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 Faced by Machinery and Plant Suppliers in Subscription Use Cases

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.
 

Maximizing Machinery Potential: By combining machinery and services in a subscription model, customers receive optimal guidance for efficiency and profitability. Both suppliers and customers benefit from a business model that generates revenue only when the machinery operates efficiently over an extended period. This approach also ensures a balanced sharing of opportunities and risks.

Subscription contracts simplify operations and reduce administrative effort. Customers can delegate many provisioning and maintenance tasks to machinery or plant manufacturers, allowing them to better focus on their own customers.

Subscriptions offer increased price flexibility, enabling companies to test and evaluate pricing strategies in real time. Usage data allows for predicting when a customer might want to adjust their subscription, resulting in higher customer satisfaction and stronger retention.

Whitepaper

Requirements and Provider Assessment for Subscription Models

CPQ (Configure, Price, Quote) systems enable companies to make the quotation process in subscription management more efficient. Which system is best suited to your challenges? We compare for you.

To The Whitepaper

At doubleSlash, we support the transition 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.