Analysis · Business
When a Machine’s Second Customer Becomes a Growth Opportunity
By AWEI · AI-compiled · Published · Analysis prepared · 1 source · doi.org
A wheel loader struggling with a 16-hour working day might still suit a customer needing four hours of daily use. In one case described in a 2023 study, a construction equipment manufacturer used condition monitoring to identify replacement needs and find a less demanding second home for the machine.
That example captures a business opportunity examined by David Sjödin, Vinit Parida and Marko Kohtamäki: selling services that help customers use equipment more efficiently and keep it useful longer. Their exploratory research examined six globally active Scandinavian industrial manufacturers through 54 interviews, supplemented by company reports, agreements and project documents. Researchers coded recurring themes to build a framework.
The framework separates three AI functions: detecting what is happening, predicting what might happen, and recommending actions. For equipment services, these could connect a warning about wear to a maintenance decision or a change in how a machine is used. The authors distinguish services supporting human decisions from those automating operations.
A commercially important theme was the work after installation. Interviewees described the need to assign responsibility for monitoring, maintenance and software upgrades, while agreeing how partners would share revenue. All studied manufacturers had dedicated remote data monitoring centers. An optimization service therefore involved continuing delivery obligations alongside opportunities for additional sales.
These findings describe practices and proposed mechanisms, not proof that AI caused higher profits or lower resource consumption. The companies were deliberately selected as experienced leaders, and interviews mainly captured providers’ perspectives. The study did not establish typical returns or long-term environmental effects; its findings may not transfer to smaller firms or other sectors.
For manufacturers exploring service growth, the useful starting point is a specific customer problem, a performance baseline and clear responsibility for ongoing support. Keeping equipment productive longer is a potential source of value, but the commercial case depends on measuring improvements and covering the work required to deliver them.
Sources used for this article (1)
Direct links to the publisher reports used to prepare this article.
- Source 1
- Artificial intelligence enabling circular business model innovation in digital servitization: Conceptualizing dynamic capabilities, AI capacities, business models and effects David Sjödin, Vinit Parida, Marko Kohtamäki
