What if tomorrow, your optometrist told you that, with laser surgery, your vision would improve drastically? The first thoughts may be, “But, I see fine now with glasses. In fact, if I were to have the surgery, it would be both an investment of my money and a risk to my already satisfactory vision. Is it really worth it?” But, if you ask anyone who took the leap, they’ll probably tell you: despite the effort up front, the investment was well worth it in the end.
For many manufacturers, the after-sales service side of their business is like satisfactory vision: it’s perfectly profitable as-is, making it hard to justify a major change. In fact, for decades, manufacturers have been successful focusing on repair execution – repairing a product after it has already broken down. So, when it comes to shifting toward servitization, where manufacturers transition from selling products to selling the output or value that products deliver, they’re in a conflict of interest, where they see servitization as a potential detriment to the profit extraction of the after-sales service side business.
But, customers today are demanding maximized product uptime, and satisfactory service is no longer cutting it. That’s why we collaborated with Worldwide Business Research (WBR) to create a new research report, “Maximized Product Uptime: The Emerging Industry Standard,” to determine how prepared manufacturers are to meet these rising customer expectations. The research highlights the gap between customers’ increasing demand for maximized product uptime and manufacturers’ ability to deliver it, plus strategies for manufacturers to start meeting these new expectations today.
Want to know how your organization stacks up to the rest? Find out below with these 8 essential uptime statistics for manufacturers to take into consideration as they shift toward servitization in the year ahead:
1. 66% of OEMs are beginning to feel pressure from the executive suite to shift away from a reactive, break-fix service model and move towards one that is focused on maximized product uptime.
2. Currently, only 33% of OEMs offer service based on maximized product uptime, while 39% said it would be possible within 2 years.
3. More than 70% of OEMs indicated they are gathering data from sensor-equipped products in the field.
4. 51% of OEMs indicated they have the infrastructure in place to support service models based on maximized product uptime, but still have more work to do to support this model; only 25% of OEMs indicated they can fully support service based on maximized product uptime today.
5. 90% of OEMs intend to invest in predictive analytics within the next 12 months.
6. More than half of OEMs intend to make AI and machine learning a major investment within the next 12 months.
7. 82% of OEMs believe prospective customers would consider maximized product uptime in their future purchasing decisions.
8. 58% of OEMs believe customers are willing to pay more for maximized product uptime.
Customers are demanding maximized product uptime and manufacturers understand they need to deliver it, but they don’t yet have the infrastructure in place to support it. In this research report, uncover additional research, plus learn why maximized product uptime matters to manufacturers and how to implement it in your organization today. Download the research report to learn more!