FINDUSTRIAL was able to implement the following pay-per-use project in collaboration with a European manufacturer of flight simulators.

INITIAL SITUATION

• The company works with customers from the government with public-sector budgets as well as private companies in the airline industry
• Purchasing flight simulators via a high one-time investment is very difficult for these customer groups
• There is demand for flight training equipment, and the utilisation of the equipment is fluctuating
• For the pilot training provider, this means income that is difficult to calculate and a start-up problem due to the fluctuating cash flow from the one-off sale of the machine
• With new aircraft models there is risk of start-up curves
• fluctuations due to volatility in passenger aviation

MANUFACTURER SITUATION

• The manufacturer of the flight simulators is a renowned but smaller player in the industry
• The products are of very high quality and the manufacturer, as well as the simulators, have a very good reputation with customers
• Currently, the manufacturer has a lot of orders, but orders fluctuate very strongly in different years
• Secondary market can be served by the manufacturer
• The flight simulation industry is seeking/demanding new solutions for acquisition of the machines, as the investment amounts for the current uncertain times are very high, which makes them an enormous hurdle for the manufacturer’s customers.
• Partial investment freeze in the aviation sector

MANUFACTURER DECISION

Based on the situation described in the initial situation, the decision was made to develop a new solution. The manufacturer wants to structure the business model in such a way that a significant part of the revenues will come from recurring sales in the future. For the implementation, they decided to take the step towards ‘simulator-as-a-service’ with Findustrial. Together, we are developing customer-oriented solutions for the flight simulator portfolio in order to overcome the current hurdles and achieve the company’s goals.

CHALLENGES

• The biggest challenge in the partial transformation of the business model is the initial high capital requirement needed for the business model transformation
• Furthermore, the IT structure and business operations are not streamlined for recurring billing and need to be adapted
• Since the business is very international in nature, the solution should be structured so that the simulators can be offered worldwide.
• The manufacturer’s customers often have different needs for flexibility that must be considered

SOLUTION VIA FINDUSTRIAL PLATFORM

• The manufacturer can monitor the simulators in real time via the IoT connection
• The ‘simulator-as-a-service’ offer can be managed in a targeted and cost-optimised manner on the Findustrial platform
• Depending on the customer’s requirements and situation, different models are possible (PPU leasing, PPU credit, PPU rental via a variety of refinancing models)
• Pay-per-use models are processed and invoiced flexibly outside the industry partner’s ERP system. The data for integration into the ERP system is provided on an ongoing basis.
• The Findustrial platform gives the manufacturer access to financing partners for various regions and target groups
• Financing via partners helps conserve the principal bank credit lines