Digital business models are providing new impetus in mechanical engineering

Printing industry already a leader in digital transformation driven by subscription solutions

As already at the 1st Subscription Leaders Summit in Frankfurt am Main, Germany, in mid-October 2019, the subject of subscription solutions as a driver of innovation will also be the focus of attention at the Maschinenbauforum 2019 (Engineering Forum) in Pforzheim, Germany. The four-day event from 12 to 15 November 2019 wass well attended with over 200 participants and top-class speakers.

It kicked off with contributions and discussions on trends in digital business models and the impact on after-sales service. It turned out that the German key industry of mechanical engineering does not need to hide in digitization issues.

Industry in transition

Fact is: In more and more manufacturing companies in the industry, the hardware moves into the background; on the other hand, smart services become a unique selling proposition. No wonder, then, that the organizers of the Engineering Forum dedicated two days to the important topic of "after-sales service", in order to illustrate how more and more digital, value-based business models are prevailing.

As a key factor for a successful future, some of the speakers consider the convergence of marketing, sales, and service. Dr. David Schmedding, Head of Customer Segment Management & Subscription Business at Heidelberger Druckmaschinen AG, made the following key statements in his lecture "From Predictive Monitoring to Pay per Use – When the number of printed sheets counts":

"Big data is the key to monetizing customer productivity."
"We [at Heidelberg] have already completed around 60 subscription contracts in twelve countries; there are already 30 newly installed machines in production."
"We want to further develop our subscription offer into an ecosystem for the industry."

Smart Services and Subscription Solutions

Dr. Schmedding explained the connection between Heidelberg's constantly accumulating wealth of data and the development of Heidelberg Subscription as a highly functional overall system consisting of machine, software, consumables and expert consulting services, with which customers achieve greater output with lower costs.

The result is a new business model for the customer, which ultimately leads to a partnership between the print service provider and Heidelberg with equal interests, through which recurring revenues can be generated.

Other key lectures highlighted the importance of platform economics in service (Braincourt GmbH) or the requirement of holistic lifecycle management on the way to becoming a digital solution provider (BHS Corrugated Maschinen- und Anlagenbau GmbH). According to expert opinion, Heidelberg is already playing a pioneering role in the graphic arts industry and, as the Forum has shown, against other branches of mechanical engineering.

Two additional seminar days are designed to give participants an impetus for the development and implementation of digital business models primarily in service.