Date published: June 26, 2024

Unlocking New Revenue Streams with Servitization and Digital Twins

The business world is evolving at breakneck speed and merely selling a product is no longer enough. Companies that want to grow market share must continuously innovate to add value for their customers. One of the most promising strategies to emerge in recent years is servitization, where businesses shift from selling products to offering comprehensive services. By harnessing the power of digital twins and AI, companies can not only enhance customer satisfaction but also unlock new revenue streams and solidify their market positions.

The Rise of Servitization

Servitization isn’t just a buzzword, it’s a fundamental shift in how companies think about their offerings. At its core, servitization is about transforming a business model from product-centric to service-centric. For example, instead of only selling machinery, a manufacturer might provide preventative maintenance services and digital optimization services to ensure customers get maximum value from their investment. The benefits are clear:

Enhanced Customer Relationships: Providing ongoing services fosters deeper connections with customers.

New Revenue Opportunities: Service models offer continuous revenue streams beyond the initial sale.

Competitive Advantage: Unique service offerings differentiate companies in the marketplace.

Enter Digital Twins

So, what exactly are digital twins? Think of them as highly detailed virtual replicas of physical assets, systems, or processes. These digital doppelgangers allow businesses to monitor performance, simulate various scenarios, and optimize operations in real time.

Real-Time Monitoring: Digital twins provide instantaneous performance data, allowing for quick adjustments.

Predictive Maintenance: By anticipating failures before they occur, digital twins help reduce downtime and maintenance costs.

Operational Optimization: Simulating different scenarios helps in identifying the most efficient operational strategies.

The Power of AI in Diagnostics

AI-powered diagnostics take the capabilities of digital twins to the next level. Integrating AI enables businesses to get deeper insights and make smarter decisions faster.

Automated Analysis: AI can sift through vast amounts of data, identifying patterns and anomalies that human analysts might miss.

Cost Efficiency: Predictive maintenance through AI reduces the need for costly manual inspections.

Improved Decision-Making: AI provides actionable insights that help in making informed decisions to enhance efficiency and performance.

A Real-World Success Story: Solar Spy

To see these technologies in action, look no further than Solar Spy, a leader in solar energy management. Having identified challenges in understanding true site performance and operational efficiency in the PV industry, Solar Spy partnered with Pragmile to develop a sophisticated digital twin solution. The results were transformative:

Operational Efficiency: Real-time system monitoring drastically reduce the need for manual inspections, cutting maintenance costs.

Performance Improvement: Accurate modeling allows for better performance strategies, closing the performance gap.

Enhanced Forecasting: AI-driven predictions improve energy trading strategies and help avoid negative pricing impacts.

The digital twin created for Solar Spy was nothing short of revolutionary and we are truly proud of this success. It captures the entire site’s geometric, electrical, and environmental properties, offering a comprehensive virtual representation that enables proactive maintenance and optimized operations. This collaboration not only transformed Solar Spy’s service offerings but also underscored the immense potential of digital twin technology in the renewable energy sector.

Integrating Technologies for Business Growth

For businesses eager to leverage servitization, digital twins, and AI, the path to success might seem daunting. However, breaking it down into manageable steps can make the journey smoother and more effective. Here’s how to get started:

Comprehensive Data Collection: Collecting data is the foundation of creating accurate digital twins. This means gathering detailed, high-quality data about your physical assets and processes. Quality matters more than quantity here. It’s essential to ensure the data is precise and up-to-date, covering everything from physical dimensions to operational metrics.

Developing Detailed Models: Once you have the data, the next step is to build detailed 3D models. These models should incorporate all relevant physical and environmental factors, creating a virtual replica that mirrors the real-world conditions as closely as possible. This ensures that simulations and analyses are based on realistic scenarios.

Prototyping and Testing: With your models in place, develop and refine prototypes. This phase is crucial for ironing out any kinks and ensuring the digital twin behaves as expected. Gather feedback from end-users to make iterative improvements. Testing in controlled conditions helps to anticipate how the digital twin will perform in real-world applications.

Implementation and Optimization: After prototyping, it’s time to roll out the solution across your operations. However, implementation isn’t a one-and-done process. Continuously collect feedback and use it to optimize the system. The digital twin should evolve with your business, adapting to new data and operational insights.

Proactive Maintenance: One of the biggest advantages of digital twins is the ability to perform proactive maintenance. Use real-time data to monitor the health of your assets and predict when maintenance is needed. This approach minimizes downtime and extends the lifespan of your equipment, ensuring smoother operations.

Accurate Forecasting: Leverage AI to make precise predictions about production and performance. Accurate forecasting helps in strategic decision-making, whether it’s adjusting production schedules or planning for future capacity. AI-driven insights can reveal patterns and trends that might be invisible to the human eye.

Future Trends and Innovations

As we look to the future, the integration of servitization, digital twins, and AI will continue to evolve, bringing even more transformative changes. Here are some key trends to watch:

Advanced Simulation Tools: Expect to see more sophisticated simulation tools that offer highly accurate performance predictions. These tools will enable businesses to experiment with different scenarios and optimize their operations before making physical changes.

Increased Automation: Automation will further reduce the need for manual interventions, optimizing operations across the board. From manufacturing to logistics, AI and digital twins will automate routine tasks, freeing up human workers for more strategic roles.

Scalable Solutions: As these technologies mature, they will become more adaptable and scalable. This means that businesses of all sizes and across various industries can implement digital twins and AI solutions tailored to their specific needs and regulatory environments.

Conclusion

The future of business lies in leveraging advanced technologies like digital twins and AI to move beyond traditional product sales and offer comprehensive, value-added services. By embracing servitization, companies can significantly enhance efficiency, reliability, and profitability.

For those ready to explore these transformative technologies, Pragmile offers expert teams and bespoke solutions tailored to meet specific business needs. With Pragmile’s help, businesses can harness the power of digital twins and AI to stay ahead in a rapidly evolving market. To find out more, please contact Marcin Jabłonowski, Pragmile MD, directly on LinkedIn or via mail at info@pragmile.com to request the complete case study and discuss potential applications tailored to your needs.