Startups have the potential to change the rules of the game for manufacturers. By identifying the right partners early on and using their potential effectively, manufacturing incumbents can benefit from the innovations of these pioneers. Companies such companies provide concrete use cases in the industry, resulting in new offerings and improved efficiencies. Funding for manufacturing startups, which has amounted to around $12.7 Bn
The above-mentioned are only a few examples of startups, technologies, and their impact. Generally, manufacturing startups can be divided into six clusters:
1) Industrial Internet of Things (IIOT), which connects machines and devices and provides an extensive set of data for further use.
2) Robotics and drones, boosting manufacturing efficiency and automation.
3) Machine learning and artificial intelligence (AI), which serve to increase machine performance and speed up transformation of industrial processes and automation.
4) Maintenance and service technologies, enabling new business models and service-efficiency boosts.
5) Additive manufacturing, which provides new manufacturing processes, challenging traditional manufacturing of components and consequently machine manufacturing’s business models.
Startups in these clusters provide specific advantages over manufacturing incumbents. Their ability to take risk enhances their innovativeness and opens new sources of funding from venture capital and private equity. A greater affinity for risk, combined with relatively small size and flat hierarchies, enables fast decision making and agile implementation, shortening the time to market of new technologies and products. Independence is another competitive advantage: While incumbents typically innovate to solidify their own positions, startups open their technologies and platforms to the industry, generating network effects and establishing new industry standards.
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