Anything-as-a-Service: Use rather than own

It all started with SaaS (Software-as-a-Service) – the ability to use software without having to buy it. This model was then gradually extended to other services. More and more products and machines are now being replaced by services – a phenomenon described as Anything-as-a-Service (XaaS). This development is driven by digitalisation with technologies such as IoT and cloud computing, which enable a close and interactive relationship between customer and provider to be scaled cost-effectively. At the same time, customer expectations are changing, and there is a need for greater flexibility.

Are you still an owner or already a user?

The paradigm shift towards service orientation offers companies new opportunities. It allows them to reduce investment costs through usage-based billing and always have up-to-date and well-maintained products at their disposal. There are also no maintenance costs and upkeep to keep track of, and the use of a regulated service offering often means a significant reduction in risks for users, which would otherwise have to be mitigated.

On the other hand, new ways of monetisation are opening up for providers through subscription-driven revenues and data-backed additional services. “Companies not only increase long-term customer loyalty with recurring revenues, but can also ensure consistently high quality processes, products and availability by dynamically adapting to customer needs. What’s more, in some cases, quality can also be monetised,” says Martin Egloff, Head of Business Area MedTech & Healthcare at bbv. He can think of many examples of this. Instead of selling construction tools, a company offers tools for the period of use, including maintenance and replacement. With smart metering, for example, electricity meter data is provided as a service, eliminating the need for manual effort. And in mechanical engineering, a manufacturer not only offers its systems, but also supplements them with monitoring and calibration services in order to increase the customer’s productivity.

‘The opportunity to use services to create new business areas has a positive effect on the future security of a company’

Martin Egloff, Head of Business Area at bbv

The challenges of XaaS

The introduction of XaaS means changes for companies. Business areas need to be rethought or transformed. The integration of IoT systems, cloud platforms and robust data infrastructures is essential, and this involves effort and costs. The change from a product-centred business model to a service-oriented strategy also requires a cultural shift within the company. “Company management often has to face a challenging transformation, with various departments having to reorient themselves in order to collectively expand their focus from products to holistic customer experiences. The focus is not only on development departments, but also on sales teams, since they have to learn to sell services instead of products,” says Jonas Ruesch, Senior Consultant in the Industry division at bbv. In addition, sensitive customer data must be protected and regulatory requirements complied with in order to ensure customer trust.

A model for the future

Despite these challenges, Martin Egloff and Jonas Ruesch agree that XaaS offers enormous advantages for a wide range of companies. Anything-as-a-Service is not a trend, but a new paradigm in an increasingly digitalised world that could become the norm in business. Companies that embrace and help shape this change at an early stage will secure long-term competitive advantages. They not only benefit from more efficient processes and new business opportunities, but also position themselves as future-proof providers. bbv is a trustworthy partner with the relevant experience to accompany companies into the digital future and realise the potential of XaaS – from consulting and implementation to prototyping and testing. According to the two bbv experts, it is mostly about creating the technical and organisational basis for a service-oriented business area, promoting data-driven processes and products and driving forward automation. ‘The opportunity to use services to create new business areas and offer customised solutions has a positive and stabilising effect on the future security of a company’, says Martin Egloff.