Manufacturers/OEMs who follow the product sales concept for a long period of time, adopting a new business model can be challenging in many ways. But the market is inevitably moving towards servitization and the benefits are clearly visible.
Currently Equipment Manufacturers invest high capital on the manufacturing of their equipment. Adding an outcome-based business model to this can be difficult as it delays the recovery of the equipment cost . Equipment Manufacturers will need to identify additional financing to manage the change in revenue model.
Modern day problems require modern day solutions. Monitoring & analysing machine parameters can help in understanding the machine's health, its usage, and flaws in existing design. Digitization allows making machines more reliable and efficient. However, bringing with it new risks such as cyber security risks that are to be addressed.
It can be the most challenging part for manufacturers, as traditionally equipment manufacturers are concerned about equipment sales and service is seen as an overhead. So, arranging field service and feedback in an undisrupted output with minimal delays won't be easy to implement.
