For years, I have seen manufacturing companies start digital projects, create websites and apps, and spend a lot of money, but then abandon them. The pattern is almost always the same (and trust me – it’s not just in manufacturing). I was asked to write an article about the common problems of platforms and digital business models in the manufacturing sector.
But listen to me – it’s not all bad. There is real potential here. If you use customer and production data correctly, you can reduce delivery times, manage capacity more efficiently, and find new ways to make money. You can even create new business models. As I always say in my articles, the problem is rarely the technology.
The real problem is that platforms are built for the people who make them.
The most common mistake starts with the idea – or your “idea”. Manufacturers build digital platforms from their own perspective and forget about other people. If a platform only benefits the manufacturer, it won’t reach critical mass. That’s it.
Digital models that work well create value for everyone involved. This may sound obvious, but it is often forgotten. Think about what the customer will get out of it. What does the supplier gain? If you can’t express that in numbers, the model isn’t fully thought out. You might even want to start with a platform that doesn’t have any monetisation in mind. This would add another layer of complexity that could kill the digital business model before it has a chance to take off.
The chicken-and-egg problem – and how to solve it
All platforms have the same basic problem at the start: customers only come if there are enough manufacturers. Manufacturers only invest if there is enough demand. If you try to solve this problem in a general way, you will not succeed.
The answer is to focus. This is not a platform that everyone will use, but it is a very good solution for a specific group of people. We make very accurate parts for medical technology. We use computer-controlled machines to make things for a specific sector. Start with the customers you already have and build your first group from there. This is not a compromise – it’s a strategy.
Data: the industry’s biggest problem that has not been solved
ERP, MES, CAD, quality assurance – in most manufacturing companies, each system works in a different way and is not connected to the others. If this continues, each platform will stay separate.
Deciding on a standard data architecture is not just an IT decision – it’s a strategic decision. And yes, that also means sharing data – even with partners. This is exactly where most people hesitate. But those who can access real-time data on capacities and production progress can do things that were previously impossible. This includes things like dynamic pricing, predictive maintenance and automated order allocation.
Data governance is not just a way of making things more complicated – it is really important if we want people to trust us. You can also be thankful for things like GDPR because it has helped you find out what the best ways to do things are. Customers expect you to follow these guidelines.
You can’t take trust for granted.
You might not think that manufacturing is the kind of thing you “secretly browse” or “look at your personal financial information” online, but you should know that information like designs, how things are made, and how much things cost is also shared online. Companies will only do this if they trust the system and the person who runs it.
In simple terms, this means clear rules in contracts, transparency regarding data use, traceable access controls and, in case of doubt, a neutral consortium model as the operator. Certifications such as ISO 27001 or TISAX are not just nice to have – they are essential for being able to sell your products in the market.
Why do many platforms get stuck after they are launched?
It’s easy to solve technical problems – most of the time. It is the complexity of organisations and the fact that they are stuck in their ways that can destroy platforms, digital business models or even just digitalisation. Manufacturing is different for each product: different materials, different quality standards, different requirements for orders. If a platform doesn’t reflect this, it will quickly reach its limits.
The solution is not a universal system, but modular process components – standardised units that can be flexibly combined. Start with simple products and add more over time. That scales. Trying to map everything from the start almost always fails.
The thing that people don’t realise is how important it is to make things easy to use.
The fact that it’s for businesses doesn’t mean that it can be badly designed – it’s made for a millennial who doesn’t have any experience. Even someone who works in an office has an iPhone in the evening and knows what good software feels like. Those who ignore this will lose users to the habit of simply calling or sending an email.
Invest in real UX/UI design. Test it with real users. Offer different ways to access it: a simple interface for standard orders, more advanced options for power users, and APIs for direct system integration.
How to make money: too early is a problem
As I said before, making money is another layer of complexity. But there is another problem with making money: If you start charging people too early, they won’t use it. This is true for all successful B2C platforms, and it’s also true for B2B and other platforms. First, create something that adds real value. Then make money, but do it in a smart way, as there are many ways to make money from a website – you can make money from transactions, from selling premium features, from accelerated production services, or from data products over time.
Using a mixture of different value components is a better way to make money than using just one approach. But the most important thing is value, not money.
What’s happening right now: Manufacturing clusters as a new category
One development that I find particularly interesting is that several manufacturers are working together. They are pooling their capacities, entering the market together and offering access to a broad portfolio of services. These range from sheet metal processing to assembly. All of this is available via a uniform platform.
These digital groups spread the cost of investment, create abilities that are similar and work together to build a presence in the market that a single manufacturer could not achieve on their own. The catch is that it requires everyone to be honest and there must be clear rules in place. People who can do this will have a big advantage over their competitors.
How to get started without getting overwhelmed
Here are five simple steps I suggest:
1. First, understand your strengths and how mature your business is.
2. Then, ask your customers what the problem is.
3. Work out what the problem is.
4. Create a hypothesis.
5. Build something valuable without getting distracted or trying to make money too soon.
6. Then, make it bigger and grow your new business model.
How can you tell if someone is mature? What information do you have to work with? Where are your customers struggling the most? First understand the basics, then start building.
Come up with an idea and explain how it will benefit everyone involved. It’s not just for you. The technical architecture and two realistic business models, including a strategy for making money.
Launch MVP – Start small. An MVP can also be manual. The best teachers are the people who have been using it for a while — if you listen to them.
Scale means growing in a steady way, building a community and working with other companies.
Transform – At some point, the platform will no longer be a project, but a central part of the business strategy. Then we need to think about structures and culture.
