New Supplyframe, Lifecycle Insights Study Highlights Growing Electronics Product Complexity, Clear Benefits of Targeted Digital Transformation Initiatives
New research from Supplyframe and Lifecycle Insights indicates that the targeted investments that global manufacturing leaders are making in digital transformation initiatives are resulting in more successful product launches. A new 2021 NPI and Sourcing Study surveyed over 250 product design, engineering, manufacturing, and supply chain professionals who work in organizations across industries like consumer electronics, industrial equipment, automotive, and telecom. Participating organizations averaged between $750 million and $2 billion in revenue. The results of this study clearly highlight how innovation in the areas of new product introduction and cross-functional collaboration with supply chain, procurement, sales, and finance can improve key performance indicators such as product gross margin, time to market, market share gains, and reduced exposure to supply chain risks.
"Manufacturers face unprecedented challenges due to today's supply chain shortages, product complexity, and competitive pressures," said Richard Barnett, chief marketing officer of Supplyframe. "As our research shows, manufacturing leaders are investing in digital transformation initiatives to ensure resiliency at the point of design - rather than attempting to mitigate risk after their products have gone to market."
Nearly two-thirds (63%) of survey respondents reported that products include a higher number of components and indented levels in product bill of materials (BOMs). This illustrates the rising complexity of modern electronics designs and the need for new approaches to manage risk.
The survey results also show that most progressive organizations deliver 15% more of their development products on time and incorporate greater cross-functional participation in their new product introduction (NPI) processes.
"To be successful today, manufacturers must improve their NPI processes to streamline communication, expedite design and production, and reduce waste and scheduling mishaps," said Chad Jackson, chief analyst and CEO of reearch and advisory firm Lifecycle Insights. "Our work with Supplyframe suggests many progressive organizations understand that and are using new forms of intelligence to increase their efficiency and resilience amid growing complexity."
"While some organizations have launched efforts to modernize NPI processes, many manufacturers that use electronic components and semiconductors in their products still rely on outdated information and limited cross-functional tradeoff analysis," added Barnett. "These approaches fail in today's highly dynamic market conditions. A better approach is to embed predictive supply intelligence and dynamic risk grading into a digitally transformed NPI process. Businesses that accelerate innovation in this area can directly impact top-level corporate performance and exceed customer expectations."
Supplyframe NPI can accelerate such initiatives and create new forms of data-driven decision making. It empowers intelligent collaboration throughout the design process, providing design engineers and NPI managers with intelligent part recommendations, collaborative BOM validation, and risk mitigation features that create a digital thread through sourcing and manufacturing. Surfacing actionable insights to product and sourcing teams at the point of design accelerates innovation while optimizing costs and mitigating the risk for downstream supply disruptions.
Supplyframe and Lifecycle Insights will release the study findings in a six-part article series on Supplyframe Resources, culminating in a Dec. 2 webinar during which Barnett and Jackson will discuss the study's findings. Click here to register for the webinar and get a link to the articles.
Supplyframe's unmatched industry ecosystem, and pioneering Design-to-Source (News - Alert) Intelligence (DSI) Solutions, are transforming how people and businesses design, source, market, and sell products across the global electronics value chain. Leveraging billions of continuous signals of design intent, demand, supply, and risk factors, Supplyframe's DSI Platform is the world's richest intelligence resource for the electronics industry. Over 10 million engineering and supply chain professionals worldwide engage with our SaaS (News - Alert) solutions, search engines, and media properties to power rapid innovation and optimize in excess of $120 billion in annual direct materials spend. Supplyframe is headquartered in Pasadena, Calif., with offices in Austin, Belgrade, Grenoble, Oxford, San Francisco, Shanghai, and Shenzhen. To join the Supplyframe community, visit supplyframe.com and follow us on Twitter, Instagram, and YouTube.