Change the way you buy with servitisation as a new business model - ADVANCED

Cost
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Cost
MEDIUM
Cost
HIGH
EFFORT
low
EFFORT
medium
EFFORT
HIGH
IMPACT
low
IMPACT
MEDIUM
IMPACT
HIGH

Customers do not simply purchase a product; they seek a performance-based, tailored solution.

Servitisation, also known as Product-as-a-Service, where products transition into services, is enabled by digitalisation capabilities such as sensor data collection and artificial intelligence to optimise asset conditions and consumption.

For example, the supplier commits to delivering energy-efficient performance to reduce the customer's carbon footprint. Instead of buying individual cooling or heating systems, the buyer can opt for an energy efficiency service, where the supplier designs, builds, operates, and maintains the facilities on behalf of the customer.

In a traditional model, suppliers aim to sell more equipment and consumables, often neglecting product lifespan. Conversely, customers aim to minimise goods replacement, leading to conflicting interests.

In a functional model, the supplier retains ownership of goods, incentivising quality optimisation and prolonged use. This is the end of planned obsolescence. With fewer manufactured products having longer lifespans, there's a reduced carbon footprint.

Central to this transformation is servitisation: the  shift from traditional business models to outcome-based, Product-as-a-Service (PaaS) models. Companies are now compelled to rethink and revamp their service models to remain relevant in this evolving landscape.

79.4 zettabytes

of data are expected to be generated from approx. 41.6B Internet of Things (IoT) devices by 2025.
(IDC Forecast)

76%

of consumers want more customization.
(Accenture survey - 2021)

ADDITIONAL RESOURCES

- According to the world Economic Forum, servitisation represents an effective way to accelerate the investments in energy-efficiency needed to deliver the Paris Agreement goals for achieving a low-carbon economy

- Leading organizations such as GE Healthcare, Siemens and Fresenius are starting to offer equipment via a pay-per-use/pay-per-outcome model. They are joining hospitals and other healthcare providers in offering Value-Based Care (VBC). For example, GE’s TruPay provides the complete care of certain medical equipment, such as REVACT equipment, through a pay-per-use model. It comes with built-in performance commitments including 95 percent equipment uptime, complete care for three years, and 24/7 online remote services. In return, GE determines prices based on outcomes delivered.