in manufacturing industries
how much ready are you?
Disruptive innovation in manufacturing industries through Servitization, how much ready are you?
Maturity model analysis
Servitization is a new way to think about your business. It’s a concept that enables you, the manufacturer to move beyond product selling & advance towards pay-per-use. Adapting servitization needs a realignment in your systems & processes across all functions. Broadly, it looks like a package with products and value-added services. But if you dive deeply, it is much more than that and also important to plan and execute it the right way. Following maturity model tells you how much ready you are to face the market disruption.
Defining 4 levels of maturity level to achieve servitization.
Maturity level - 1
An equipment /product sale company
It’s the core for you as a manufacturer / OEM to sell your equipment as a product. For your companies, services are mostly considered as an overhead cost which is necessary for your business. Services will be mostly provided in a reactive manner based on requests from clients. Most of your equipments will be normally operating in this level.
Maturity level - 2
A managed service provider
Entering this level, you will have backup of the most advanced technologies that enables remote monitoring, remote operations, and real-time data analysis, thus facilitating an aggregated operational system across your equipment deployments. Let’s take a look at how it can help you? You can simply locate your equipment, get notification on any errors or any malfunctions that might occur in your systems, or even the warning before it may occur. With this you can easily analyse your equipment usage, health of systems in different remote locations enabling you to initiate the basics of charge per usage. Thus, helping in providing managed services and better service planning.
Maturity level - 3
A provider of equipment in a subscription model
You at this level will have automated processes that enable pay per use business model. This will need integration of IT systems such as ERP, Field Service Management, CRM, Accounting and OT systems, to act as a single unit to enable Servitization in a seamless manner. Let’s, imagine a situation where there is a malfunction in your system, of course this scenario can affect your revenue causing you loss because the payment is processed according to the running time of your system and we don’t want to be in such a situation. So, it’s important to keep your systems running without a failure and to maintain the consistency of work. That will need a seamless transfer of information and decisions from your operational systems between different business process applications.
Maturity level - 4
An outcome based revenue model
Have you ever heard that some small daily improvements could lead to stunning results? Here on level 4 with analysis, we can make momentum in improved design, better efficiency, Predictability of machines. How can this be done? By the deployment of Digital Twins, interconnected systems giving insights on the machine and its usage by the customer, integrating this data with the business data will give insights on creating personalized approach for each customer. This will be evident, to include changes in design and other improvements, created from the innovative feedbacks. This will provide greater performance and results. At level 4, you will be offered value-based revenue models.
Results can be given as outcome-based, and the work can be done according to targeted result. Outcomes can be planned according to the different needs of different clients. A tailored model can be designed for a customer which maximizes the customer’s value and your revenue.
Equserv, is an enabling platform for equipment manufacturer to move towards servitization. It helps the equipment manufacturers in their journey towards an outcome-based model.
Analyse your equipment positioning and move with market momentum. Explore your business beyond equipments.