Despite technological advances, the construction and agriculture sectors lag others in the productivity gains associated with digitization. McKinsey research suggests the following five ways OEMs in this industry can capture value:
- Address critical control points in the ecosystem. Ecosystems—a collection of entities that can partner to serve customers better—allow OEMs to learn from other players in areas like agile development methodologies and the creation of a single vision of desirable end-products for all stakeholders.
- Develop a deep understanding of customer decision journeys. The top factors influencing customer decisions in adopting a new technology are personal testing, observing the application of the technology, advice from friends and colleagues, detailed information, and expert opinion.
- Adopt two-speed R&D. OEMs must attract and retain software developers, as well as invigorate their R&D processes. They should also implement a two-speed approach for developing new online features.
- Drive productivity improvements to fund new technology. OEMs can employ advanced analytics, artificial intelligence and automation to drive internal productivity gains to fund new technologies.
- Rethink the talent model. OEMs need to look at different talent pools, restructure work assignments and market themselves to different elements of the workforce.