This blog post is a preview of our eBook, “The Future of the Aftermarket: Real-Time, Data-Driven, Service-Based.” For a deeper dive into utilizing a connected service experience for your aftermarket, be sure to check out the full eBook here: The Future of the Aftermarket: Real-Time, Data-Driven, Service-Based
Over the past few decades, OEMs and their distributors made billions from manufacturing and selling complex, high-value machines, equipment and industrial assets.
These businesses invested heavily in the tools, technologies and processes to support their manufacturing sales, e.g. cross-business ERP and CRM systems. And it worked!
But shifting market dynamics, changing customer preferences and game-changing technological innovations (“Hello, AI!”) are pushing the source of business growth further down the value chain.
Now, the aftermarket—rather than original equipment sales—is a critical source of new business value.
High-margin parts sales. Predictable service contracts. Recurring revenues. Massive lifetime customer value.
These are revealing themselves to be the new engines of business growth, delivering 2.5x higher margins than original equipment sales.
The business potential of service-based aftermarket models is astronomical.
Airbus, for example, estimates that “aircraft-focused lifecycle services represent the largest segment of growth…[with] a cumulative value of $2.2 trillion over a 20-year period.”
The problem is that aftermarket players are nowhere near maximizing the value they can extract from this part of their business.
Why? Because they haven’t made those same investments in data, tools and technology that they have done in the rest of their business.
If they do, they will unlock game-changing opportunities:
- Real-time, data-driven, service-based business models
- Deep customer understanding
- Intelligent automation scaled across your entire value chain
- Streamlined, interconnected and optimized business processes
- Incredible synergies between aftermarket functions
The aftermarket players that can unlock these opportunities will dominate the next twenty years.
In this eBook, we will explore this shift and demonstrate how you can start to move towards real-time, data-driven service-based business models.
Specifically, by learning to put data, AI & ML at the heart of everything you do in your aftermarket operation.
We introduce Syncron Connected Service Experience (CSX), the only purpose-built, AI-assisted aftermarket solution that is designed to optimize every aspect of your aftermarket business.
Download the full eBook to learn more and see how companies like AGCO and Electrolux use a connected service experience to improve productivity, increase parts availability, reduce inventory and provide a better service experience for their customers!
Topics covered in the eBook include:
- Threats and opportunities in the aftermarket
- The need to evolve to data-driven services
- Why you can’t unlock the value of your data
- How to unlock your data