How to give your business model the makeover it needs

It’s time for new horizons. Data-driven “pay-as-you-go” models are the gatekeepers to growth says Arne Thor.



The industrial value chain is changing fast. 2017 will be a breakthrough year for full lifecycle services in manufacturing based on the pay-as-you-go approach. That’s the forecast of Arne Thor, Head of Industry Solutions at Tieto.

Standing on the sidelines of digitalisation is not an option, he points out. Getting prepared and building a strategy for a data-driven future equals good governance.

“It’s not just about surviving the storm. Companies need to rethink their business model and adopt new technologies to retain their power to innovate. I think a good starting point is to look beyond your own horizon and study how new customer relationship models are taking effect across industry sectors,” he explains.  

Change is in the air: the shift to lifecycle services

Adding value throughout the customer journey, and not just selling products, is the key to survival and growth. Thor underscores that everything from industrial cranes to trucks and mining equipment are now being supplied on a pay-as-you-go basis. But that’s not all.

“Consider manufacturers of air filters. By monitoring air quality using sensors, customers no longer need to get in touch with suppliers as filters become part of an automated maintenance process. So the sales pitch is shifting from filters to a ‘clean air’ environment in offices or schools. That’s the future.”

There is no shortage of other illustrative examples. The urgent need for new thinking applies everywhere, says Thor, and there’s no time to lose in harvesting data and putting it to good use.

“Suppliers to the restaurant trade are already tracking consumption levels of beverages and gas cylinders,” he continues. “Delivery and logistics companies are getting temporary access to facilities and optimising inventory. This means they can achieve major cost savings and win new customers.”

Connecting sensors and data-processes to physical operations and laying the groundwork for automated maintenance is a no-brainer. As Thor concludes, the question isn’t if companies should get on board, but if they can afford the risk of waiting.

“If companies want to stand a chance of being competitive they need to introduce new business systems that collect data, learn and adapt using standardised software. When this happens the opportunities for new business will be far greater than the challenges of the current transformation.”

Want to make the road ahead more tangible and identifiable for your business? Explore our recent report “The road ahead for Scandinavian industry”. Download report (EN).  




Arne Thor
Sales Director