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Asset-as-a-Service (AaaS) would radically change many traditional business models. Nevertheless, a significant proportion of industrial companies will start to offer AaaS in the coming years. Although the switch to AaaS is radical in its business logic, it offers numerous possibilities and opportunities for companies and customers.

In essence, companies no longer sell their equipment or products in physical form, but offer their customers the service and performance they need directly. A machine is offered together with additional services and digital products in a purchase model with minimal upfront costs and flexible, recurring instalments based on usage or performance-related usage data. The machine does not become the property of the customer, but continues to belong to the provider.

AaaS also supports the transition to a sustainable economy. The business model promotes a green industry by increasing resource efficiency, extending the service life of equipment and enabling a circular economy.

Our study provides detailed insights into practice

Our Asset-as-a-Service Manifesto sheds light on how AaaS works and how companies can finance the business model. We also provide you with direct insights into practice. Executives from the German mechanical engineering company SMS group explain their strategy and how the company implements Asset-as-a-Service. In the interview, the interviewees explain why they already rely on AaaS, what impact this has on their business models and what their cooperation in this area looks like.

We interviewed more than 100 companies in total. Our study shows that the majority of companies are aware that services and hardware will merge into a single offering in the future. 38 per cent of the companies surveyed for our study say that they already offer AaaS services and 51 per cent plan to include such services in their portfolio.

Many companies find it difficult to define a customised AaaS business model

Awareness of AaaS and its benefits is already widespread among potential providers. AaaS offers significant commercial and, by tapping into new customer segments, also strategic opportunities that can surpass conventional business models.

Nevertheless, potential providers often find the strategic AaaS decision difficult. The difficulty lies in defining a consistent business model. Companies can choose between different AaaS strategies - these differ primarily in their promises to customers, the degree of customisation of the offering and the services offered to customers.

Our study, which was developed in collaboration with the University of St. Gallen, provides an overview of the most important issues surrounding the implementation of an AaaS model and also shows which financing models are suitable for managing risks, cash flow and balance sheet aspects.