Servitisation

Servitisation

Working in partnership to deliver the return on investment that you need, cost effectively. Whatever your challenges are we want to stand shoulder to shoulder with you and help you to build a sustainable business. Servitisation is about an outcome-based relationship  based on service offerings that fit with your unique challenge and ultimately have a financial benefit.

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Servitisation and Digitalisation

Combining servitisation and digital technologies is a powerful means to manufacturing competitiveness  
Servitisation and digitalisation
Servitisation and digitalisation

Manufacturers have mega challenges, including customisation at speed, faster commissioning and energy reduction. 

 

A targeted approach to embed the core components of a digitalisation strategy throughout a manufacturer’s operations will provide the highest yield long-term. By standing shoulder to shoulder with Siemens you won't be left to work out the business case, nor would you be alone in measuring the success. The funding and implementation risks are transferred to us, with payment only due once the level of pre-agreed savings is delivered.


Read more about digitalisation within these industries:  

Process Industry

Pay for outcomes, based on numbers you can trust

Find out how Knauf Insulation has saved energy and built a sustainable business through a cash-positive commerical model. 

See the full story

Co-creation to deliver on contracted outcomes

Old world

The customer is accountable to identify an opportunity and create the business case to install a new asset, production equipment or system on site that could help tackle their challenge.

The manufacturer would raise the required capital via their CAPEX programme and procure from a machine builder (OEM) where Siemens would work on the technology specification.  The OEM would install the new asset on site with a standard warranty term and the end user is left to ensure the asset performs through its life.

New world

Siemens collaborates to identify and create the business case together with the customer and then provides a service to deliver an outcome the end user wants from the equipment through a period of time.

Siemens procures and installs the required asset using a tailored financial model and delivers a performance based service with the manufacturer based on a monthly service fee.  Siemens supplies the technology hardware, the digital infrastructure and the service.

          

               

The benefits of moving from old to new

It moves a percentage of the expenditure from CAPEX to OPEX to make customers more competitive and improve EBITDA, limit obligation and maximise cash flow health.

It also allows manufacturers to access scalable and future proofed digital technology solutions to optimise production performance and tackle critical and expensive issues such as waste.  

Finally, it supports responsible manufacturing by providing the means to address issues such as energy management and carbon footprint impact.

Energy efficiency

Energy efficiency

An outcome based relationship allows us to partner with manufacturers to optimise energy use throughout all aspects of the production process, with a financial model that allows payment for this transformation out of the savings made further down the line.

Waste

Waste

Tackling the issue of inefficient production performance and reducing waste volumes through factory optimisation can lead to tangible rewards of higher yields, cost savings, a positive impact on the environment, as well as making a positive contribution to the worldwide challenge of feeding our populations.

Mini-webinar

Steve Martin, Head of Strategic Sales, reveals why this is a good time to consider an outcome-based model and how you can make it work for your business. He’ll also reveal how Siemens helped the world’s fourth largest glass manufacturer capitalise on servitisation to drive down their carbon footprint.

Watch now

Financing and payback designed around the return that you need

There is a balancing act to get to the crux of a challenge with a solution that is commercially attractive and measurable, and underpinned with a payment plan that maximises the customer’s ability to control cash and profits. That’s why by using an innovative tailored investment funding package and sharing the risk, the strategic partnership with Siemens allows manufacturers to support investment strategies in critical areas such as energy management, without having to tap into existing cash reserves, impair day-to-day cash flow health or even resort to traditional bank funding.  
Find out how Knauf Insulation got the RoI they needed

Read the full story

References

Servitisation innovations that have helped our customers
Pilkington Glass

Pilkington Glass

  • Pilkington is on target to achieve £340,000 of energy cost savings annually across its UK operations and all projects are on course for a three year payback timescale.  

  • Projects included the installation of new drive technologies and automation controls, new pump system upgrades and a programme to install an intelligent lighting solution.  

  • Tailored funding and shared risk allowed investment in critical areas without tapping into existing cash reserves or resorting to traditional bank funding.​  

Knauf Insulation

  • Across two manufacturing plants Knauf Insulation is now achieving energy savings of over 12,000 MWh/year with a yearly reduction of over 5000 tonnes of carbon emissions. 

  • Knauf Insulation gained from fully funded, turnkey solutions, project managed by Siemens highly skilled experts. The company is now benefiting from the Siemens performance-based Energy as a Service model. 

  • Knauf Insulation only began to pay once the agreed equipment and systems were installed and commissioned.

Find out more

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