Yesterday, I had the pleasure of hosting a virtual panel-style debate with my friends Usman Shuja (Chief Commercial Officer at Honeywell Connected Enterprise) and Guneet Bedi (Chief Revenue Officer at relayr) – see the recording here.

Over 350 global executives joined the virtual event from companies like AB InBev, ABB, Airbus, AstraZeneca, Bosch, Coca-Cola, Diageo, Flex, GE, Grainger, Gulfstream, Halliburton, Johnson Controls, Koch Industries, Lendlease, Rockwell, Schlumberger, Schneider, Siemens, Solvay, Suez, TechnipFMC, Tetra Pak, and many more

The discussion kicked off with the big picture question: How are equipment manufacturers monetizing their value-added digital services? 5 years ago, everyone was trying to figure out how to connect machines and analyze data. By and large, the tech stack is available and manufacturers can deliver connected products… but the major obstacle now is how to monetize these digital capabilities.

To understand business model transformation across industrial equipment and services, we debated the following points:

How can as-a-service models allow companies to stay relevant and resilient?

Which industries are ready for as-a-service / utilization-based pricing models?

How can industrials financially engineer successful equipment subscription models?

Usman helped walk us through the equipment digitization journey – this begins with manufacturers connecting their machines, then selling software services (SaaS), and finally transitioning towards fully servitized business models (Equipment-as-a-Service). Then Guneet helped outline some concrete examples of customers relayr has helped transition into Equipment-as-a-Service models (including this project with a leading diamond processing machine manufacturer).

My two favorite questions from the Q&A session are below, and I’d be interested to hear any additional thoughts people may have:

How can OEMs mitigate their risks as they transition into equipment subscription models?
If digital equipment models can A) help customers save money and B) help OEMs make more money… then how can both sides actually win? Where does the extra money come from?

Leveraging our deep network to keep us all connected during these unprecedented times, Landmark will be hosting an ongoing series of digital events featuring renowned thought leaders in industries ranging from cybersecurity and industrial tech to digital marketing and social impact. To learn more about our digital series as either an attendee or partner, please contact me – ibrown@landmarkventures.com.

And in case you missed it, check out there recording!