In many industrial sectors, original-equipment manufacturers (OEMs) face a challenging and uncertain future. In recent years, input prices have fallen and growth in emerging markets has slowed, decreasing new-equipment sales in industries ranging from oil and gas to agriculture to commercial aerospace.
When exploring aftermarket value pools, industrial OEMs are often tempted to prioritize data-driven advanced services enabled by digital innovation and the Internet of Things (IoT).
To help OEMs develop a strategy that suits their needs, this article discusses aftermarket lifetime value in detail. First, we examine the three factors that can influence value: product lifetime, lifetime penetration, and average-annual services revenue. We then discuss how companies can use aftermarket lifetime value to benchmark their performance against their industry peers. Finally, we look at strategies for increasing aftermarket lifetime value that can help boost the core business
Viscera Energy Ltd Is an Energy Operations & Maintenance Limited aimed at providing engineering & manufacturing solutions or critical & severe service applications within the industries.