The traditional product sales model has brought success to companies for decades. But businesses are now facing a cultural shift in operations and functions. A new model is emerging – one that provides a viable and profitable alternative that addresses the shortcomings of the traditional approach.
Equipment-as-a-Service (EaaS) involves renting out equipment through bundled products and associated services to end customers. It is part of a servitization business model that eliminates the need for a high upfront capex investment, offering instead welcome flexibility to clients through subscription-based pricing. EaaS is a subscription order-management strategy that helps original equipment manufacturers (OEMs) and their partners redefine revenue generation and capitalize on the significant shift occurring in sales, finance, customer management, and more.
A key challenge with the traditional one-time sales model is a lack of visibility into asset performance. EaaS ensures regular servicing and maintenance, enabling the OEM to receive feedback from its customers and also provide insight for continuous improvement around new technologies and connected products. This mitigates the competitive advantage of many third-party service providers, while building loyalty and creating recurring revenue and future-stream opportunities with the customer.
Capgemini believes that the rise of the subscription-service economy has made the servitization model a valuable tool for generating growth. But it is not just about renting out services and technology to willing customers – but also how they are implemented and managed, and how the client relationship is maintained. With Capgemini’s EaaS platform, we can provide a smooth transition from the traditional sales model for your company, to transform sales while mitigating risks to get the future you want for your enterprise.