Asset as a Service
EXECUTIVE SUMMARY Asset-as-a-service (AaaS) business models are increasingly being adopted across multiple industry sectors, driven by a growing demand from users of such assets as machinery and equipment. In the AaaS model, users no longer purchase assets; instead, they are billed for the actual benefit they receive. However, to introduce AaaS business models successfully, parties must meet several conditions. AaaS models require the use of sensors to collect Internet of Things (IoT) and telemetry data, which is then shared and processed via networked systems, and provide a basis for calculating actual usage and current asset value. Automated billing, invoicing, and payment, as well as integration with existing enterprise resource planning systems, are important factors for scaling AaaS models. AaaS delivers both benefits and implications for the existing business models of all parties involved. These parties include the equipment manufacturer, the user, and investors, such as f...