New digital tools and solutions offer new opportunities for a service organisation to work smarter and develop their business model. Future business models require you to be more proactive than reactive, thus creating more long-term relationships with your customers. In this article, we want to show you how to realize a digitalisation and become more data-driven in your service organisation.
If you imagine your aftermarket as a staircase, you will find the product you are selling as a first step. On the next step you supply the customer with spare parts if something breaks. Step number three is the classic annual service contract that many manufacturing companies offer for products they sell. Most companies are on this step today and mainly focusing on refining their service offering, among other things, to increase customer loyalty.
Picture source: Microsoft
But the service stairs don't have to end here. There are good opportunities to continue to develop service offerings and not least the aftermarket business with smarter analysis and more digital tools. It is on the additional steps of the staircase that the differences between today's business model and service offering become clear - is the organisation digitised or not?
The connected business model of the future
A smart and connected product is a valuable asset as it can send and receive data and instructions in real-time, even remotely. This allows you to continuously monitor what is happening and act accordingly. Depending on what the product communicates, you can guarantee the customer that you are sending a qualified service technician before the problem has occurred and thus prevent downtime. This is a big improvement compared to today's service contracts, where most organisations only act when the customer reports an issue themselves.
At the top two steps, your business model with connected products is so mature that you can provide your product as a service, rather than just as a physical product, and guarantee a certain uptime. It also means that you no longer sell specific products but a capability, for example 7000 production hours with your product, and customers pay for using your product instead of owning it.
The first step towards digitisation
To begin the digitalisation process, you need to build knowledge within your organisation. What resources do you have? What can you do about how your products function? What will an increased degree of digitalisation have for the impact on work processes and roles within the service organisation and other parts of the company?
Also, you need to consider and undertake an initial analysis of how you would provide your services and how to create a business case that motivates you to work with connected products. You should also try and imagine what your offer and business model should look like in three to five years.
With increased digitalisation and not least with IoT, your business becomes data-driven, which also means that you will manage more data.
If you work in silos with different systems it can be difficult to get this overview and conduct effective analyses. Collaboration goes hand in hand with success. In order to get an overall picture of the entire information flow, it is necessary to integrate several sources of information, both from cloud services and other systems into a common platform.
At Stratiteq we help businesses connect people with the latest technology. We call this approach Connected Services. With a mix of services, you can get a better overview of customers and potential customers as well as a more efficient way of doing data analysis and convert into concrete action proposals. Contact us for assistance in taking the next step in the digitalisation and developing your service organisation.
You are welcome to download our webinar (in Swedish) for a deeper insight or to contact us for more information.