technology is helping achieve that goal across the board. Survey respondents also indicated that product information technologies helped the most with this goal. While other improvement drivers are all related to technology as well. 

The survey highlights that easier comparison with competitors’ offerings (54%) is a priority, 53% prioritize reviews and visual user-generated content, and 47% prioritize 3D images and virtual reality. 

Technology, including automation and AI, are the backbone these industries must rely on to realize these priorities remain competitive in the global marketplace. 

Take global wind energy leader, Vestas. With a footprint spanning 82 countries, the company has adapted to a growing demand for sustainable energy solutions by investing in ongoing digital transformation efforts. For example, Vestas has an online marketplace for spare parts, from which customers can find thousands of parts, from nuts and bolts to blades, from different suppliers. Before investing in an automated product management system, its product information was transferred via manual processes, creating highly inefficient workflows across the enterprise. Its ongoing investment in automated solutions has helped Vestas build out a scalable, digital platform that optimizes their customers’ shopping experience and offers them innovative service offerings. 

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The Future of Manufacturing Is Bright, But Challenges Remain

The pressure to stay ahead is also driving the majority of businesses in the industry to change their business model; according to the survey, 88% admitted doing so to compete in the current market conditions. It’s not surprising, given the massive shifts in supply and demand, that they sought to change, because manufacturers as an industry have been hampered by outdated technologies and complex supply chains. The acceleration of digital commerce in 2020 made change an imperative.

Despite the adoption of automation and AI, challenges remain for the manufacturing industry. Many respondents still struggled with launching new products to market, primarily related to gathering product information (27%) and struggling with technological limitations (20%). While gathering product information is always going to be essential, whether it’s challenging or not, technical limitations can severely restrict a manufacturer’s ability to go to market quickly and deliver product data in the right format, language, and currency. That’s probably why 90% of the survey respondents agreed that product information task automation is increasing. These solutions can help multinational companies to maintain accurate product information, regardless of where it’s displayed. 

Those who adapted their business models in response to changes in the digital commerce space are now seeing success against the competition, particularly when it comes to their ability to react to new changes with flexibility, speed, and intelligence. Technology will continue to play an important role in the industry over the next several years, which is why it’s critical for manufacturers to ensure a streamlined approach to product information management across channels in order to drive revenue and stay ahead in today’s competitive marketplace.

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