Blog post

How PaaS works for the Battery Production

February 8th, 2022

Operations, Repairs and Service Providers

Innovations in machinery and plant manufacturing stopped being restricted to products alone many years ago. Such innovations now cover entire corporate value chains – from customer-centric development right through to data-driven services in after-sales. New financing models and the adoption of results-based payment models from other industries (such as “Every- thing-as-a-Service” or “X-as-a-Service”) are accelerat- ing the rate of change, enabling everything from pure product innovations to business model innovations.

However, many of these models fail when it comes to adapting them to real-life circumstances – or that is the general assumption anyway. This white paper takes a closer look at the “Asset-as-a-service” business model and focuses on the use of production equipment in the shop floor environment. This scenario involves some very specific challenges with a high degree of complexity on both sides.

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We tailor our solutions according to your business needs and production requirements.

Phillipp Hypko, Managing Director

Asset-as-a-Service Models as an Opportunity for Machinery Manufacturers

There are several good reasons for machinery manu- facturers to make the switch from vendor to service provider. Yet the barriers and challenges can be almost insurmountable, especially in the industrial sector, since the switch must take place not only within the company itself, but also on the buyer’s side or within the consumer’s service business.

In markets like the automotive industry where “as-a-Service” and sharing models are already widely used, it is easy to identify the added value that could be transferred directly to suppliers of production equip- ment (referred to as the “asset” below). These models also facilitate new customer engagement campaigns: The machinery manufacturer or service provider is in direct contact with the customer for the asset’s entire lifecycle.

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Two Companies, One Shared Goal

In addition to the general characteristics of the Asset- as-a-Service model, there are sector-specific features that must be considered as part of any evaluation and potential transformation. We outline the basic concept of the Asset-as-a-Service model below. The concept is explained in more detail in the side note at the end of this white paper, using FlexFactory as the example. We then address the opportunities, risks and new require- ments on both sides of the business relationship.

Established Relationships – New Tasks

A quasi-collaborative partnership, near real-time data exchanges and the interdependence between a machinery manufacturer’s and user’s interests create new opportunities for interaction between different business units, as well as new requirements for com- pliance, security and other technical enablers that are essential for successful production operations. The diagram in Figure 1 illustrates this interdependence.

The purchasing department of a producer is faced with the challenge of purchasing new services that were previously offered via a sales model but are now billed according to a usage-based or even results- based model. This makes it necessary to re-evaluate the various offers and providers available.

Please get in touch for more information

Dr. Phillipp HypkoManaging Director