"Different players are needed to make the asset-as-a-service model a reality. What is special, however, is that every player benefits from the resulting symbiosis and becomes a winner."
Mathias Kaldenhoff
Win-win-win is the promise of many, but Asset as a Service creates the real opportunity by bringing together the interests of different stakeholders:
- The interest of customers who need a machine or industrial plant to increase or modernize their capacity or to meet their customers' expectations.
- The interest of manufacturers who want to sell machinery and industrial equipment and, of course, their products and services.
- The same applies to investors, who have an interest in financing products as securely as possible and at an optimal interest rate.
With regard to the first actor, it quickly becomes clear where his/her interest lies
Customers need a new machine. The possibility of acquiring it with low risk, having no or only low investment costs (Capex2Opex, Capex ratio, tax, ...) and not having to worry about servicing the machine is a real win for him.
Instead, manufacturers can clearly differentiate their product from the competition.
It lowers the barrier to buying its product and builds up a long-term relationship with its customer through service and, if necessary, operation. If the machine now also has a certain amount of intelligence and data (smart data) on its use and application, the manufacturer is even able to sustainably improve its product and the application scenarios. A second "win" that should be more than obvious.
Added to this is the shift in its cash flow. This is because the machine is not only paid for once, but is financed over its service life and the number of goods produced on it. This is exactly where third parties come into play. Investors or the bank have a great interest in this model in particular. This is because an asset-as-a-service model for machinery or industrial equipment generates long-term, secure income, which represents a very good return on the capital invested. Alongside financing and leasing, it therefore represents a new, interesting business model, which is particularly exciting for the capital market in these times of low interest rates and thus leads to the third and final win.
Win the customers
- Risk minimization
- Lower hurdles for renewing and optimizing machines and systems
- Reduction in investment costs (CapexToOpex)
- Focus on own product and not on service and operation of the system
Win the manufacturer:inside
- Customer retention, loyalty and improved product development
- Service, maintenance and support
- Differentiation from the competition
- Lower hurdles for the purchase of his machine
Win of the capital market
- New data-driven business model
- Better return on capital employed
- Long-term customer loyalty
"And when technologies and intelligent services come into play that connect the players with each other and increase the benefits of the machine - only then will it be really good."
Michael Thron
After all, Asset as a Service is about more than just a new payment and financing model for machines and systems. The focus is clearly on data-driven business models and service orientation for manufacturers, which offer them the opportunity to take the step towards Industry 4.0 and the energy transition. We - objective partner, SAP and the Fraunhofer Institute - are working on creating a framework that enables the various players to implement such a model quickly, digitally, smartly and intelligently.
