There is huge change taking place in society. People are gradually becoming more interested in experiences than assets.
Youngsters no longer look forward to having a car or even learning to drive. “I can take an Uber”, they say.
In some areas, like real estate, the renting lifestyle is growing. Do I really have to own my house? What if I need to move next month? Renting might give me more flexibility, right?!
This trend has hit the corporate world as well. Companies gradually avoid immobilizing their financial means. Why should I own an asset that is not strategic to my business?
Need examples? Some companies would rather rent PCs than acquire them; others would rather lease their fleet than own it. Hospitals ask: can I rent the X-Ray Machine with a full-service package instead of acquiring one?
Transformation industries need to learn to turn their products into services. That is a challenge, for sure. Instead of a one deal sale, now they need to support their own product 24×7 and be in constant contact with customers. They need to develop new capabilities for that.
However, there is a bright side to it as well: companies can build more steady revenue flows and improve customer retention more easily in this new service-oriented mode.
How can companies transform goods into services?
Two technologies do help make that transition: IoT and Process Mining.
It is fortunate that the newly leased automobile can now be filled with inexpensive sensors and be hyperconnected to the cloud at a small cost, so that real-time events can flow to a service operations center. That flow of events feeds Process Mining platforms that help one map the lifecycle of the vehicle as well as the customer journey performed by their users. Suddenly you throw light into the whole operations from a process perspective.
Actually, companies are using these technologies to better understand the context and needs of their customers, and get insights into their businesses, which, by the way, usually turns into a new consulting offering, with a brand-new revenue stream.
Things are changing. We can’t avoid it. But we can surely embrace change and make some decent money out of it. IoT and a Process Mining platform such as EverFlow can certainly help there.