Question

Business model PaaS (Product as a Service) implemented with IFS

  • 7 November 2023
  • 1 reply
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I
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Dear Community-Members,

We sell high tech machines.

In future, we will also be selling our machines as Product as a Service (PaaS). This means that the customer no longer pays a one-off price, but instead pays an annual fee (subscription) over n years based on attributes such as the licence model, terms and services purchased.

Two areas can be roughly identified here:

- Mapping of the PaaS process with offer, delivery and a clean subscription billing process (physical delivery vs yearly billing)

- Options for defining the licence models, similar to an EMS (Entitlement Management System)


Are there any IFS customers that implemented such a business model with IFS or third-party providers?


We are grateful for any input and would be happy to exchange ideas.


Thank you very much!
Mattis

1 reply

Marcel.Ausan
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@IFSmattis I’ve been working with a customer that was in the EaaS business (Equipment as a Service) and for the subscription part we have implemented Service Contracts.

By using Service Contracts, the users could create different service lines

→ one for periodical invoicing by using an Invoice Plan

→ one for Resources Used → to create Work Orders / Service Quotations and be able to invoice the customer if they accept the offer

The nice thing about using Service Contracts is that it has built in functionality for monitoring the profitability of the contract (cost vs revenue).

Regarding License Models, I’ve worked with one customer that was using Non Inventory Sales Parts for selling the license via normal Customer Orders.

 

I hope this helps! 

https://www.linkedin.com/in/marcelausan/

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