In a subscription model (often also called Equipment As-a-service model – ‘Eaas’), customers subscribe to a machine instead of purchasing it. At the same time, supplementary services and/or consumables are integral components of these models. The billing modality can be designed flexibly, for example as pay-per-use or pay-per-performance.
New business models are gaining practical relevance for companies in the mechanical engineering industry to remain competitive on international markets. However, despite their increasing importance for a companies’ competitive advantages, only few success stories can be identified this far. What are the reasons for that? We have identified several challenges that mechanical engineering companies typically face when developing and launching new business models and offer our proven solutions that help our customers to overcome these challenges for all the new business models currently discussed in practice.
Overview of the relevant business models
New business models in the mechanical engineering industry can be classified into four categories:
These four categories are not mutually exclusive. In the market, combinations can be found more frequently than clear cut offerings. Examples include (a) subscription models with digital services as a key component, (b) digital services offered via a platform in an ecosystem or (c) ecosystems offering physical services in an as-a-service manner.
Challenges for the mechanical engineering industry
Companies from the mechanical engineering industry commonly encounter similar challenges in the effective development, implementation and scaling of their new business models. We support their project success:
- Create value proposition
- Focus on customer needs
- Adapt innovation process
- Transform internal organization
- Set-up pricing
We support your transformation
Based on comprehensive project experience, our consultants can successfully support all phases of the development, market launch and management of new business models:
Selection of our services
- Alignment of the organizational structure and processes with subscription models (Link)
- Management of digital business models (Link)
- Design and implementation of transformation programs (Link)
- Development and implementation of ecosystems (Link)
You are interested in our range of services relating to the development, market launch, and management of new business models? Or would you simply like to exchange ideas about the opportunities and challenges of these market developments?
Please get in touch!