Customer case example  – Connected Power shafts:

A manufacturer of industrial shafts offers its customers to install sensors to measure and control vibrations. This will enable the customer to benefit from condition-based maintenance services. The shaft lifetime will be extended, unplanned outages will be reduced. Bottom-line benefit will be created as the additional value exceeds the costs of connecting the shafts. However, customers are hesitant to move to the new technology as they would have to carry investment, operating and implementation costs. They have limited insights into the benefits of such an investment. Therefore, some pilot customers have been chosen which are contracted with a new pricing model including sensor costs as part of their service agreement flexing this capital cost component. Additionally, shafts and motors have been integrated into the arrangement and are offered on a “flat-fee” basis. The customer pays for output. The manufacturer guarantees availability and services the machines.