MES providers are benefitting from the growth of the global MES industry which according to the report, grows 7.1% per year and is expected to reach USD 3.1 trillion in 2015. In particular, international MES providers who provide full service, cross-regional, cross-industry, customized services, coupled with a comprehensive network and local market know-how are those best positioned to take advantage of that growth.
To stay ahead of competition, it is however imperative for MES providers to offer not only solid core services such as sales and marketing, but also additional, innovative services, tailor-made according to the needs of their clients and customers. Successful service innovation allows MES companies to stay competitive and create a market advantage for themselves in the long run.
Catering to the different needs of every client and customer
New service solutions are essential, but there is no “one-size-fits-all” solution and the services need to be customized to clients’ and customers’ needs. Equally important is the ability of service innovation to bring tangible value, where 37% of the survey participants sought top line benefits such as a boost in sales or an increase in efficiency. Examples of innovative services which are in demand by managers are market insight services, such as market data and intelligence, market entry studies and brand analyses, which will allow them to make better strategic decisions.
Requirements for service innovation vary across industries and manager type. While consumer goods companies give priorities to services that help them better understand and reach their buyers, pharmaceutical companies prefer market insight and relationship management services such as market research, key account and relationship management.
Specialty chemicals companies are more willing to pay for services that deliver market intelligence to meet the strict and complex regulatory requirements, while companies in the engineered products industry are keen on performance management, which allows them to better plan and manage their business such as in providing after-sales support or spare parts services. The role of the managers need to be considered as well – managers with regional responsibilities tend to demand strategic services that help them make better decisions, whereas country specialists prefer customized services related to local operations.
The study also identified that service level differs from country to country. Through the newly introduced Service Development Index (SDI), countries have been grouped into five clusters: Leader, Pursuers, Chasers, Attackers, and Starters. The SDI is measured according to the level of service sophistication of the countries, and underlines how crucial it is for MES providers to customize their service offerings according to the level of service sophistication and requirements in each individual market.
Service innovation is built on platform, exposure and relationships
In addition to the prerequisite of close collaboration in defining service innovation – over 50% of clients and customers expect to be actively involved – the report has identified three success factors – platform, exposure, and relationships. Findings indicate that full-service, cross-industry international MES providers are unquestionably best positioned to realize the potential of service innovation in Asia by: building a robust platform to nurture service innovation; employing the scale of exposure to leverage services and best practices across industries and regions; implementing resources and commitment to build lasting relationships; and exploiting the capabilities and expertise to provide the solution exactly tailor-made to requirements.
- MES remains a highly promising sector in the outsourcing industry with an annual growth rate of 7.1% globally and 8% annual growth expected for Asia alone
- Continuous service innovation bring new business and growth opportunities, and are critical for the superior competitive position and long-term success of MES providers, their clients and customers
- There is no “one-size-fits-all” service solution that can be applied as the level of service sophistication varies from country to country
- Collaboration is the key success factor for service innovation which involves a close and trusting dialog between the provider and their clients and customers, so as to develop tailor-made innovative services that really fit their needs
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