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Conference Presentation

How the Digital Transformation is Wrecking OEM Business Models

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The operating model of traditional OEMs was designed to optimize the push of prepackaged products to customers via large, up-front deals. The goal of the CapEx model was usually to get the maximum amount of product assets transferred from the OEM’s balance sheet to the customer’s balance sheet in one big order, with 70% or more of the total purchase price paid up front.

 There are two huge problems these days: 
1)        Customers don’t care about the OEM’s product anymore. The core technology asset of the OEM is commoditizing.
2)        The Digital Transformation is enabling customers to pursue new OpEx consumption models that do not require large up-front purchases.

 During this Power Hour, Vele Galovski will:
•        Share industry trends from TSIA’s IE 40, Technology & Service 50, and HT 20 indices•        Discuss the six megatrends fueling the digital transformation and their impact on OEM’s
•        Introduce TSIA’s new healthcare technology and industrial equipment benchmarking peer groups
•        How the digital transformation is impacting enterprise IT, industrial equipment, and healthcare technology companies based on TSIA’s new vertical industry peer groups•        Present practical next steps based on where your industry and company are in the transformation

Presented By:

Vele Galovski

VP, Field Services Research, TSIA

Publish Date: May 7, 2019

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