Precisely in times of crisis, production companies look for ways to secure their liquidity. One option is to transfer from Capex to Opex, with companies no longer themselves financing and purchasing machines and plants, but hiring them or paying for them according to output quantities by means of flexible business models. This approach increases the flexibility of the production capacities, facilitates the entry into new products and production processes, and preserves the ability to act at a low level even in difficult markets.
Such an Asset-as-a-Service model promises positive effects also for the manufacturer, i.e. the machine and plant constructors: Long-term contracts, greater customer loyalty and new upselling opportunities.
Simply changing the payment model is not enough. The new business models must provide a win-win situation for both sides, demand and supply. Fluctuating demands on production capacities is at the same time a challenge and an opportunity. Here, in order to guarantee a balance of the risks in the purchase and in the price structure, insurances play a key role. Furthermore, both sides must adjust processes, in particular in sales and purchasing. Questions arise for service, maintenance and plant operation. And on the technical level, remote access to machines must be possible, aspects relating to data protection law and IT security must also be safeguarded.
In brief: Both the supply and demand side need a transformation in order to successfully use Asset-as-a-Service. But what are all the steps involved in implementation?
In our MHPDeepDive "Asset-as-a-Service: How you can benefit as a manufacturer and user", we will highlight the challenges and opportunities of the provision and purchase of an Asset-as-a-Service model. We will present "the two sides of the coin" – what a manufacturer/service provider must plan and implement in advance, and the conditions that producers should establish. You will find out in detail how the processes interlock on both sides, thus producing valuable benefits. For manufacturers, these are, for example, annually recurring turnovers, product quality improvements, additional service business, and new machine and usage data from the field. In turn, the producers benefit from the transfer from Capex to Opex, the scalable production capacities and greater sustainability.
What awaits you in our MHPDeepDive:
- We will highlight the benefits and challenges of typical Asset-as-a-Service models in production – for manufacturers and producers.
- We will describe for both sides a necessary transformation in order to establish a new business model.
- You will find out about practical steps for successful implementation.
Speakers:
- Tobias Hartenstein
Senior Manager, OPEX, MHP - Steffen Cords
Associated Partner, EPI, MHP
