Device-as-a-Service: Your next supply chain model
June 22, 2020
RESEARCH REPORT
In brief
In brief
- Device-as-a-Service (DaaS) is an emerging supply chain model that gives customers more flexibility, and helps providers unlock new revenue streams.
- As one integrated experience, DaaS represents a step-change in supply chain management and offers significant benefits over a typical leasing model.
- By taking action on key supply chain levers, providers can create the foundation for a successful and scalable DaaS offering.
One integrated experience, countless benefits
Device-as-a-Service (DaaS) is emerging as a highly desirable option for both customers and providers. Customers gain flexibility, lower costs, and freedom from device management responsibilities, while providers benefit from new services revenue, a more predictable revenue stream, lower warranty costs, and substantially reduced sourcing costs through device re-deployment.
However, building a fully evolved DaaS business can be challenging for providers. DaaS requires embracing a new type of supply chain model that combines device fulfilment, device services, and device recovery into a continuous flow that provides a seamless end-to-end customer experience.
Device-as-a-Service is a platform based ecosystem for Service-Based transformation models. The ‘As-a-Service’ platform manages the device lifecycle with solutions for consumer electronics, medical and industrial equipment, enterprise hardware, etc.
Leading DaaS companies are reaping the benefits of this new model. They have succeeded by rethinking supply chain flows and deploying them in new digital platforms. In the PC market alone:
0%
of PC manufacturers offered DaaS as an option in the PC market in 2015.
65%
of PC manufacturers offered DaaS as a product by 2019.
DaaS in three dimensions
DaaS represents a step-change in supply chain data and flow complexity. Providers must successfully integrate the three dimensions of this model to create one smooth, simple and seamless experience.
Device Fulfillment
How devices are put in the hands of customers is different for DaaS, which is not based on a traditional order-based model.
Device Services
Unlike in add-on service models, DaaS providers have to understand the product, its components and everything that changes with the device over time.
Device Recovery
An afterthought in most models, DaaS providers can improve return on assets by recovering value through device repair, redeployment and more.
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The foundation for a scalable DaaS offering
These four primary levers are essential to a successful DaaS supply chain.
Customer experience
At its heart, DaaS is a customer service model. Designing from the outside-in enables successful “moments that matter” throughout the DaaS lifecycle.
Asset lifecycle management
Since DaaS manages the entire asset lifecycle, getting scope and automation right from the outset is critical to scalability.
A flexible network
Flexibility is needed to adapt as products and services are configured for specific client service needs and to support innovation over time.
Platforming
DaaS requires a digitally integrated platform— connecting to all operators, providing visibility to all assets, and enabling the customer experience.
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Getting started with your new supply chain model
Creating effective DaaS capabilities starts with three initial actions that help ensure your DaaS offering will be valued by customers, will outperform standalone models, and will efficiently scale revenue and profit with demand.
1. Own
Ensure your DaaS offering creates measurable customer and internal value across all three phases of the product lifecycle.
2. Design
Drive accountability and success across multiple integrated providers by clarifying goals and governance over all elements of the model.
3. Platform
Align your roadmap for platforming with measured value outcomes within your model, as determined by a benchmark performed against a DaaS architecture.
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Meeting the demand for DaaS
What the market landscape points to is clear. In an increasingly commoditized technology market, DaaS can lower costs and spur growth—helping providers stay ahead of the curve.
DaaS: Smooth. Simple. Seamless.
Creating value for customers and providers alike, Device-as-a-Service (DaaS) is a new high-revenue, high-yield model for products.
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