Exploring as-a-service as the shifting business model for manufacturers

Exploring as-a-service as the shifting business model for manufacturers

As manufacturers confront more competition and decreasing profit margins, innovative business models provide an opportunity to differentiate and add value in customers’ eyes. Sales leaders, in particular, are keen to explore the potential of as-a-service offerings to boost revenue. This “servitization” entails a transformation in value propositions, sales methodologies, and overall operations.

Subscription-based sales has several advantages, but the perceived risks to revenue and client retention, on top of transformational requirements. Changing business models is complex, and determining a safe place to start is key to unlocking the potential. Early adopters have the opportunity to capitalize on a fresh market and set high barriers to competitors. 

• How can a switch from traditional to subscription-based sales affect bottom lines? 
• From a manufacturer’s perspective, what are the advantages and concerns of as-a-service models? How can barriers to adoption be overcome?
• What systems and resources need to be in place to create trusted relationships, manage complexity, and ensure full transparency?