XaaS Benchmarking: Everything as a service?

Motivation

In the last decade, software companies have blazed a new trail for “as-a-Service” offerings. Selling software as perpetual license has faded out of fashion. Instead, companies such as Adobe or Amazon are providing Software-as-a-Service (SaaS) or Infrastructure-as-a-Service (IaaS). Success proves them right, as these vendors enjoy higher customer retention and recurring revenue. Conversely, customers benefit from the continuous deployment of new functions.
 
But what about manufacturing companies? Especially in Business-to-Business, margins on product sales have become razor-thin. Thanks to recent advancements in digital technology and data analytics, a new breed of services has appeared. However, manufacturers face difficulties in monetizing these new data-based, smart services. One major reason is that customers often underestimate the value of these smart services, such that customers’ willingness to pay is low.
 
Can “Everything-as-a-Service” (XaaS) be a solution? For manufacturing companies, this equals to providing Industrial Goods as-a-Service. Customers can use these goods or simply benefit from their outcome without having to own them. Hence, customers can flexibly adapt service consumption to their needs. XaaS providers, in turn, remain responsible for maintaining the industrial goods operational. Thus, in addition to the service fees, every Franc or Euro saved by using remote monitoring or predictive maintenance goes directly into the pockets of the manufacturers offering XaaS.
 
However, the path towards XaaS is rocky. It is not only about implementing a new business model, with new pricing approaches and customer relationships that are closer than ever. Instead, companies considering the move towards XaaS need to reflect their current strategy first. Operating traditional and as-a-Service business models in parallel can lead to serious cannibalization. In addition, new operational processes need to be implemented, organizational structure and roles to be reconsidered. Overall, transitioning to XaaS requires a deep organizational transformation.
 
Our new benchmarking Everything-as-a-Service? Learning from Software and Manufacturing Companies” explores this topic systematically. The benchmarking’s objective is to identify “Successful Practice” companies that have successfully introduced XaaS offerings and managed the organizational transformation.
 
As consortium partner, you profit from this benchmarking in two ways. First, you decide on the questions that are addressed in this study. Thus, you have direct influence on the project outcomes. Second, you will join the Site Visits at the Successful Practice companies. This provides you first-hand insights from industry experts.
 
Currently, we are looking for consortium partners to join the benchmarking study. We are looking forward to getting in touch with you for additional information!

 

Your Benefits
Direct influence on the topics examined
Profit from our experience in knowledge transfer
Learn from industry experts
Visit successful practice companies

 

XAAS
Project Overview
Time Frame
•Ca. 8 months
•Planned kick-off: 01/2020
Meetings
•Kick-off meeting (1 day)
•Review meeting (1 day)
•Site visits (1 day per visit)
•Final conference (1 day)
Participation Fee
CHF 20’000
Timeline-1
White Paper

Our White Paper "Everything as a service? - Revealing Challenges for Software & Manufacturing Companies" targets practicioners intrigued by Everything-as-a-Service (XaaS) offerings. We address some of the opportunities and challenges faced by companies turning towards XaaS by describing real cases from the software and manufacturing industry. We define "Industrial Goods-as-a-Service" (IGaaS) and introduce the St.Gallen IGaaS Management Model for managerial guidance.

 

An excerpt of the White Paper is available below. To obtain the full version, please fill out the form at the bottom of this page.

 

XaaS_White_Paper_cover

Downloads

For further information, download the following files below:

  • Project description of our XaaS Benchmarking
  • • Excerpt of our White Paper "Everything as a service? - Revealing Challenges for Software & Manufacturing Companies" (full version is available via the contact form below free of charge)
ITEM-HSG_XaaS_White Paper_Excerpt
application/pdf 414 KB
ITEM-HSG_Proposal_XaaS_Benchmarking
application/pdf 930 KB

Contact Form

Please fill out the form below to obtain:

  • • Further information on the XaaS Benchmarking
  • • A free full version of our White Paper "Everything as a service? - Revealing Challenges for Software & Manufacturing Companies"
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Contact

Profilfoto
Jonathan Rösler
Research Associate & PhD Candidate