Industrial Value Innovation Matrix
From Traditional Product to Sustained Predictability
How to get out of the price war?
FV helps evolve from isolated deliveries to performance, recurrence, and applied intelligence.
Q1 - Traditional Product
Efficiency without sustainability. This is where commoditization begins and where most of the industry operates.
Main Features
Low required aptitude
One-time sale (Transactional)
No embedded intelligence
Subject to price wars
Diagnostic
Many companies believe they are at higher levels but operate as disguised Q1 ('90% of companies'). The focus is purely on the physical product delivered to the customer.
Q2 - Product as a Service
Focus on recurrence. Performance-based model with local operational aptitude.
What is delivered
Equipment by subscription
Guaranteed use and availability
Maintenance + Operation included
Challenges
Represents the biggest challenge for the industrial seller: the transition from product sales mentality to service sales and long-term contracts.
Q3 - Service as a Product
Embedded Intelligence. Scalable model via intelligence and less dependent on direct human effort.
Differentials
Distributed technical aptitude
Intelligence embedded in the product
Integrated added value
Context
This model is more adherent to current tax rules and transforms the service into a packaged 'product', ensuring scale and performance.
Q4 - Sustained Predictability
The Future of Industry. Combination of previous models with high governance.
Advanced Level
Systemic organizational aptitude
Advanced services with anticipated risks
Data-driven decisions
Requirements
Model applicable to companies with mature governance and a long-term contract vision. Focuses on sustaining results and anticipating problems.