1、Why aftermarket and service are vital to OEMsand how to excelA comprehensive approach,supported by a strong enabling organization,can help B2B industrial manufacturers tap into the value of aftermarket and service.Simone VescoJune 2024Cover image Monty Rakusen/Getty Images.Introduction 3Part 1:Servi

2、ce excellence 6Innovation to market 8Market to order 15Order to delivery 20Delivery to cash 31Enabling factors 33Part 2:Tech-driven trends and innovations 44Offering a B2C-like customer experience 46Exploring servitization 47Collecting,analyzing,and monetizing data 50Softwarization of features 51Sus

3、tainability as a key to unlock new value pools 52Higher-than-expected maturity in remotization 54Localization paradigm 56Online marketplaces 56Building ecosystems around products 57Considering disruptions to the service workforce 58Conclusion 60Contents3Why aftermarket and service are vital to OEMsa

4、nd how to excel IntroductionWhether manufacturers serve consumers,other businesses,or governments,the aftermarket and service matter.For many OEMs,what began as a relatively unsophisticated side business selling spare parts now contributes to a majority of their margins:these can be up to four times

5、 as high as they are for new units.This pattern is evident among top market performers,as companies that have excelled in the aftermarket and service have been strongly rewarded over the past 15years,with double the TSR of companies that dont focus on service(Exhibit 1).The importance of aftermarket

6、 and service has been more differentiating and acute amid recent economic conditions,in which uncertainty,high inflation,and high interest rates have pushed many companies to postpone capital investments.Generally,capital expenditures are higher when investing in new production lines compared with a