The increased competition brought about by suppliers from low-cost countries and the diminishing competitive advantage due to advances in productivity are making it more difficult for many industrial companies to differentiate themselves through technology. At the same time, globalization is leading to an increase in fluctuations in demand. As a result, global business management has become a key success factor in taking take advantage of synergies and in countering volatility.
Moreover, complexity is on the rise; on the one hand as a result of heterogeneous product demands from local markets and the necessity for differentiation via business models in systems business, solutions business and service business, and on the other hand due to technology trends such as energy efficiency, mechatronization, Big Data or Industry 4.0. Companies must be able to both limit and master complexity.
Harmonized and standardized IT systems which support uniform processes for each business model are the strategic levers of increasing efficiency. They make it possible to enter new regions quickly and efficiently, to adapt the allocation of value creation in the triad regions, and to improve performance management and communication across national borders. The basic requirement for this is that standards are rigorously derived from the business models and the resulting process requirements.
As flexible customer solutions often require value chain elements from different regions with heterogeneous characteristics (e.g. software, semi-conductors, mechanical parts, electronics) and price pressures are rising, performance management based on margins calculated at group level is becoming increasingly important.
Companies who wish to be successful in competitive markets must be able to offer flexible customer solutions. As a result, sales is increasingly becoming a catalyst and coordinator of functional areas in companies. Sales performance excellence and sales performance management must increasingly reflect the internal perspective.
High pricing pressure and shorter innovation cycles with higher development costs make the performance management of product innovation a key success factor. The rigorous performance management of innovation, development and technology projects from the product idea to the announcement of discontinuation requires process discipline, rigorous market orientation, real multidisciplinarity and openness.
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