Latest news with #lifecycle
Forbes
05-08-2025
- Business
- Forbes
The Economic Shift Reshaping How OEMs Manage Products
Thomas Ryd is CEO & cofounder of a device lifecycle management leader with a mission to secure the world's connected devices. Over the past decade, industries shifted from hardware-defined products to software-driven services. From connected thermostats to smart factory equipment, physical devices are now just the starting point—what drives long-term value is the software that powers them. Within this evolution are new business models rooted in subscriptions, recurring revenue and continuous digital engagement. As a result, the traditional 'ship it and forget it' mindset no longer applies. Products must now be treated as living platforms, requiring ongoing management and improvement throughout their lifespan. Changing how products are designed and delivered, OEMs must similarly evolve and adapt how products are managed post-deployment. Moving From Hardware To Software In A Connected Economy The rise of the software-first economy didn't happen overnight, but it's clearly here to stay. Fueled by higher long-term revenue generation and overall consistency, businesses moved away from one-time transactions toward SaaS-based recurring revenue models. This approach offers predictable income, higher margins, scalable growth and often longer customer life cycles—attributes that make software companies especially attractive to investors. But this transformation isn't limited to cloud or enterprise technology. It's happening everywhere. In the automotive sector, vehicles today offer performance enhancements and advanced features, purchased via subscriptions. In industrial settings, smart machines are monitored and optimized through real-time analytics and subscription maintenance contracts. Even in the home, everyday products like appliances, lighting systems and thermostats now function more like digital platforms than static tools, complete with a list of optional, subscribed features, functionality and value. A key driver behind this transition is the Internet of Things (IoT), introducing billions of smart, connected devices into the global economy. Each of these endpoints represents an ongoing software component that must be maintained, secured, improved and funded over time. The value of a product is no longer constrained to a static state at the time of purchase. Each product, how it performs and improves over time and the revenue it generates, is dynamic, with the ability to change through its software. Software is the heartbeat, and OEMs managing it effectively are critical to long-term success. The Implications For Smart Product OEMs For OEMs, the software-first economy presents a turning point in traditional product management. The days of building a device, shipping it and moving on to the next generation are over. Today's connected products demand ongoing engagement and support beyond the point of sale. Consumers expect regular software updates, robust cybersecurity and new features delivered over time—regardless of whether they're using a smartphone, connected appliance or industrial equipment. Software-centric products place a new level of responsibility squarely on the shoulders of OEMs. It's no longer acceptable—or sustainable—to manage smart products with a hands-off strategy. The manufacturer must ensure every device remains secure, functional and compliant throughout its life cycle. To succeed in this environment, OEMs must think like software companies. They need to adopt agile development processes, deploy updates continuously, embrace a proactive, service-oriented mindset and establish a business model that supports the ongoing resource requirements. And security can no longer be an afterthought; it must be embedded throughout, from design to final decommission. Ultimately, this is a strategic shift. Manufacturers who fail to adapt risk falling behind as competitors deliver smarter, safer and more reliable products through dynamic software-first strategies. DLM: The Framework For The Software Revolution Today's OEMs need a strategic framework that supports long-term product performance, security, compliance and revenue generation: device life-cycle management (DLM). Modern DLM is a holistic, end-to-end approach to managing connected devices from concept to retirement. By implementing DLM, OEMs shift from reactive, break-fix support models to proactive life-cycle management. It helps ensure that devices stay up-to-date, resilient to threats and in full regulatory compliance throughout their operational life. This structured approach empowers OEMs to treat their devices like evolving software platforms, managing updates, security and performance just as a SaaS provider would. Without an end-to-end view of smart products, it's challenging for OEMs to capture the full scope of resources required to support the product. DLM provides the overall picture and key life-cycle stages so OEMs can adjust their business models and resource allocation appropriately. DLM As A Competitive Differentiator For OEMs operating in regulated industries like healthcare or automotive, DLM is critical for maintaining compliance with evolving cybersecurity mandates such as the Cyber Resilience Act (CRA) and NIS2. These regulations require not just secure design but verifiable processes for patching, monitoring