Four-step evolutionary process helps manufacturers unlock new revenue opportunities and enhance the customer experience
Atlanta, 30 Jan. 2020 – SyncronTM today announced the launch of its new servitization maturity model, a four-step process that will serve as the roadmap for manufacturers to navigate the necessary steps and changes required for the journey to delivering Product-as-a-Service (PaaS), where customers purchase a desired result or output of a product rather than the product itself.
The manufacturing industry is at a very interesting – and critical – moment in time. Original equipment manufacturers (OEMs) are seeking new and predictable revenue opportunities while the world is demanding improved sustainability. And, technologies like IoT, machine learning, artificial intelligence and predictive analytics are making “as a service” business models possible. However, a minority of manufacturers are in the early adoption phase of PaaS, while most are still trying to figure out how to leverage this new model to their advantage, as it promises to deliver value to customers, OEMs and the environment.
This collision of forces is driving the popularity of subscription-based business models, as a growing number of OEMs are now experimenting with flexible consumption offerings, but most are in the early stage of their business model transformations.
“As manufacturers aim to future-proof their businesses as the world moves toward ‘as-a-Service’ business models, they must evolve and optimize the performance of their current after-sales service operations to preserve revenue and margins as a prerequisite to this inevitable shift,” said Erik Lindholm, VP of Product Strategy at Syncron. “The repair and maintenance of manufacturers’ longtail of disconnected – or not IoT enabled – products will continue to be delivered via OEMs’ traditional service operations for the foreseeable future. And, an optimized break-fix service operation lays a strong foundation for more mature service models down the road.”
The servitization maturity model is available in an exclusive white paper that explores the shift to delivering products as services. Additional takeaways include:
- Identifying and detailing the four main stages of the maturity model
- Optimizing current service operations while simultaneously preparing for the inevitable shift to delivering products as services
- Highlighting real-world success stories of leading OEMs’ “as-a-Service” businesses
Lindholm continued, “Operating two service models in parallel will most certainly be a balancing act, but it is possible. Along the way to the full realization of delivering products as services, manufacturers will fall into several stages of maturity. Manufacturers must cultivate strong ecosystems of technology and consultative partners to accompany them on this journey as they invest in the new resources, technology and infrastructure needed to succeed.”
To learn more about how the Syncron Service Cloud enables manufacturers’ shift to delivering products as services, visit syncron.com.
Syncron empowers the world’s leading manufacturers to maximize product uptime and deliver exceptional after-sales service experiences, while driving significant revenue and profit improvements. From industry-leading investments in research and development, to providing the fastest time-to-value, Syncron’s award-winning, cloud-based service parts inventory, price and uptime management solutions are designed to continually exceed customer expectations. Top brands from around the world trust Syncron to transform their after-sales service operations into competitive differentiators. For more information, visit syncron.com.