Manufacturers, it’s time to take action. According to a recent study, nearly 50% of you are already connected to your products, with 37% planning to follow soon. This shift, fueled by AI advancements, is fundamentally transforming how companies connect data across devices and other business systems to unlock recurring revenue streams.
The importance of connected devices in modern manufacturing:
- Monitor equipment in real-time to catch issues before they escalate, reducing downtime and lowering maintenance costs.
- Adopt a usage-based model where customers pay for usage, creating recurring revenue streams instead of outright purchases.
- Leverage IoT analytics to offer tailored maintenance plans, increasing customer satisfaction and reducing service costs.
At Lexmark, we recognized the need for change early. With over 7 million devices in the field — 1.5 million connected to the cloud — we transitioned from traditional hardware and warranty sales to subscription-based services. As a result, our recurring contract revenue has increased to 40% of our total revenue, enabling us to achieve a customer renewal rate of 98%. This is the power of connected devices to drive business outcomes.
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