and retiring connected devices. Even outside heavily regulated sectors, DLM marks the beginning of viewing traditional hardware products through a software-centric lens. This unlocks technical benefits like improved security, reduced downtime and faster feature rollouts while also supporting modern business models. Subscription-based maintenance plans, over-the-air (OTA) feature packages and add-on services help OEMs monetize the full life cycle of a device—an essential part of success in an economy where long-term support costs can outpace the original sale price. Forward-thinking OEMs understand that DLM isn't just about updates and maintenance but also about building a sustainable future. When leveraged strategically, it signals reliability and recurring revenue that simultaneously boosts customer loyalty. In a market where differentiation hinges on software quality and post-sale engagement, DLM is a strategic asset no OEM can afford to ignore. Future-Proofing In A Software-Defined World The line between hardware and software has all but disappeared. Every connected device is now a platform—one that must evolve, improve and remain secure over time. In this new reality, success is defined not by what a product does at launch but by how well it performs and adapts throughout its life cycle. OEMs that embrace DLM are better positioned to deliver the security, agility and customer satisfaction that today's market demands. But sustainability requires more than operational excellence—it depends on monetization. Without a plan to fund long-term software upkeep, the cost of updates and maintenance will eventually exceed the value of the original sale. To future-proof both products and business models, DLM must move from the backend to the boardroom. It's no longer a technical detail—it's a strategic imperative. OEMs who recognize this shift and invest accordingly will lead the software-defined economy. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
Entrepreneur
14-06-2025
- Business
- Entrepreneur
Entrepreneur UK's London 100: Winnow Tech
Winnow Technology is developing an ecosystem that tracks the full lifecycle of household products, including usage and end-of-life impacts Opinions expressed by Entrepreneur contributors are their own. You're reading Entrepreneur United Kingdom, an international franchise of Entrepreneur Media. Industry: Sustainability Winnow Technology is developing an ecosystem that tracks the full lifecycle of household products, including usage and end-of-life impacts. Their standardised data system provides unmatched accuracy and transparency, offering supply chain stakeholders vital insights for driving change. For FMCG companies, this detail helps identify inefficiencies, reduce risks, and create sustainability strategies that meet consumer demands and enhance resilience. For consumers, this technology simplifies complex sustainability metrics, enabling informed purchasing decisions that align with their values.
Yahoo
22-05-2025
- Business
- Yahoo
Change negotiations for Valmet's new operating model concluded in Finland and Sweden
Valmet Oyj's stock exchange release on May 22, 2025 at 11:00 a.m. EEST HELSINKI, May 22, 2025 /PRNewswire/ -- As announced on March 31, 2025, Valmet will renew its operating model to better serve customers with a lifecycle approach, and to increase efficiency in its operations. This change of operating model is part of Valmet's current work to renew its strategy. The operating model is effective as of July 1, 2025. The change negotiations related to the operating model change have now been finalized in Finland and Sweden, and as a result, 325 roles will be reduced in Finland and 108 roles in Sweden. These reductions will only impact white-collar roles. The change negotiations continue in other countries and the people affected will be known later. Separately from the recently concluded negotiations, Valmet will initiate new change negotiations in Finland within the Paper business line's Board and Paper Mills business unit concerning temporary layoffs of less than 90 days, affecting approximately 1,100 employees due to a decrease in workload and the need to improve profitability. Valmet has altogether more than 19,000 employees globally, and in Finland it employs around 6,600 people and in Sweden approximately 1,700 people. For further information, please contact:Anu Pires, SVP HR, interim SVP Marketing, Communications, Sustainability and Corporate Relations, Valmet, tel. + 358 10 672 0020 VALMET Katri HokkanenCFO Pekka RouhiainenVP, Investor Relations DISTRIBUTION:Nasdaq HelsinkiMajor Valmet has a global customer base across various process industries. We are a leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries, and with our automation and flow control solutions we serve an even wider base of process industries. Our more than 19,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward – every day. The company has more than 225 years of industrial history and a strong track record in continuous improvement and renewal. Valmet's net sales in 2024 were approximately EUR 5.4 billion. Valmet's shares are listed on the Nasdaq Helsinki and the head office is in Espoo, Finland. Follow us on | X | X (IR) | LinkedIn | Facebook | YouTube | Instagram | Processing of personal data This information was brought to you by Cision View original content:
