"Simply put, it's the use of power without having to own anything yourself"
Mathias Kaldenhoff
This can be quickly understood using a simple example, such as a food processor. Food processors are often very expensive for the end consumer, just like industrial machines in manufacturing. But for customers, they promise considerable time savings and completely new cooking possibilities. Nevertheless, the high price prevents many consumers from purchasing such a machine because they are not yet able to assess the actual benefits for themselves. This hurdle can be overcome with Asset as a Service. Let's assume that all of these customers would only have to pay for the food processor in the future if they actually use it.
Then an entry would suddenly be low because the risk of a bad investment is close to zero.
The manufacturer is now also interested in ensuring that the food processor is used as often as possible. Every day, of course, if possible. This means that manufacturers will develop methods to inspire customers to use them. This will create more and more services and, above all, versatile options for customers. Suddenly we have a win-win situation: customers enjoy a kitchen appliance for a low entry-level price and manufacturers have established close, lasting contact with their customers.
"Asset as a Service - New financing model for industrial plant and machinery that helps companies to renew their machinery with reduced risk and conserve liquidity."
Michael Thron
This model can also be applied to manufacturing. This is because in the industrial goods market, too, payment should be based on the use of an asset rather than a one-off, usually high investment. This means, for example, that I only pay for an excavator or a crane that I only need marginally as a construction company when it is actually used on the construction site.
Or charge for a packaging machine based on the packaging processes - this creates a financial advantage. This is exactly where we talk about Asset as a Service - very low investment amounts for customers, which they pay when they use a machine or device. On the manufacturer side, on the other hand, close contact with customers is established. Furthermore, additional services can significantly increase the benefits of the product for customers, which results in higher usage and thus also in more continuous revenue streams for manufacturers.
