The Online Monitoring Business Model: Turning installed base into profits

Machine Builders and OEMs have a long history of supporting their equipment in the field. Service of this type is viewed as a competitive differentiator, a source of customer satisfaction, and often a profit generator. Successful organisations in the industry have a staff of engineers, technicians, mechanics, or others charged with assisting customers in their maintenance and continued operation of the machinery long after the sale.

For most organisations, this bundle of services could be broken into five categories:

1. Machine start-up and commissioning.

2. Warranty support.

3. Spare parts and consumables after the initial purchase.

4. On-site service after the warranty period.

5. Preventative maintenance via periodic onsite check-ups.

Employing this category breakdown, let us explore the issues and advantages of each of the five, then explore an exciting new option.