BEFORE — Sell the engine, profit from spares

@thedataandaiguy

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Selling · SaaS › Other SaaS

Rolls-Royce TotalCare

Why it worked

The video explains a complex business model ('servitization') using clear diagrams and relatable examples (Otis, Michelin), making it educational and engaging. The contrast between the traditional and modern approach highlights the innovation and benefits of the TotalCare program.

Summary

The video explains Rolls-Royce's TotalCare program, where they rent jet engines to airlines and are paid per flight hour. This model incentivizes reliability and proactive maintenance, contrasting with the traditional model of selling engines and profiting from spare parts.

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Original caption

Rolls-Royce rents its jet engines by the flight hour, not by the unit. Each Trent engine carries around 100 sensors streaming data to their Aircraft Availability Centre in Derby. The model is called TotalCare, and it's a textbook case of servitization. #techtok #hereswhatyouneedtoknow #rollsroyce #servitization #LearnOnTikTok