It is no longer sufficient to supply a quality product, as customers now need partners that can help them to operate more effectively and efficiently too. Customers are looking for more value added long-term contracts, which not only include parts and service but also guarantee an outcome – i.e. 95% elevator availability, 200 MRI scans per day, lowest total cost of ownership (TCO) per pageprint output, etc.
In an industry with real concerns about the cost model, the challenge will be to find operational efficiencies that increase revenue while remaining competitive. The big move throughout the industry is towards a servitization business model that engages the customer in end-to-end delivery and upsells the customer at the point of service.