Creating a world-class machine requires careful consideration of multiple factors, and high-quality software is undoubtedly one of them. However, small manufacturers, especially SMEs, often face challenges in acquiring such software due to limited funds, resources, and in-house expertise. Building an internal team or outsourcing software development can be expensive options for them. This blog highlights the benefits of a third approach – the non-exclusive software license model, where the partner software organization retains the intellectual property rights. This model offers a win-win situation, enabling small manufacturers to access top-notch software solutions while minimizing costs and leveraging the expertise of software providers.
The non-exclusive software license model can indeed be beneficial for small manufacturers for a number of reasons:
1) Cost-Effective: Small manufacturers often have limited financial and human resources to invest in digitalization initiatives. Acquiring the necessary technology, expertise, and infrastructure can be a significant hurdle. Non-exclusive licenses allow small manufacturers to access and use software at a lower cost compared to exclusive licenses. This is particularly advantageous for small businesses with limited budgets, as they can leverage the required software without significant upfront investments.
2) Reduced Maintenance and Support Burden: Non-exclusive licenses often come with maintenance and support services provided by the software vendors. This relieves small manufacturers from the burden of managing and maintaining the software themselves, allowing them to focus on their core business activities.
3) Innovation and Adaptability: Non-exclusive licenses encourage innovation and experimentation within small manufacturing businesses. They can explore and adopt new software solutions or technologies that align with their specific needs and goals, fostering adaptability and staying up-to-date with industry advancements.
4) Collaboration and Compatibility: Non-exclusive licenses promote collaboration and compatibility among different software systems. Small manufacturers can integrate multiple software applications from various vendors to streamline their operations, improve data sharing, and optimize workflows.
Overall, the non-exclusive software license model offers small manufacturers affordability, flexibility, scalability, access to diverse solutions, and the opportunity to innovate and collaborate effectively. It allows them to leverage software tools and technologies to optimize their operations, improve productivity, and gain a competitive edge in the market.