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0. Introduction to 'Navigating Risk in Equipment-as-a-Service' Series

Putting the Spotlight on Asset Risks in the EaaS Model

The leap from traditional product sales to offering assets in an equipment-based servitization model, herein Equipment-as-a-Service (EaaS) model, is significant, if not transformative, for Original Equipment Manufacturers (OEMs). This paradigm shift implicates OEMs in a new realm of asset risks, an area that has remained relatively uncharted within their operational experience. Unfortunately, the discourse surrounding EaaS has remained somewhat lopsided, with asset risks often overshadowed by discussions focused primarily on billing and revenue considerations.

However, acknowledging and understanding these asset risks is not just a matter of balancing the conversation; it's the cornerstone of creating a resilient EaaS model. Grasping these risks leads to more precise pricing strategies for EaaS offerings and provides a window into why ecosystem partners price their risk assumption services as they do. This understanding fosters more informed decision-making, providing a solid foundation for a robust and sustainable EaaS model.


“For the management sector, risk minimization represents the most important added value of EaaS (agreement of 89.5%)”

Source: Equipment-as-a-Service Market Study 2021 - Prerequisites, barriers and success factors for EaaS, Prof. Dr.-Ing. Matthias Schlipf & Prof. h.c. Dr. Uwe Seebacher (MBA), 2021


One of the key benefits inherent in the Equipment-as-a-Service (EaaS) model for customers is the mitigation of risk. However, the burden of risks often shifts back to the service provider, necessitating their recognition, understanding, and effective management hereof.

The Imperative of Risk Management in EaaS

Risk management is not just an essential part of the EaaS model; it's a vital component of any successful business venture. An inadequate grasp of the various risks associated with EaaS could lead to severe financial consequences, tarnish brand reputation, and even threaten the viability of the business. This series aims to shed light on these risks, offering insights and strategies to navigate the turbulent waters of EaaS risk management.

Risks Not Covered in This Series

While this series offers a deep dive into the realm of asset risks in the EaaS model, it's essential to note the existence of other risk territories yet to be explored. These risks are equally important and vary depending on the specific servitization model being used.

For instance, the use of a cost savings sharing model introduces energy price fluctuations as a significant risk. The inclusion of consumables in EaaS offerings brings the volatility of commodity prices into the picture. Beyond these, risks such as operational hazards, cybersecurity threats, market adoption risks, and challenges associated with business model transformation, technology integration, and establishment of new partnerships lurk in the landscape of EaaS.

This series may not venture into these territories, but they remain crucial areas to consider in the transition to, and operation, within the EaaS model. Future explorations may delve into these areas, providing a broader perspective of risk management in the EaaS paradigm.

Glimpses of the Journey Ahead: Overview of the Series

This series provides a roadmap to navigating asset risks in the EaaS model. Each post offers a deep dive into a different facet of risk management in EaaS, focusing primarily on three representative types of asset risks: residual value risk, asset utilisation risk, and obsolescence risk.

Each risk type will be explored through a five-part structure:

  • Definition: What is the risk, and how does it manifest in the EaaS model?

  • Driver: What factors contribute to or exacerbate this risk?

  • Impact: What are the potential consequences of this risk on OEMs and their EaaS offerings?

  • Strategies for Mitigation: How can OEMs manage and mitigate this risk effectively?

  • Case Example: A real-world instance where the risk has been successfully navigated or managed.

In addition to these, one post explores the intricate interplay between the above risks, shedding light on how they interact and influence each other in the EaaS context. Another post delves into the strategies of risk transfer, risk sharing, and risk exploitation, providing insights into how OEMs can collaborate with ecosystem partners to manage EaaS risks effectively.

This comprehensive approach is designed to provide you with a well-rounded understanding of asset risks in the EaaS model, equipping you with the knowledge and strategies required to navigate this landscape successfully. However, it's important to note that the landscape of asset risks, and risks within EaaS in general, is vast and complex, extending beyond what can be covered in this series. Every product, industry, and market presents a unique set of challenges and risks. Therefore, we at are more than interested in sitting down with you to create a comprehensive risk picture tailored specifically to your unique circumstances.

Your Role in This Journey

As we embark on this journey of exploring asset risks in the EaaS model, you are not merely a spectator but an active participant. Your queries, feedback, and shared experiences will not only enrich the discourse but also provide valuable, real-world insights. We encourage you to actively engage with the content, ask probing questions, share your personal experiences, and offer your perspectives.

The Promise

We acknowledge the paramount importance of understanding these risks for a successful transition and seamless operation within this model. We also recognize that the landscape of asset risks and EaaS risks, in general, is vast and complex, impossible to be exhaustively covered in this series. That's where our dedication to working with you comes in. We are eager to sit down with you to create a comprehensive risk picture tailored to your unique product, industry, and market.


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