AS A SERVICE MODEL
Published in
3 min readFeb 13, 2021
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𝗫𝗮𝗮𝗦 𝗮𝗻𝗱 Industry 4.0 Mega Trends
𝗫 𝗮𝘀 𝗮 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 — 𝗔 𝗖𝗼𝗻𝘁𝗶𝗻𝘂𝗼𝘂𝘀 𝗝𝗼𝘂𝗿𝗻𝗲𝘆
■ With the growing use of the “XaaS — X as a Service” model, the importance of services gets increased manyfold. In the “As a Service” business model, we sell our products with associated service differentiation.
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■ Although, every product manufacturer tries their level best to make and produce the best and flawless product, still, nothing is perfect in this world.
■ Still, there is no 100% surety that a product will work with perfection. We cannot assure that a product will work with maximum efficiency during the complete lifecycle of a product.
■ That’s why companies provide associated product guarantees and warranties in terms of three “R” (Return / Repair / Replacement).
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■ The role of Services comes into the picture, Whenever a product gets failed. These are the services that complement a product to increase its availability by taking proactive and corrective measures.
■ Again, these are the services, which become a differentiation factor for a product by providing a quick resolution in terms of repair and replacement of a product.
■ Like a product where we sell it with specified guarantee and warranty terms, Services are generally sold with a common term — “SLA — Service Level Agreement”, where a seller ensures the resolution of an issue in terms of specified timelines, along with other terms and conditions.
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■ In the Service business model, products are differentiated with following four factors –
■ 1. High Reliability (Performance of a product as per the specifications)
■ 2. High Availability (Continuous working of a product)
■ 3. Response Time (Time within which a company responds, in case of any issue)
■ 4. Resolution Time (Time within which a company resolves an issue)
■ Most product manufacturers differentiate their products support services based on these factors only.
■ For example, the services would have a high cost which ensures High Reliability, High Availability, Less Response Time, and Less Resolution time as compared to Best Efforts services.
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■ Now we can clearly see that Services are more important as compared to a product.
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■ Because we can expect a failure of a product, but these are the Service that will ultimately ensure your Continuous Business Operations.
■ Further, it’s natural that a product’s functionality and performance will decay with time, during its lifecycle. In this scenario as well, services become more important to detect and predict the malfunction and decaying performance of a product by applying proactive measures.
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■ With this viewpoint, we can conclude that it is the Customer Experience, which we deliver by complementary Products and Services.
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Academy ti4 | www.ti4.org
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