New technologies are not only changing the way we live, but also influencing business models of companies in all industries. The trend is moving from traditional product-based business models, i.e. the sale of physical products, to service-based business models, such as pay-per-use or pay-per-output, in which the customer pays not for the product itself but for its use or service. These are examples of so-called connected services, i.e. digital services enabled by the networking of physical products and data.
In this Point of View, we explain how advanced manufacturing companies are in terms of their Connected Services. This shows that companies differ in what they offer and how they offer it. In addition, companies are developing at different speeds and with different focuses.
In the agricultural machinery industry, companies are differentiated by what they offer. Innovative connected services are offered to monitor fleets as well as increase yields through precision farming. In the medical industry, for example, companies stand out by the way they offer connected services. Services such as remote monitoring or maintenance are already used by a very high proportion of customers.
Based on our research and interviews with industry experts, the study offers insights into the use of Connected Services in the manufacturing industry. Through the study, you will learn what you can learn from other industries and how to avoid common mistakes to ensure a successful as well as sustainable transformation.