Predictive maintenance has been THE topic in after-sales ever since I started working in service. It feels like half of all articles at conferences and in trade magazines revolve around this buzzword. As an enabler technology, predictive maintenance opens up completely new sales opportunities and business models. Today, however, I would like to take a critical look at the developments that I have been observing for the past 12 years.
While most players are unfortunately still dealing with very rudimentary issues, there are actually a few lighthouse industries that are quite well positioned. The wind energy and printing industries are benchmark industries in the area of predictive maintenance. I hope my colleagues will forgive me, but they also have it comparatively easy. With wind turbines, you basically just have to monitor large, rotating bodies and predict when problems are about to arise.
This undertaking is comparatively easy to implement with modern vibration analyses. Machine tool manufacturers, on the other hand, whose machines have ten or more axes and install mechanical, pneumatic, hydraulic and optical units, have a much more difficult time. They have to go to considerably greater lengths to adequately monitor the various components.
Why do many people fail to take the step from PowerPoint slide to implementation?
For me, there are two main factors responsible for this. Firstly, I have the feeling that many companies are hesitant because they don't know exactly what to do, where and how to start. In my view, it would be possible - with the resources available on the market today - to take a first step towards predictive maintenance relatively quickly. The wheel does not necessarily have to be reinvented in this area. I explain how you can get started here in my article on Implementation of predictive maintenance.
But even if you have got to grips with the technology, the question remains, how to market such services. Therefore, the second major hurdle I see in the implementation of predictive maintenance is the lack of a business model in many cases. This should actually be the first item on the agenda, but is unfortunately often forgotten.
The pure technology push does not make sense
I am critical of the pure technology push that is often practiced in Germany. In my experience, it works rather poorly to install a few additional sensors in the system, evaluate the data and then throw marketing and sales together to build something marketable from it. In the primary business, things may (still) be different in some cases.
Here, the technology push is often an important driver for securing the innovation lead. At least if it goes in the right direction. As Service Manager However, you usually have to put the cart before the horse from the other side.
Service from the customer's perspective
As a rule, customers cannot compare product-related services using standardized parameters. Selling according to the principle of "higher, further, faster", as in the primary business, is therefore not expedient. Always define your service from the customer's perspective. If they only need a faster machine, you should continue to invest in your primary business and follow the usual path.
However, if you notice that customer needs are changing permanently, you should develop the right solutions for them. This scares many companies that have spent decades - or sometimes even a century - improving their machine portfolio. What if the customer no longer wants to buy machines in the future?
They may soon only want to pay for the output they produce so that they no longer have to tie up their capital in machinery. This is still a tough sell for many OEMs. However, it won't do much good to hide from this trend.
In order to shape the service of the future, it also makes sense to familiarize yourself with the concept of Service Excellence to familiarize yourself with our products.
Changing markets
Ultimately, this is already a reality in many areas. Let's take a look at the private sector: Consumers no longer go to the video store, they watch Netflix and see what they want, when they want. The record store has also been deserted since everyone has the Spotify app. In some industries, it takes a little longer for the old world to die, but I can't remember the last time I saw a happy video store owner.
It is not yet clear when traditional B2B industries will disappear in their current form. However, I am sure that it will happen. Technological differences between providers are becoming increasingly marginal. The only chance to differentiate yourself will therefore be to position yourself as a solution provider in this area. I therefore always suggest leaving the "one should" mode and address the issue proactively. If you are one of the first to jump on the bandwagon, you will not share the fate of the video store operators.
Also consider the following: The better the tools on the market become, the easier it will be for IT companies to enter the business from the other side. There are already plenty of new opponents waiting in the After-Sales on the domestic companies. In future, they will not need the technical background of the OEM, as they will have powerful algorithms at their disposal to evaluate the available data in a targeted manner.
Shaping the service of the future step by step
I don't want to paint too dark a picture. The turnaround won't happen overnight. It will take a few years. Nobody is asking you to turn your entire business model upside down next year and sell milled parts instead of a milling machine or X-ray images instead of a computer tomograph. But start thinking in this direction. Otherwise, more agile companies will take over for you. It is also not a black and white decision. There are a lot of intermediate steps on the way to the X-as-a-Service (XaaS) business model.
You can first polish up your service portfolio with additional data-driven services until you have a better handle on the field of predictive maintenance and then Availability guarantees for your equipment. In a further step, you can use this data to support your customers in optimizing their production. You can then take the final step of selling production performance as a service. Break down the tasks into manageable parts and get started step by step.
The good news: Many technological problems on the path to the digital future of traditional mechanical and plant engineering and other related industries have been solved in recent years. Predictive maintenance, perhaps the decisive step towards this future, can now be tackled quickly from the technical side as an enabler technology.
My final request today is: Don't forget the underlying business model. You need to know where you are heading, otherwise you will get lost along the way and my article will still be as relevant in 12 years' time as it is today.
