The industrial sector is under pressure. Political and economic uncertainty is dampening clients’ willingness to invest, while global technological competition is intensifying. As a result, differentiation through traditional product features is becoming increasingly difficult.
At the same time, digitalisation in the industrial sector is accelerating. IoT, software development and data-driven services offer enormous potential. While many companies have already invested millions, return on investment often fails to materialise.
Our Zühlke Industry Talk “subscription-based business models in the industrial sector” (available in German only), held with leading experts from across the sector, highlighted one way forward – adopting subscription-based business models. These models enable a shift away from traditional product sales towards usage-based and outcome-oriented offerings.
Unlock growth with subscription models in manufacturing
The panel featured the following experts, revealing significant variation in maturity levels across the industrial sector:
- Martina Eder, CFO Schrack Seconet AG
- Dr. Tom Schneider, Managing Director TRUMPF Werkzeugmaschinen SE + Co. KG for Research & Development
- Thomas Pühringer, Head of Solution Portfolio Management SKIDATA GmbH
- Kurt Herzog, Vice President Industry 4.0 Primetals Technologies Austria
- Ralf Günthner, Co-Founder Subscription Rebels
- Andreas Pfleger, Business Principal Industry Austria Zühlke
While a few companies have implemented scaled subscription offerings, many are only just beginning this journey. Geographical differences are also evident. Acceptance of subscription models is considerably higher in the United States than in the German-speaking region. So how can the DACH region maintain its competitiveness in an international context? Below is a summary of the key insights shared during the Zühlke Industry Talk:
“Subscription models not only change how we sell – they transform how we develop, deliver, and evolve our products.”
What are the main challenges for industrial companies?
Successfully implementing subscription-based models requires more than technical adaptation. Established industrial firms face wide-ranging structural, technological, and cultural hurdles. The panel agreed that introducing a new pricing model alone is insufficient. A fundamental shift in organisational thinking is required, as subscriptions affect not just the product but the entire sales approach, internal processes, and customer relationships:
- Sales needs a new mindset: traditional sales methods focused on features and one-off transactions are no longer adequate. Consultative sales roles that build customer-centric solutions and foster long-term relationships are essential.
- Internal resistance hampers change: entrenched structures, familiar processes, and proven success models often prevent forward-looking approaches. Transitioning to a more dynamic, iterative model faces cultural resistance.
- Technological complexity is increasing: subscriptions affect the full value chain – from machinery and software to billing. Seamless integration is crucial.
- The customer must also transform: subscription models demand new customer processes, IT systems, and ways of thinking. Successful providers actively support their customers through this transformation.
“The greatest challenge is redesigning the entire sales process and viewing the customer not just as a buyer, but as a long-term partner.”
Industry insights: what are the real success factors?
Despite the challenges, many examples show that change is achievable. Beyond technology, it requires a clear strategic commitment and the right organisational conditions. The success of such initiatives hinges on leadership, team structure, and autonomy. When all relevant departments are involved early and small teams are empowered to operate beyond traditional structures, the chances of building a scalable model increase significantly:
- Strategic anchoring: without support from top management, initiatives will fail. Leadership must actively champion the transformation.
- Small, effective teams: interdisciplinary teams with autonomy and clear mandates tend to outperform larger committees. Nurturing these “green shoots” is vital.
- Early involvement of key departments: IT, sales, product management, legal, and finance must collaborate from the outset to prevent failure due to complexity and siloed structures.
- Iterative development: rather than aiming for a perfect solution, start with an MVP and launch a marketable subscription within 12 to 15 months. Learn, adjust, and scale from there.
“Hardware without software no longer exists – only through continuous software service can we ensure the long-term lifecycle of our systems.”
Industrial leaders agree: subscription is the future
The panellists were clear in their views on the future. Subscription models will not entirely replace traditional sales models overnight, but they are increasingly becoming a key complement and, in many areas, will become the dominant model. In software and cloud solutions, subscriptions are already the norm and the same is likely to hold true for hardware.
Products that must remain connected and regularly updated can rarely be sold profitably through one-off transactions. More and more industrial firms are offering hybrid models, bundling hardware with services and digital features under recurring fees. This shift affects not just the business model, but the entire value chain – from product development to customer engagement.
It is also evident that introducing a subscription model is not a one-off initiative, but a long-term transformation. Organisations must be designed to keep pace with faster development cycles, continuous iteration and increased customer centricity. Those seeking to implement subscriptions successfully must align their business models, processes, and mindset towards continuous learning, agile development, and close collaboration with customers.
“We deliberately chose the hardest path – those who fail, learn, and those who succeed gain a crucial competitive edge.”
The five key learnings from the Zühlke Industry Talks at a glance
To conclude, here is a concise summary of the five core insights from the Zühlke Industry Talk – practical and focused on the most impactful levers for industrial companies:
Subscription is not just a rental model
It’s not simply about providing a product – it involves delivering a comprehensive offering, with new value propositions, deep technological integration, and organisational change.
Sales transformation is essential
Subscription models redefine the provider–user relationship, shifting from one-off sales to long-term partnerships that deliver ongoing value.
The customer must also evolve
Customers must adopt new processes, roles and responsibilities. Providers that actively support this transition build lasting partnerships.
Strategy and organisation must be aligned
Small, focused teams with a clear mission and backing from leadership are key. The entire organisation must embrace more dynamic ways of working.
Cloud-based products are becoming the norm
Software subscriptions are already established. It is time to extend these concepts and adapt internal processes and thinking accordingly. Business models must be designed with this in mind from the outset.
“The transformation to subscription-based models is a radical shift, involving both technological and cultural challenges. We must fundamentally rethink our approach.”
Learning from real-world industrial experience
The high level of engagement and active discussion during the Zühlke Industry Talk made one thing clear: subscription models are highly relevant for industry, offering significant potential but also posing substantial challenges. One key learning is that there is no one-size-fits-all solution. Each company must find its own path, overcome structural hurdles, and establish new ways of thinking both internally and externally.
If you are looking to explore this topic further, our white paper “subscription-based business models in industry” offers detailed insights. The full recording of the Zühlke Industry Talk is also available (in German only), sharing practical input from leading industrial companies.
