Building a common framework for servitization
Welcome to Copperberg’s live coverage of the “Servitization Keynote: Building a Common Framework for Servitization,” as part of the Aftermarket Virtual Summit.
This keynote session is brought to you by Daniel Cho, Senior Director Marketing, Connected Care at Philips Healthcare, and Thomas Igou, Head of Content at Copperberg.
In this live session, strategic pricing expert Daniel Cho will provide valuable insights into the main 4 pricing variations: time-based, transaction-based, unit-based, and outcome-based.
➤ Philips Connected Care’s COVID-related solutions brought a 42% sales growth to the company, according to Daniel Cho.
➤ A common framework is necessary in order to justify the price, scale to support further innovation, build a sustainable business model, and create an internal and customer business case.
➤ To build a sustainable model and support future innovation, Daniel Cho recommends building a business model that doesn’t have a minimum stream of income.
➤ Daniel Cho: “Link your solutions-as-a-service directly to your customer’s KPIs.”
➤ Strategic pricing expert Daniel Cho states that one of the strongest value propositions for your customers is to own one of their most challenging KPIs for them.
➤ The REDI Kits created by Philips for COVID response have proven to be fast and easy to order, deliver, and deploy. This achievement was possible thanks to the aaS model that combines operational, financial, and clinical KPIs.
➤ Daniel Cho wisely states that price can be built up by combining different value drivers.
➤ The Philips TeleHealth eICU Program has proven to reduce LOS and increase revenue flow. Additionally, it also increased the likelihood to survive, leading to faster discharge.
➤ If you want to build a sustainable value-based framework that is linked to your customer’s KPIs, you should start low in the value framework and build yourself up. Each level requires organizational maturity in order to enhance delivery, according to keynote speaker Daniel Cho.
➤ Daniel Cho: “Use the value framework as a roadmap for your future development.”
Up next: Stay tuned for the upcoming “Keynote: How Haemonetics Drives Service Transformation with AI.” At 2 PM CET / 3 PM EEST, Deniz Mullis—Director, Global Field Services & Product Support at Haemonetics Corporation—will reveal how AI helps improve service KPIs and shrink the performance gap across her company’s service centers.