Products businesses are inspired by the software companies that have moved to pure-play as-a-service models and are outperforming their more traditional counterparts across key financial indicators by considerable margins.
But crucially, if products companies want to emulate that success they’ll need to make substantial changes to their aftermarket models. Spare parts and fees for one-off repairs and equipment servicing have made a hefty contribution to product businesses’ profits to date. Service-based models require a new approach to the aftermarket. And that also means developing new capabilities in three key areas:
PLANNING FOR A MORE PREDICTABLE SCHEDULE OF PARTS AND SERVICING
MORE ACCURATE AND TIMELY INVOICING AND COLLECTION PROCESSES
ENHANCED SHORT AND LONG-TERM CONTRACT MANAGEMENT