The perspective of manufacturers and operators of industrial as a Service

Machines, vehicles and new equipment are no longer operating in isolation. They are becoming connected and integrated. Business success will depend on the ability to deliver value added solutions in the ecosystem and to share the value creation with customers and suppliers. Digitization requires and enables to switch form the traditional product driven asset transfer model into value-based «Equipment-as-a-Service (EaaS)» offerings:

  • Monetizing value creating solutions such as electrification, automation, autonomy, and capacity management require appropriate ways to capture, to guarantee and to distribute value: Providing customer centric solutions means creating beyond “keeping the machinery running” through asset optimization, process optimization, operations optimization and even to business optimization. But how can the new value creation be shared between the OEM and the industrial user? Depending on the value you create, business and pricing models have to shift from selling and renting to output or outcome related models such as pay-per-use, pay-per-output, pay-per-savings or even pay-per-result. With faster and more customer specific innovation cycles the traditional “product driven” business model is more and more being replaced by a continuous “easy to start, low upfront investments, continuous improvement” logic building on usage and machine data.
  • Value creation can be priced now: By connecting equipment the foundation for offering users the service of a “billing according to use or value” has been established. Such billing models are already known from other industries which are advanced on their digitalization journey or have established the infrastructure to measure usage, e.g. Software – “SaaS”, mobility – “pay-as-you-go”, engines – “power-by-the-hour”. If the use can be measured by the electronically transmitted machine data, the invoices can be generated automatically.

By switch form the traditional product driven asset transfer model into value-based as-a-Service offerings, a new continuous customer relationship model can be implemented.