Servitization a new revenue stream through Remote Asset Monitoring?
Remote Monitoring and Management (RMM) enables remote maintenance and remote monitoring of IT systems using software installed on the customer’s computers or servers. RMM services can be applied in a wide range of IT areas. Corresponding services are offered by the manufacturers of hardware and software, but also by specialized service providers. This is a simple definition of what RMM actually is and the benefit it brings but what if we suit the physical assets of our customers with smart devices & sensors. If you enable the Internet of Things for your customer assets you can connect the physical world with the data world in near real-time. Allowing us to not only maintain computers or servers no we can now talk with physical assets as well. Combined with certain industry flows, business intelligence dashboards, and artificial intelligence we can create smart solutions that assist you. RMM offers both IT solution providers and their customers effective opportunities for service and process optimization. Through RMM not only IT manufacturers and specialist dealers can expand their service spectrum a typical service company can as well and have the opportunity to establish an explicitly remote service-oriented business model in their company. Which can result in an additional revenue stream through subscription-based billing known as servitization. Especially for manufacturing companies that thrive to offer products as a service and managed services in a more proactive approach like we discovered in a benchmark study with Noventum, this is an interesting model.
In its simplest terms, servitization refers to industries using their products to sell “outcome as a service” rather than a one-off sale. Netflix and Spotify are probably the most well-known example of this, delivering media as a service, rather than customers buying the CDs, DVDs et cetera that produce those outcomes.
Although very different from media streaming businesses which are more B2C focused, the manufacturing & the service industry especially the B2B ones can also benefit from servitization. Manufacturing businesses can offer additional services to supplement their traditional products such as maintenance, keeping a fleet of vehicles on the road as a service. Servitization is usually a subscription model and can be applied to most industries in one way or another. For example Pay per use, pay per month is common scenarios of modern business models.
And there are multiple reasons why classical service companies should reconsider their old fashioned business model. I am not speaking of replacing the classical service visit of a technician for sure we can not fix a broken down asset but the Internet of Things can enable you to solve technological defects, required software updates, simple service information & there are multiple other incidents that do not require a technician on-site anymore. Besides that there are many other benefits remote monitoring as a business model can offer you:
- A new revenue stream (sell remote servicing contracts, monthly service abos, remote monitoring of complete asset fleets can be an offered service)
- More Information about the physical state of a customer asset
- Predictive Service Management
- A new Selling point for your company
- Reduced travel cost
- A pandemic proof solution in place
- 24/7 service without being dependent on human resources
- 24/7 service without being dependent on human resources on site
This is just an outtake of what the internet of things and remote asset monitoring can do to improve your service operations and the best part of it. Customers are willing to pay more than ever for those kinds of services we are living through a digital transformation. Service on-demand becomes a real-life scenario if you have the right back-office solution that helps you operate on the gathered data. You can offer your customer a never before seen value with real-time insights, predicting breakdowns before they happen, and a customer interface that leaves them impressed.
If you want to become the digital leader of tomorrow in your industry, contact us!