Teamcenter SLM: A Powerful Ally in the OEM Servitization Journey

By Torsten Beste

The aftermarket holds immense revenue potential for manufacturers of Original Equipment (OEM). However, simply offering services isn’t enough. To thrive in this space, manufacturers need to adopt a servitization mindset, one that prioritizes delivering value to the customer through a mutually beneficial partnership.

This blog explores how Teamcenter Service Lifecycle Management (SLM), based on Product Lifecycle Management (PLM) can empower OEM manufacturers in their servitization journey.

Improve operations and increase revenue with servitization

Servitization is especially applicable to manufacturers who have a need to improve field service operations and increase aftermarket revenue on assets that are critical to the end user’s operations. Unlike new product introductions (NPIs), servitization requires no heavy capital investment or long development cycles, and the revenue it provides is more predictable compared to new product sales. If achieved, servitization success is likely to increase your profits, especially in cases where your margins on service are higher than your product margins. Customer loyalty will also improve with quality service and increased first-time-fix rates. Sustainability initiatives can also be met – including success in product efficiency goals, and keeping assets in production longer.

Differentiate your business with service excellence

As stated in the IDC Survey Spotlight, Will Servitization Become a Differentiator and Driver of Revenue Growth for the Aftermarket? (doc #US52424624, July 2024), nearly 75% of service leaders anticipate a transition to servitization models within the next two years. Servitization models offer customers more flexibility in how they operate with options like Product-as-a-Service (PaaS), uptime contracts, and outcome-based service agreements.

A comprehensive digital twin that extends to service is key to knowing and tracking your customer’s individual asset configurations, requirements, and service history. It supports the ability to handle potential failures effectively, and enables design for service and sustainability. Breaking down walls between design, manufacturing and service will help you to predict, plan and respond to maintenance events, reduce asset downtime, and improve the overall efficiency of service operations, helping you to improve customer satisfaction, and differentiate your business in the market.

How Teamcenter Service Lifecycle Management can help

As part of the Siemens Xcelerator portfolio of solutions, Teamcenter SLM is a powerful tool that can significantly aid OEM manufacturers in their servitization efforts with:

Improved visibility: Teamcenter SLM provides a comprehensive view of product information and related data in context with service activities. This includes visibility to physical assets in their current configuration, enabling better management of maintenance plans, workforce and skillset requirements, and creation of service documentation tailored to customer assets.
Enhanced collaboration: The PLM-based solution fosters seamless collaboration between service teams, engineering departments, sales teams, and external partners, ensuring everyone is aligned on service delivery goals.
Ensured compliance: Data collections as well as measurements are recorded and saved in the context of the physical asset’s configuration. As a service provider, this helps you ensure compliance against regulations, and can also act as your checklist to avoid technician human error.
Data-driven decisions: Teamcenter SLM facilitates the collection and analysis of product and service data, which can be used to identify areas for improvement, optimize service offerings, and develop new value-added services.
Proactive maintenance: By leveraging product data and sensor information, Teamcenter SLM can enable predictive maintenance, minimizing downtime and enhancing customer satisfaction.

Teamcenter SLM offers a robust solution that empowers OEM manufacturers to navigate the servitization journey effectively. By facilitating improved visibility, compliance, collaboration, data-driven decision making, and proactive maintenance, Teamcenter SLM elevates service efficiency to new levels, and can be a key driver of growth and success in the aftermarket.