Executive Summary: ISG Provider Lens™ Digital Engineering Services - U.S. 2022
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ISG Provider Lens™ Digital Engineering Services - Platforms and Applications Services - U.S. 2022
Digital services are recasting manufacturing and production sector.
The digital engineering space is witnessing a wide adoption of various technologies, spurred by the digital revolution in the manufacturing industry with its strong potential to drive productivity. Digital technologies that are used by production and manufacturing companies help create a data lake at all phases and stages of the production line, capturing every piece of information that can optimize or improvise the process in every dimension. On the other hand, traditional engineering methodologies are human intensive and offer reserved guidance and insights from the transactional data generated at every point.
Technology plays a crucial role in an open, complex and integrated engineering stream that spans various complex systems and platforms.
The processes, services and customer experience help define sustainability and relevance in the right market. Design and development activities have always been at the inception points of every engineering initiative. The U.S. has always led the way for adoption and innovation, given its large consumer base. Almost every new idea or concept is prototyped in this marketplace. Transformation and innovation are at their peak due to evolving work methods, and business models. As a result, service providers have changed their engineering strategies and adopted, developed and leveraged capabilities to cater to the core manufacturing and product development industries.
Midsized and big multinational engineering clients have elevated their demands on digital engineering services. This has been the driving force for providers to respond quickly and effectively by restructuring their capabilities in driving technology adoption. As a result, digital engineering transformation services have emerged, including new capabilities to support digital product design in real time and other competencies around data-driven product lifecycle management, intelligent manufacturing operations, and digital customer experience delivery services. The increased adoption is further driven by AI powered R&D, autonomous testing, simulations, augmented and virtual reality applications, digital twins and predictive machine learning. Intelligent supply chains, Industry 4.0, intelligent connected machines and IoT are some of the critical enablers for engineering services transformation.
Platformization is a major trend in the U.S., leading to new developments. Innovation and research have become favored investment areas to create opportunities. Large engineering service provider companies have now directed their focus toward building non-traditional technical platforms that act as an enterprise service bus to incorporate with and connect to any platform spanning from engineering to user experience. This is driven further by the demand from manufacturers and OEMs for such integrative platforms. Studying user patterns and consumption trends helps product companies intelligently improvise the connected product experience by encompassing complementing services and products through a platform.
Processes and workflow phases have been digitized and automated, especially for connected and intelligent operations in discrete and process industries. As a result, integrated customer and user engagements see drastic changes at an operations level.
The infusion of technology from AI, machine learning and data analytics is improvising and presenting new dimensions to every engineering phase. Furthermore, the adoption of emerging technologies in the manufacturing and production sectors has spiked due to new consumer behaviors, an evolved set of requirements, new consumption mechanisms and educated clientele. As a result, there is constant pressure to reengineer products that meet current and future market expectations.
Product definition in the engineering and manufacturing industries has changed after the digital revolution. Software products are an essential component of the entire value chain spanning from inception to experience. Almost all heavy manufacturing industries have started to refine digital products and analyze how end users, consumers and markets leverage products. Engineering service providers are building software by using innovative digital architecture, components and programs to redesign solutions and products. They also leverage methodologies, frameworks and practices from every technology engineering domain.
Furthermore, augmenting human and machine-generated data and advanced analytics tools are fueling the metaverse with futuristic technologies that have a powerful relevance and prominence in the engineering industry, transforming the entire spectrum of products across industries for modern times. Such technologies have helped enhance the skill matrix and engineering competencies, creating avenues for technology skills in the engineering sector.
The use of emerging technologies has a drastic impact on many vital areas such as decarbonization that require immediate attention. The data points captured and processed through various dimensions at every transaction point provide insights that directly reduce friction, consumption and dissipation of natural resources, leading to optimized operations and high-cost savings.
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