Subscription Management for Machinery and Plant Engineering

Subscription Management for Machinery and Plant Engineering

Subscription Management for Machinery and Plant Engineering

Software subscription is becoming the norm, with more and more companies in the machinery and plant engineering sector also opting for subscription business models. Heidelberger Druckmaschinen and TRUMPF already work with the subscription model, as do various suppliers and component manufacturers.

Depending on the maturity level, scalable contract packages are used offering different scopes of services and tailored to the customer’s needs.


Challenges of machinery and plant suppliers in this subscription use case

These use cases do not work quite as straightforwardly for machinery and plant suppliers as they do for Netflix and co. The use of complex machinery and plant solutions needs to be considered as well as the networking, provision and maintenance of these solutions. Subscription offers are often provided as a product package consisting of machinery, software and services. All of these elements are incorporated into subscription pricing.

With the switch to a recurring revenue model, fundamental company processes change – everything from the sales process to accrual accounting. Existing Customer Relationship Management and Enterprise Resource Planning systems quickly reach their limits. A stable, scalable subscription management model is crucial to reducing manual process steps which are time-consuming and prone to errors.

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Illustrated overview of the advantages of the Subscription Contract Model

Exploiting the full potential of the machinery

Thanks to the combination of machinery and service in a subscription, customers are optimally advised in terms of efficiency and profit. Suppliers and customers benefit from a business model that only generates revenue if the machinery is run efficiently over a long period of time. Opportunities and risks are shared in this way.

Subscription contracts reduce complexity and administrative effort

Subscription customers can hand over many provision and maintenance processes to the machinery or plant manufacturers. This allows them a better focus on their own customers.

Greater customer satisfaction and loyalty through price flexibility

Subscriptions allow companies greater flexibility in terms of pricing: Pricing experiments and their impact can be observed and evaluated in real time. Usage data helps companies to predict when a customer is likely to want to change their subscription. This leads to high levels of customer satisfaction and retention.

At doubleSlash we support the switch from product to service provider with the following service packages:


  • Quick check of the system and process landscape to get clarity on the current status of the contract models for machinery subscriptions, and to define the next value-adding measures.
  • Exploration of the target vision in order to optimally coordinate in-house development and prepare the purchased product for machinery and plant suppliers.
  • Product and supplier evaluation to find the right partner for the functional, technical and methodological aspects of the project and to start planning the integration.
  • Agile development and operation to implement and deliver the subscription features with the highest business value.

What are your subscription use cases?

We would be happy to support you with our know-how.