business model innovation

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SKF uses cloud to offer new business models

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Topics: predictive maintenance, business model innovation

Organizations: Siemens, SKF Group

The idea is simple: Instead of buying industrial bearings – whether for conveyor belts, pumps, crushers, paper machines, steel or pulp mills and railway bogies – SKF’s customers pay for uninterrupted rotation services. Under SKF’s Rotating Equipment Performance service, customers pay a fixed fee, which covers the provision of bearings, seals, lubrication and condition monitoring.

On the topic of payment: For many manufacturing operations, the argument for XaaS is that payments fall under operational expenditures (OPEX), thus leaving capital expenditure (CAPEX) budgets intact for the big, essential investments. When a contract is drawn up the parties agree on targets, which could be machine production level, uptime or other KPIs. Digitalization is essential for delivery and to ensure the promised uptime.

Aside from detecting failures before they happen, data evaluation is essential for selecting the right rotation services. SKF can measure the rotating equipment performance and from the data recognize whether the solution it has proposed is meeting its customers’ needs. If not, adjustments can be made to provide the best solution possible.

Read more at Siemens Blog