ADVANCED SERVICES BUSINESS MODELING
Parallel to connectivity technology advancements as well as the 4th industrial revolution, OEMs are more than ever enabled to capitalize on advanced service agreements, which are focusing on outcomes and performance of the machinery and processes at the customer side rather than legacy and reactive service offerings.
Such trends are paving the way for as-a-Service equipment offerings, enabled by technology and advanced data analytics. With the help of advanced services business modeling, OEMs will be able to gain an average revenue of 5x the equipment value during servitization-based contracts.
WE SUPPORT YOUR JOURNEY TO CAPITALIZE ON NEW SERVICE DESIGN WITHIN THESE THREE AREAS
ADVANCED AFTERMARKET SERVICE CONTRACTS
Advanced aftermarket service contracts are focusing on the outcome and output of the customer processes by improving the efficiency, adaptation, and uptime of the machinery used in the process. KPIs used in these agreements are customer-focused, and proper fulfillment of those will create higher value perception in the eyes of the customers and therefore a higher willingness to pay when it comes to value capturing.
THREE FOCUS AREAS OF ADVANCED SERVICE AGREEMENT DESIGN:
Value Creation
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Customer-centric service design
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Product-service development
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Market understanding
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Go-to-market strategy
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Change management
Value Delivery
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Digital delivery & sales enablement
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Capacity management
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Product-service availability
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Effective delivery process
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SLA and KPI management
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Partner relation management
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Change management
Value Capturing
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Long-term customer engagement
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Managing utilization rate
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Value-based pricing
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Risk management
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Salesforce development
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Digital sales support tools
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Change management
DATA MONETIZATION
5G and Connectivity Technologies are opening doors to new service offerings and recurring revenue models based on data and analytics. OEMs are enabled to monetize data both on access to raw data and/ or provision of analytics outcomes. This way, OEMs can increase their service maturity and fit-for-market from reactive service offering to proactive and prescriptive service offerings, based on real data and customer requirements.
AS-A-SERVICE OFFERING
An ultimate maturity level on performance-based service offering is to take full responsibility for equipment utilization and accompanying risks; and charge based on customer processes KPIs, such as pay per use, pay by the hour and pay per cycle.
In such a business model, which is also known as Servitization, OEM remains the owner of the equipment/asset. On the other hand, the customer fully outsources the operations and pays based on the benefits achieved by utilizing the equipment. Such an as-a-Service business model creates the highest level of willingness to pay in the eyes of the customer.
