Welcome to the first edition of the Business Model Brain Snacks! In this series, we introduce new concepts around business modeling, such as novel business models, ways to transform your business model, and methods to scale your business. If you like this content, please follow us and share this post.

We start the series with Pay-per-use. The Pay-Per-Use model is an alternative to the traditional “buy and own” model that can help traditional companies transform their business model.

How? Think about a manufacturer of escalators. Traditionally, the company would sell the escalators and provide maintenance. With the pay-per-use business model manufacturers ‘waive’ the sale. Instead, they provide machines, products or plants as a service for a service fee. For example, the manufacturer of the escalators could receive a fee for each completed hour of operation of the escalator. This approach shifts the operating risk to the manufacturer. However, there are many advantages. For instance, the manufacturer can gather information from the operation of a larger number of systems, use this information with big data for so-called predictive maintenance, and, as a result, achieve more operating hours. Also, the customer of the manufacturer can use its capital more efficiently, which increases customer satisfaction – and who doesn’t want that ;).

So this is the Brain Snack of the week. If you like this content, please comment, follow us and share this post! Also, you can explore more ways for digital transformation on www.smartbusinessmodeler.com.

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