Trump – Pay-per-Use – On the way to Industry 4.0
- Company name: Trumpf
- Product: Trumpf pay-per-use – machine subscription
- Industry: Industry 4.0
- Formation: 1923
- Location: Ditzingen
- Number of employees: 14,500
- Turnover: 3.8 billion euros (2019)
- Introduction of subscription-based model: no further information
- Offering structure: complementary
The Trumpf Group is one of the world’s largest suppliers of machine tools. The company’s headquarters are located near Stuttgart. The company group is represented by over 70 subsidiaries worldwide.
The two business areas of Trumpf AG are machine tools and laser technology. In the 2018/2019 business year, Trumpf had a turnover of 3.8 billion euros and approximately 14,500 employees, 7,400 of them in Germany.
Trumpf Pay-per-Use – a new business model for sheet metal working
Companies in the capital goods sector are clearly feeling the effects of economic peaks and crises and need to respond to advancing digitalisation. Trumpf is acting as a pioneer for new business models and strategies in the manufacturing world. The machine tool manufacturer’s goal is to be able to offer customers fast smart factory solutions. To this end, Trumpf is already testing various business models, including Trumpf Pay-per-Use.
Machine functions as a subscription: first steps into a new market
The advantages of disruptive business models for machine manufacturers and sheet metal producers are numerous. Renting a machine means less capital commitment and greater flexibility for the manufacturer. Unit costs can also be calculated more easily. As a manufacturer, digitalisation offers the possibility to make functions available for testing and to offer the customer only the exactly required machine functions as a subscription. Here, Trumpf has tested different business models: “Pay per Mark”, where the customer pays per laser marking; “Pay per Lasertime”, where the effectively used time of a marking laser is paid for; and the “machine functions as a subscription”.
With the Trumpf subscription, customers therefore no longer buy a laser machine, but pay a monthly fee for an agreed number of hours. At the end of the Trumpf subscription period, the machine is taken back and prepared for sale. During the subscription period, the machine manufacturer is also responsible for maintenance.
With the new offers, Trumpf is primarily addressing the changed order conditions. Increasing individualisation leads to many different orders with smaller order quantities. Through process optimisation, the manufacturer is supporting manufacturers in this changeover.
Trumpf TruConnect – the Industry 4.0 solution world from Trumpf
Trumpf has combined its digitalisation offerings under Trumpf TruConnect. Under this name, Trumpf offers consulting and implementation for the process automation . The company can choose between three steps: from a simple start to step-by-step adaptation to complete networking. Modular solutions that are individually adapted are then available on the way to the Smart Factory. The hardware, software and consulting services are combined as required. The manufacturer thus positions itself as a comprehensive service provider. Trumpf supports its customers through the analysis, planning and implementation phases. With the Trumpf Smart Factory Potential Check, Trumpf offers a tool to find out which steps in production can be improved thanks to Trumpf TruConnect.
The disruptive business models have been made possible by the new, better-connected generations of machines. However, this consistent networking and data collection is also a challenge. Above all, the clear separation of order and machine data is indispensable to build trust in the new business models.
For industrial companies like Trumpf, digitalisation also means a transformation into a service provider. The leased machine tools and functions must have high availability. Trumpf already ensures this with a remote maintenance concept that can solve the majority of all problems.
Trumpf Smart Factory – the factories of the future
The goal of the Trumpf solution world is the Trumpf Smart Factory. A Smart Factory is characterised by intelligently networked production and ideal process optimisation. This also includes, above all, the subscription strategies and Trumpf pay-per-use. Models that have the potential to change the industry. Subscription models have already created new revenues in other industries such as software manufacturers and tech service providers. Now industrial manufacturers are also turning to these new business models. With its modular solution world, Trumpf TruConnect helps companies to adapt to the new requirements. For sheet metal processing companies, this also opens up possible new business models, for example by accepting orders via central marketplaces. Trumpf is being observed by the industry as a pioneer in this field and more and more companies are using comparable concepts.
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