Who are the owners of the assets of the Installed Base of a B2B Industrial OEM?
Who are the Owners of the Assets of the Installed Base of a B2B Industrial OEM?

There is often much discussion regarding the end-users’ demand for products and services that can be mined by a B2B OEM from its Installed Base [IB], but there is little discussion of the requirements of the various owners of the IB.

Here’s a timely post by Ron Giuntini recreated from LinkedIn, where he  provides a different perspective of the IB related to ownership and the lifecycle stages of ownership. Each economic sector employs most, but not all ownership business models, but almost all employ the same lifecycle stages.

So, who is indeed the customer of the OEM? It is often not only the end-user but can also be the owner of the asset.

Here are the 8 Owners of the Assets of the Installed Base of a B2B OEM and their focus of Ownership

#Asset OwnersFocus of Ownership
1Operating Lease Financial Services EntityMaximize balance sheet residual value at the end of the leaseEnsure payments are made throughout the life of the leaseTypically not proactive in overseeing the management of their asset by the end-user
2Machine-as-a-Services [MaaS] Agreement ProviderAssure end-user availability and productivity performance of the assetAffordability of end-user machine access by converting a CapEx

to an OpEx

The business model embraces sustainability
3Daily Rental ProviderTurnover of assets; maximize duration and frequency of usePeriodic planned

replacement when maintenance costs will exceed depreciation

Often also major seller of used machines
4Fractional/Sharing EntityOptimize end-user capacity utilization to amortize fixed


CapEx affordabilityA group of end-users are often the primary owners
5Pooling/Exchange EntityOptimize end-user access to a machine for various periodsContinually improve assets to optimize residual valueLike-Kind Exchanges provide IRS tax benefits
6End-User Loan Financial

Services Provider

Assure that payments are

made by end-user throughout life of loan

Repossession of asset

if payments not provided

Ownership title not

transferred to the end-user until last payment is made

7End-User Title HolderExtract maximum economic value from machine outputsMinimize depreciation

impact upon income statement

A fixed asset account on end-users balance sheet
8Used Machine SellerAcquire at low price and sell at highest priceInventory turnoverOften will improve a machine’s value through  modifications
Who are the Owners of the Assets of the Installed Base of a B2B Industrial OEM?
              Image: The Lifecycle stages of the Ownership of an asset employed in the Installed Base (IB) of a B2B OEM

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