As-A-Service business models in trend: PAYZR from DMG MORI
- Company name: DMG MORI
- Industry: Mechanical engineering, EaaS, SaaS
- Product: Machine tools, SaaS and EaaS solutions for mechanical engineering (PAYZR)
- Formation: 1870
- Founder: Friedrich Gildemeister
- Location: Headquarters in Tokyo, Japan. Sales and service locations in 79 countries
- Number of employees: 12,000
- Turnover: 1.8 billion euros
- Total financing: n.a.
- Product costs: Solution-dependent
DMG MORI is a leading global manufacturer of machine tools. The company offers integrated automation, digitisation and sustainability solutions that extend the company’s core business of turning and milling machines, advanced technologies and additive manufacturing. DMG MORI’s customer-focused services over the entire life cycle of a machine tool include training, repair, spare parts service and maintenance.
DMG MORI as „Netflix of Manufacturing“
In the B2B context, DMG Mori sees itself as the “Netflix for manufacturing”. With its PAYZR solution, DMG MORI relies on “subscription & all-in” instead of “investment and purchase”. The advantages of this business model have been demonstrated in recent years. Companies thus save themselves the expensive purchase of a static solution and benefit from a range of services that can be expanded as needed. In addition, users always use the latest version. In a sense, DMG MORI and the users become value creation partners who participate in the joint value creation of software and machines.
Pay with Zero Risk – PAYZR from DMG MORI
DMG MORI’s PAYZR business model is a promising addition to the existing Software-as-a-Service and Equipment-as-a-Service offerings. PAYZR stands for “Pay with Zero Risk”. It offers customers the use of a software product or hardware with minimal costs and thus minimal risk.
This allows users to take full advantage of data-driven business models such as subscriptions and pay-per-use. With PAYZR, customers get software and hardware whenever they need it. PAYZR includes the 3-axis universal milling machine M1 as an Equipment-as-a-Service subscription model as well as the Software-as-a-Service offerings TULIP, WERKBLiQ and ISTOS.
Access is via digital channels such as the DMG MORI website or the customer portal. Here, the user accesses the DMG MORI Store directly with a single sign-on (SSO).
With PAYZR, DMG MORI once again underlines its status as a holistic pioneer for its customers. PAYZR enables companies to use the software and machines they need without investment risk, but with complete price and cost transparency, maximum flexibility and planning security.
As-A-Service business models in vogue: Software as a Service (SaaS) & Equipment as a Service (EaaS)
Information technologies no longer have to be provided and operated in in-house data centres. Today, it is possible to obtain IT via a variety of cloud and service models. The term “As-A-Service” describes various models of cloud computing services, some of the most sought-after of which are SaaS and EaaS.
Software-as-a-Service (SaaS) allows users to connect to and use cloud applications over the internet. SaaS provides a complete software solution that is purchased from a cloud provider on a per-use basis.
Equipment-as-a-Service or EaaS, on the other hand, is a business model that involves renting out equipment to end users. Collaboration on a SaaS and EaaS basis follows the same principle.
DMG MORI’s PAYZR is the prime example of such an As-A-Service offering.
The main advantages of using PAYZR and comparable “As-A-Service” business models are:
- Increased flexibility
- Maximum planning security
- Cost control
- Accelerated innovation cycles
- Time saving
From the point of view of sustainability and the ongoing digital transformation, it can be predicted that the trend of as-a-service offerings as a flexible and inexpensive business model will continue to accompany us in the future.