You can complete the questionnaire on this page to receive a customised recommendation as to which type of business model might be the most suitable for your business.
But before you do this, please watch this video to familiarise yourself with the key terms, and to receive a short walk-through the questions.
See below for definitions for the four digital servitization business models that manufacturing SMEs can adopt.
An ‘Add-on’ business model involves the use of digital technologies to enable additional functions or add customised services to an existing physical product or service. Here, technology embedded in the product, such as sensors, actuators, software and connectivity components, enables the provision of digital features such as software applications or services; for example, continuous or on-demand access to information, feedback or reports. These features help the customer make their use of the product, or their processes, more efficient.
A ‘Usage-based’ business model involves the use of digital technologies to enable customers to use a product, while the ownership of the product remains with the SME. Customers pay, based either on a negotiated plan, or on the actual usage of the product. Technology embedded in the product measures and monitors its usage to enable pay-per-use, or to make a service or product available for a restricted, contractually agreed, time span. The product can either be cycled among customers or remain exclusive to a single customer for the duration of a contract.
A ‘Solution-oriented’ business model involves the use of digital technologies to provide a contractually agreed outcome to a specific customer, such as a certain level of continuous utilisation and uninterrupted usage, or performance of the product. Here digital technology allows the SME to access real-time information on the product’s status or pattern of its operation, in order to offer more effective maintenance, repair and operational support services to ensure the agreed outcome, and in extension, to optimise a core process of the customer.
The 'platform' business model involves the provision and management of a digital platform that enables customers to access to the SME’s product or service, or facilitates the exchange of products, services and information between providers and customers. It aims to create value for all parties, by, for example, optimising asset utilisation or making processes more efficient.