PARADIGMIX™ PROFILE
The EaaS (Equipment as a Service) business model allows a manufacturing company, against payment of an all-inclusive fee, to be able to use a machine.
The market, which is growing rapidly worldwide, sees manufacturers (OEMs), lenders (banks, funds and leasing companies) and insurance companies as players.
The EaaS (Equipment as a Service) market has an estimated value of $131 billion in 2025, with a CAGR of 35 percent (source: IoT Analytics), and Bain & Company's Global Machinery & Equipment Report indicates that the value of the industry will grow from €275 billion to €435 billion in 2030 and that OEM margins will grow by 20-30 percent.
The EaaS model is intrinsically "Capital Intensive" and this implies that it is necessary to raise the level of transparency between Producers and Lenders, through the sharing of methodologies and indicators that allow both parties to monitor the performance of service contracts.
In this scenario, PARADIGMIX™ Srl positions itself as a management consultancy company which, through a patented Risk and Performance solution, allows you to define and manage the risks deriving from the dynamics of the events inherent in a service contract stipulated between the Manufacturer (OEM) of industrial machinery and End User Customer (Manufacturing Company).
PARADIGMIX™has developed a unique and innovative solution, aimed at providing tools for creating and managing service contracts, based on two cornerstones:
1. A solid Risk-based methodology for determining and managing the PRICING of the service contract, through a reasoned and aware definition of risk/return objectives.
2. A service contract risk and performance control system, based on the development, from time to time, of a patented behavioral SCORING, designed to determine, by integrating usual credit data with Alternative Data, the state of health of the contract of service, providing a series of quantitative indicators.
THE MAIN AREAS TO BE ADDRESSED AND MANAGED ARE
Connectivity
The machinery must be connected to the network , so that it can be remotely monitored, on a continuous basis, in accordance with the parameters shared in the contract; risk scenarios can be configured and mitigated by appropriate insurance solutions
Organization
The Manufacturer grants in use the machinery, against a medium-term contractual horizon (not less than 36 months). The services provided and related to the machinery (such as: maintenance and spare parts, machinery replacement and upgrade) are regulated, in terms of SLAs and KPIs, in the service contract and must be supported by an adequate organizational model.
Finance
The Eaas model is inherently "Capital Intensive," and the Risk & Performance Management system determines and regulates the processes of credit appraisal, granting, pricing, and management through the production of appropriate indicators to represent the track record of the service contract, for the purpose of proper determination of credit bankability.
ESG
The pricing of the service fee must incorporate the risk elements related to the reputational impact of the machinery, throughout its physical life cycle.
BUSINESS MODELEaaS
These areas represent the supporting pillars for the adoption of the EaaS business model and can now be fully managed and harmonized, throughout the machinery lifecycle, through the patented PARADIGMIX™ scoring model, which enables a concise and immediate representation of the performance track record of the service contract and can, as a result, allow the use of the credits arising from it, as collateral to secure debt instruments, for example ESG-compliant financial asset classes aimed at
monetizing the credits created through EaaS.
In addition, PARADIGMIX™ solution supports the aspects of Mandatory Compliance with regard to the Sustainability Reporting in accordance with the European Sustainability Report Standards (ESRS), in particular according to the SDG Goal 9 (Industry, Innovation and Infrastructure), the achievement of which implies the adoption of business models such as Remanufacturing and Digital Servitization.
The monitoring and scoring calculation of PARADIGMIX™ also allows to support the issue of the collateral and the early, ongoing assessment of its adequacy in terms of value and state of use of the machinery, in the context of credits granted against the registration of a non-possessory pledge (guarantee introduced in Italy by Article 1 of Decree- Law No. 59 of May 3, 2016, for the benefit of entrepreneurs registered in the Business of Companies , in order to facilitate their access to credit).
