FROM HARDWARE SUPPLIER TO SERVICE PROVIDER
NEW BUSINESS MODELS
RECURRING REVENUE WITH PAY-PER-USE:
The digital transformation is leading to profound changes both in the markets and in terms of customer expectations. Companies must reposition themselves in this change in order to survive. If you do this early and proactively, you have a good chance of not only maintaining your competitive position, but even expanding it. The shift to new, digital business models offers great potential in this direction.
For example, machine manufacturers can transform themselves so that they no longer only sell equipment and products, but only provide or "rent" their output and the hardware. This shifts the revenue structure towards recurring revenues and stabilises cash flow. At the same time, this leads to closer customer loyalty or a more stable, lasting relationship.
In order to sell the output of plants and products, it is necessary to switch to output- or consumption-based billing. To be successful with this, a very high availability of the products and plants must be guaranteed. The responsibility for this then lies largely with the manufacturer.
For technically mapping a pay-per-use scenario, machines in use at the customer must report consumption data back to your SAP ERP. This can be done via meter information, but also via more complex data flows. For this purpose, the corresponding information can be loaded into a data lake via the All for One IIoT Connector, for example, where it can be further processed in a targeted manner. This information can then be passed on to common SAP standard order and contract processing processes - right up to automated invoicing of your customers.
For such a business model to be successful, it requires not only the appropriate technological set-up. Sustainable success can only be achieved if the internal process landscape and the mindset of the employees adapt to the new market presence. The latter both with regard to customer relations, but also to internal cooperation and communication. This requires not only a serious commitment, but also a change management process that accompanies this development in the long term. Here, too, we are happy to support you with experienced consultants.
AT A GLANCE:
The added value for you as a manufacturer: You transform your business from irregular (re)sales to regularly recurring revenues. At the same time, you expand the relationship with your customers, as you are not only in contact with them in the context of new acquisitions or service cases, but continuously due to your service relationship.
The advantages for your customers: To be able to use your products, your customers do not have to make a high initial investment, but spread the investment over the entire useful life.
What data can be used? Basically, all kinds of sensor, machine and process data can be used that represent consumption or benefits for your customers - such as meter readings, feedback or measured values.
Which protocols are used? We use common industry standards such as MQTT or OPC UA.
How can the scenario be set up? The provision of machine date e. g. via OPC UA is the prerequisite for IoT-based prduct development. This data can then be loaded via the All for One IIoT Connector into a data lake based on Azure Time Series and then into the SAP EPD platform - but also directly into SAP EPD.