Data-based value creation: How a digital installed base opens up new sources of revenue

February 28, 2025
A digital installed base plays a central role in how companies not only optimize operations, but also develop completely new service and business models.

Data-based value creation: How a digital installed base opens up new sources of revenue

Industrial digitalization is changing the way companies create value from their products and services. The digital installed base - the entirety of a company's networked machines, systems and devices that continuously supply data - plays a central role in this. Using IoT technologies and cloud platforms, companies can not only optimize operations, but also develop completely new service and business models.

What is a digital installed base?

Traditionally, machines were hardly monitored after the sale - service and maintenance were carried out reactively or at fixed intervals. With IoT and connected systems, this has changed fundamentally: Manufacturers can now collect real-time data on the condition, usage and performance of the products they sell. This data flows into a central platform that enables 360-degree transparency across the entire installed base.

The advantages are obvious:

  • Better customer service through data-based insights
  • Increased efficiency through more precise maintenance planning
  • New sources of revenue through digital services and pay-per-use models
  • Higher machine availability through predictive analyses

New sources of revenue through a digital installed base

1. predictive maintenance & condition monitoring
One of the first and most obvious ways to monetize a digital installed base is predictive maintenance. Instead of just selling customers spare parts or maintenance contracts, manufacturers can offer smart service packages based on the actual condition of the machines. This reduces unplanned downtime and saves the customer money - while the manufacturer generates regular service revenue.

2. pay-per-use & asset-as-a-service (AaaS)
Many companies are switching from capex to opex models by no longer selling machines but offering them as pay-per-use or asset-as-a-service solutions. Thanks to the digital installed base, manufacturers can record exactly how often a machine is used and only charge customers for actual usage. This makes investment decisions easier for customers and creates a steady source of income for manufacturers.

3. data-as-a-service
The data collected in a digital installed base is not only of great value to the manufacturer itself, but also to customers and partners. For example, manufacturers can offer benchmarking data, optimization recommendations or performance analyses as independent services. Companies that use these data-based services can make their production processes more efficient and achieve competitive advantages.

4. sustainability and ESG data management
More and more companies are required to document their CO₂ emissions and energy consumption. A digital installed base enables automated ESG data collection so that manufacturers can provide their customers with environmental reports and sustainability analyses as an additional service. This is not only an added value for the customer, but can also serve as a differentiating business model for the manufacturer.

An example from practice

An international machine manufacturer has equipped its installed base with an IoT platform and now offers pay-per-use models for its customers. Instead of buying a machine, customers only pay for actual use - for example, per operating hour or unit produced. Thanks to real-time monitoring via the digital installed base, the machine manufacturer can also offer preventive maintenance so that there are hardly any unexpected downtimes. The result: higher customer satisfaction, lower downtime costs and a stable, scalable revenue model for the manufacturer.

‍Aboutcap-on

cap-on supports companies in digitizing their installed base and developing new business models. With modular IoT solutions, cap-on enables predictive maintenance, pay-per-use, ESG data collection and AI-supported analyses to efficiently manage machine parks. The cloud-based platform provides a secure, scalable and easy-to-integrate solution that enables manufacturers to not only connect their machines but also tap into new revenue streams.

The digital installed base is more than just a technology - it is a strategic opportunity for companies to reposition themselves in the digital age. With cap-on, this transformation is simple, secure and economically successful.

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