Are we where we want to be yet? The Future of Service and Predictive Maintenance

Ever since I started working in service, predictive maintenance has been THE topic in after-sales. It feels like half of all articles at congresses and in trade magazines revolve around this buzzword. As an enabler technology, predictive maintenance enables 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 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 field of predictive maintenance. I hope colleagues will forgive me, but they also have it comparatively easy. With wind turbines, by and large, you just have to monitor large, rotating bodies and predict when problems are brewing.

This undertaking is comparatively easy to implement with modern vibration analyses. Machine tool builders, on the other hand, whose machines have ten or more axes and which install mechanical, pneumatic, hydraulic and optical units, have a much more difficult time. They have to expend considerably more effort to adequately monitor the various components.

Why do many fail to make the step from PowerPoint slide to implementation?

For me, there are two main factors responsible for this. First, I have the feeling that many companies are hesitant because they don't know exactly, where and how to start. In my view, it would be possible to take a first step in the direction of predictive maintenance relatively quickly with the resources available on the market today. The wheel does not necessarily have to be reinvented in this area. I explain how you can get started here in my contribution to the Implementation of Predictive Maintenance.

But even when you get a handle on 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 is not useful

I am critical of the pure technology push that is often pursued in Germany. In my experience, it doesn't work very well to install a few additional sensors in the system, analyze the data, and then throw marketing and sales together to build something marketable. In the primary business, this 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 is going in the right direction. As Service Manager you usually have to put the cart before the horse.

Service from the customer's perspective

As a rule, customers cannot compare product-related services on the basis of standardized parameters. Selling according to the principle of "higher, further, faster" as in primary business is therefore not expedient. Always define your service from the customer's perspective. If he only needs a faster machine, you should continue to invest in your primary business and follow the usual paths.

However, if you notice that the customer's needs are changing permanently, you should develop the solutions that are right for him. This scares many companies that have spent decades - or sometimes even a century - honing their machine portfolio. What if the customer doesn't want to buy machines in the future?

He may soon only want to pay for the output service provided so that he no longer has to tie up his capital in a machine park. This is still tough stuff for many OEMs. However, it won't do much good to hide from this trend.

In order to design the service of the future, it also makes sense to look at the concept of the Service Excellence familiar with.

Markets change

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 is also becoming deserted since everyone has the Spotify app. In some industries, it takes a little longer for the old-world representatives 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 will therefore be to position yourself as a solution provider in this area. I therefore always suggest leaving the "one should do it" mode and Address the issue proactively. If you're one of the first to jump on the bandwagon, you won't share the fate of video store operators.

Also consider the following: The better the tools become on the market, the easier it will be for IT companies to enter the business from the other side. There are already a lot of new opponents waiting in the After-Sales on the domestic companies. In the future, these companies will not need the technical background of the OEM, as they have powerful algorithms to evaluate the existing data in a targeted manner.

Shaping the service of the future step by step

I don't want to paint too black. The turnaround will not happen overnight. It will take a few years. No one 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. However, start thinking along these lines. Otherwise, more agile companies will take over for you. It's not a black-and-white decision, either. There are a lot of intermediate steps on the way to the X-as-a-Service (XaaS) business model.

You can start by polishing up your service portfolio a bit with data-driven add-on 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 use this data to help your customers optimize their production. Then you can take the final step of selling production performance as a service. Cut the tasks into manageable parts and get started step by step.

The good news: Many technological problems on the way to the digital future of classic mechanical and plant engineering and other related industries have been solved in recent years. Predictive maintenance, perhaps the decisive step into this future, can be quickly addressed as an enabler technology today from the technical side.

My final request today is: Don't forget the underlying business model. You need to know where you are headed or you will get lost along the way and my article will still be as relevant 12 years from now as it is today.