Industrial manufacturing OEMs face various challenges due to ineffective asset optimization programs, including difficulties in service monetization and inaccurate data limiting service contract sales, which can result in revenue losses. High service costs arise from inadequate monitoring and diagnostics, leading to unscheduled asset downtime and lower customer satisfaction. Additionally, regulatory pressures and the need for differentiation in products further complicate operational effectiveness.

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Industrial manufacturing OEMs face financial and operational
challenges in the absence of an effective asset optimization
program
Industrial asset optimization ► Industry challenges ► OEM
Difficult service
monetization
• Difficult to transition from product- to service-centric organization
• Inaccurate installed base data and inadequate analysis limits service contract
sale/renewal causing losses of up to 20% of services revenues
Higher service
costs
• Inadequate remote monitoring/diagnostics leads to high field fixes,
suboptimal field force scheduling and skill set matching
• Limited parts/tools availability due to inaccurate service forecasts, unplanned
shutdown, limited triage across warehouses etc.
Lower asset
uptime
• Unscheduled asset downtime impacts end-customer satisfaction and OEM’s
market share
Undifferentiated
products
• OEMs find it hard to create differentiation without strong value and
performance engineering to create more reliable machines
Increasing
regulatory
oversight
• OEMs and operators need to overcome increasing number of environment
(e.g. for oil & gas) and operational (e.g. NERC* for energy equipment)
regulations
*North American Electric Reliability Corporation