PAY-PER-USE will become a huge business!
In our prior articles we started to talk about the potential for PPU and Equipment-as-a-service (EaaS) in the various industries. Today we would like to put some numbers behind the coming developments and the potential that the markets offer. According to a recent study from IoT Analytics the market for EaaS business models was $21.6B […]
Pay-Per-Use is not a new concept!
In fact, the potential of the new business model was recognized decades ago. So long before the industrial Internet of things (IIOT) was invented. Initially, models were created that showed similar aspects of the known pay-per-use business model. But the idea was ahead of its time, due to the fact that the emergence of the […]
Adoption Drivers of PPU based business models
In the last article we talked about the benefits for equipment manufacturers (OEMs) of EaaS business and financing models. Today we want to give you an overview about the most important drivers which will lead to increased adoption of EaaS and Pay-per-use business models. 1. Ease of measuring KPIs Equipment that immediately improves easy-to-measure customer […]
Why should OEMs offer “Equipment-as-a-Service”?
Last week we tried to give a short introduction why equipment operators should consider paying for usage instead of purchasing equipment. But there are a lot of advantages also for Original Equipment Manufacturers (OEMs) who offer a service based business model. These benefits combine both a new way to generate revenue and a front row […]
Are you already buying the milk, or is it still the whole cow?
Over the past few years several companies in different industries shifted the way of obtaining additional capacities to a much more flexible one. The emergence of the Industrial Internet of Things (IIoT) brought the tools Equipment manufacturers (OEMs) needed to develop and implement disruptive new business models like Equipment-as-a-service (EaaS) based on the data produced […]
Challenges for Equipment Manufacturers (OEMs) during the Covid-19 crisis … and a possible way out
Corona heavily impacts the Equipment Manufacturing Industries on a global scale. While the crisis made it difficult to process already ordered equipment due to interruptions of supply chains and travel limitations it is the demand side which deteriorated in only a couple of weeks. In a survey conducted by the VDMA early May, 85% of […]
Can Equipment-as-a-Service (EaaS) and industrial Pay-per-use (PPU) business models help to restart the economy after the COVID-19 shock?
The business model of selling Equipment-as-a-Service (EaaS) has been around for a while: Rolls-Royce introduced its Power by the Hour program, pricing their Viper aircraft engines based on flight hours, back in 1962. More recently, the rapid rise of sensors and the advent of machines and devices connected to the Internet of Things has made it […]
