I had the pleasure to do a kick-off presentation for the peer-discussion session during the closing Crystal Ball Outlook at the Field Service Asia conference in Singapore. The topic was, whether it is now time to transition to XaaS.
Some key messages on this topic are:
- XaaS or Product-as-a-Service in itself is not a value proposition. It is part of the solution to deliver value, it’s a business model.
- The challenge is to identify an important challenge of your clients, a crucial task-to-do for your client which is not being addressed yet. Often this involves a new value proposition based on new customer insights, which may even be new for your customers. Are the ready for such a value proposition?
- This requires a deep customer insight, often beyond what customers can tell you. We need various tools and sources to build this customer insight.
- Typical of disruptive innovation is that a new value proposition or solution might not be relevant for your current clients – not yet. The risk is that we decline initiatives in this direction, while future competitors address other market segments and grow business and capabilities. At some point, their solution and value proposition has evolved, the needs of your customers have evolved, and you lose your customers as they deviate to these new players. This is the story with for example low cost airlines and Blackberry. The so-called Innovators Dilemma (book written by Clayton M. Christensen).