Product as a Service (PaaS) Business Models - Signals From the OP
Ed Marsh, Consultant & Founder of Consilium
Published at : 16 Nov 2021
Most capital equipment manufacturers view their market as pretty stable. In many ways they're correct. They make machines which are in turn used to make products which have bright futures in many cases.
But their business model may not be so long lived. As corporate buyers become accustomed to sharing and platform models in their consumer lives, they'll gradually come to value that in their business lives.
They may not demand it, and technical hurdles will intially challenge it. BUT, some innovative manufacturers, probably upstarts, will figure out ways to transform a traditional capital sales model into a service.
Product as a Service (PaaS) will follow just as surely as SaaS eventually seized control of vast swaths of the software market.
Companies should begin to ideate how their revenue model will change, and begin to experiment.
Signals from the OPPaaSProduct as a Service