Companies have dramatically reduced the total cost of managing multiple products, for example in the car industry, by designing platforms that they apply across models. This lets companies simplify product lines as well as supply chains.

1. Copyright © 2017 Tata Consultancy Services LimitedMay 2017
How To Lighten Up Business Models
PERSPECTIVES VOLUME 8
Milind Lakkad
Vice President and Global Head of Manufacturing

2. Six Ways to Become Lighter
1. Becoming nimble
and competitive
2. Enabling
customer
convenience
3. Creating new
revenue streams
4. Making a case for
new technologies
5. Using M&A for
strategic growth
6. Building an IoT-
enabled world
Manufacturers worldwide are simplifying and reimagining business models, by:

3. Reduce the total cost of
manufacturing by
standardizing platforms
across products
Consolidate suppliers and
harmonize components
Become Nimble and Competitive

4. Integrate potential
touch points and make
it easier for customers
to do business with
you
Enable Customer Convenience
Embrace change and
tap into insights about
customers and
their needs
Reduce costs by
doing business
online

5. Explore new business models that take advantage
of modern technology
Employ cloud technology and analytics to monitor
products even in the hands of the end-user
Use these insights to provide exclusive services
and earn additional revenue
Create New Revenue Streams

6. Scrapping those in favor of new
technologies is an uncomfortable
decision
Manufacturing companies invest heavily in
equipment that lasts for years
To ease into this, companies can
experiment with contract manufacturing,
divestiture, and similar business solutions
A Case for New Technologies

7. Use M&A for Strategic Growth
Companies rely on
M&A as an important
strategy for business
growth
Organizations need
strong leadership to
integrate business
models after M&A
This requires
strong executive
sponsorship and
strategic focus

8. Build an IoT-enabled World
Manufacture products
that generate and
transmit data even
when on the field
Move from B2B to a
B2B2C business
model with such
products
Earn annuity
revenues from
services

9. Become smarter,
lighter, and more
customer-centric
Earn additional revenues by
providing timely services
Pursue the ideal
paradigm: design
anywhere, build
anywhere, and sell
anywhere
Business Models of Tomorrow

10. Copyright © 2017 Tata Consultancy Services Limited
How To Lighten Up
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