Barathram Ananthakrishnan

Technology and advanced analytics are revolutionizing services − and creating new sources of value for industrial companies that know how to use them. Here is a roadmap that works. In search of sustainable ways to grow, industrial companies are turning to their vast installed base as a source of recurring revenues and profits.

In search of sustainable ways to grow, industrial companies are turning to their vast installed base as a source of recurring revenues and profits. Revenues from servicing, especially aftermarket services and parts, are generally more stable than those from equipment sales and have shorter lead cycles, so they offer a way to counter the cyclical nature of capital investments. In some subsectors, such as flow control, services tend to generate higher margins than equipment sales.

Technology and advanced analytics are revolutionizing services—and creating new sources of value for industrial companies that know how to use them. Here’s a roadmap that works. In search of sustainable ways to grow, industrial companies are turning to their vast installed base as a source of recurring revenues and profits.