Building a world-class machine takes many things, and high-quality software is one of them. Small manufacturers, and SMEs in particular, often struggle to get it. Funds, resources and in-house expertise are limited, and building an internal software team or outsourcing development can both be expensive.
There is a third approach: a non-exclusive software licence, where the software partner keeps the intellectual property and licenses the software to many manufacturers. Small manufacturers get proven software at a fraction of the cost, and benefit from the provider’s expertise.
The model helps small manufacturers in several ways.
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Cost-effective. Small manufacturers have limited money and people to invest in digitalisation, and acquiring the technology, expertise and infrastructure is a real hurdle. A non-exclusive licence costs far less than exclusive or custom-built software, so a small business can use the software it needs without a large upfront investment.
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Less maintenance and support burden. Non-exclusive licences usually include maintenance and support from the software vendor. The manufacturer doesn’t have to manage and maintain the software itself and can focus on its core business.
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Innovation and adaptability. Because every licensee benefits from the provider’s ongoing development, manufacturers can adopt new features and technologies as they arrive and keep up with the industry without funding that development alone.
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Collaboration and compatibility. Software built for many customers is designed to work with a wide range of hardware and other systems. Manufacturers can integrate it with other applications to streamline operations, share data and improve workflows.
Overall, a non-exclusive licence gives small manufacturers affordability, flexibility and access to proven, continually improving software. It lets them use modern software to improve their machines and productivity and compete with larger players.