A multitude of digital solutions are available today, from a plethora of vendors. What should industrial companies consider when choosing a digital service provider?

Companies also need to be mindful of technologies and trends that could disrupt the existing business model

Companies should consider four factors when selecting a digital vendor

1. The existing system: Take the vendor’s knowledge of the current technology stack into account. This can be beneficial for integration.
2. The type and extent of digital solutions: Think about the value at stake, ease of implementation and strategic importance. Prioritize solutions based on a nuanced understanding of the vendor’s solution against your unique requirements.
3. The industry and vertical: Assess the vendor’s strengths in the specific industry vertical of interest. Many vendors seem to have similar offerings on the surface, but their actual solutions and strengths across verticals may be different.
4. The ability to future-proof: Prepare for future disruption by selecting vendors with strong after-sales service, expandable solutions and compatibility with other systems.

The authors would like to acknowledge the contributions of Michael Schertler, a Bain partner in Munich.