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Transforming from "Break/Fix" to "Recurring Maintenance Contract" in a More "Traditional" Mfg. Org?
This is very much related to the other question I asked recently...
A vast majority of the revenue we generate from 1/2 of our Services business is tied to an on-asset based service model -- it's "traditional" start-up and commissioning of equipment, maintenance, break-fix/repair work, and equipment modernization. On the other hand, the vast majority of the revenue we generate from the other 1/2 of our Services business is tied to post-warranty maintenance contracts.
We are all well aware of the benefits of driving the "recurring service" model into the former part of our business. We've worked on the customer benefit, value proposition, etc. -- and in an increasingly IoT/Outcome based world, it's definitely a more compelling argument.
But I'm very interested to learn from companies who've made the transition from primarily repair-type services to more recurring maintenance contracts -- especially those in a more "traditional manufacturing" background (where recurring maintenance contracts haven't been the standard)... What have been your most critical insights, learnings, failures, etc.