Approved by curator
Added: Oct 19, 2022
Last edited: Apr 11, 2023
With the ever-increasing need for capital equipment maintenance, some companies such as Philips rethinks their business by designing for upgradability and software compatibility, hence ensuring advanced maintenance and postponing technical obsolescence.
As is the case for much capital equipment, technological innovation in magnetic resonance imaging (MRI) technology increasingly focuses on the softwarehardware interface, with the image-processing software becoming more advanced. So, with rising scanner complexity, additional services and maintenance are required
This has led the Dutch life-science company Philips to pioneer new revenue models with partners. For instance, by entering into full-service partnerships with several hospitals in the UK, Philips provides equipment and services for a period of 10 years at a monthly fee. This business model incentivises Philips to design for upgradability and software compatibility, ensure advanced maintenance and postpone technical obsolescence.
Using such a strategy allows for the number of machines required to be minimised and lifespans to be extended, which can increase functional value per unit by at least half the original value.
Photo by Tom Claes on Unsplash
Upgrade
capital equipment
obsolescence
long-lasting good