Moving to a performance-based service business model will have huge implications for the whole value chain. Its principle is to manage for outcomes—procure performance rather than parts and people. It requires total business process reorientation from services and maintenance through procurement techniques, as well as the IT platform for integration.
support supply chain model
innovation is creating capabilities supporting the next shift toward this performance-based approach. Partnerships in the value chain—sharing of knowledge, process innovations, and technology concepts, as well as the building of agreements, will be bedrock to the success of performance-based business models. The data is housed in too many locations, in too many enterprises, in all level of aggregation, formats, etc., for partnerships not to be essential to performance-driven business models. This