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Data for subscriptions podcast - Episode #16

Manufacturing’s Digital Transformation: Alfa Laval’s Voyage Towards Subscription-Based Solutions


Andrea Pelizzaro

Andrea Pelizzaro
Connected Services Manager, Alfa Laval


Episode description

Manufacturing’s Digital Transformation: Alfa Laval’s Voyage Towards Subscription-Based Solutions

Andrea Pelizzaro, who leads Alfa Laval’s connected services portfolio, discusses their shift towards subscription-based models and the role of data in this transformation. Andrea highlights their focus on leveraging data and IoT to offer solutions that enhance customer value, reduce downtime, and increase sustainability, particularly in a traditionally conservative industry.

He also touches on sustainability as a key driver in digital transformation, emphasizing reduced emissions and improved machine longevity. The conversation explores the importance of understanding customer needs, effectively conveying solution value, and the metrics used to measure progress in digital transformation.


As you articulate the value for the customers to move from traditional to subscription-based, what is the core value of that?

What we offer is the OEM closeness. So, the separation intelligence or the support to a customer becomes one click away. So, the lead time needed to get up and running again is dramatically reduced compared to having a field service engineer going on-site, for example. And depending on the business model, we would be able to offer a more predictable OpEx, which is, of course, very important for every customer.

Would you say that there is an appealing value for a customer that still wants to retain a “I wanna buy everything, own it, and run the responsibility of it”?

It depends on the customer you are dealing with, because we might have a bigger conglomerate that is geared up to run everything on their own. Or you have a smaller company where they would prefer to have the OEM come into the picture. The beauty of this (subscription-based) solution is that the OEM know-how is something that is always close to the customer and is continuously evolving.

We have talked a lot about the customers. Have you perceived the communication and introduction of subscription services at all being a challenge or have they all just embraced it with open arms?

We had the challenges around the understanding of why they need to move beyond the transactional business. At the end of the day, what you want to secure is to have the business today and the business tomorrow. We call it a service agreement – a framework in which you try to lock the customer into a long-standing relationship by trying to offer as much value as possible, so they keep choosing your company.