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