- SFS whitepaper identifies innovative financing approaches for technology investment
- Solutions can be customised to support highly specific technology applications
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Technological developments increasingly focus on digitalisation of processes
The paper notes that an increasing range of tailored financing methods is available on the market to support equipment, technology and software acquisitions and technology upgrades. These include Total cost of ownership (TCO) financing, performance-based financing, energy efficient technology financing, multiple jurisdiction financing and solutions to enable ongoing investment with built-in points of refreshment. Such financing solutions are increasingly obtained from specialist financiers who command technological expertise and profound knowledge of specific industries. Solutions can therefore be customised to support very specific technology applications and customer requirements.
Financing is becoming an increasingly important investment-enabler as organisations seek to harness technological innovations to enhance effectiveness. In the manufacturing industry, technological innovations in drives, automation, additive manufacturing, and software solutions are speeding up product and plant development, resulting in greater productivity, flexibility, resource efficiency and shorter time to market. For instance, manufacturing simulation systems are capable of linking real and virtual environments to swiftly and accurately test the impact of possible production line changes. Additive manufacturing, a production process in which components are created layer by layer on the basis of digital 3D design data, helps rapid production of precision components on-site. Digital manufacturing is also rapidly becoming an integral part of product lifecycle management (PLM), playing critical roles in optimising entire product lifecycles for market fit, reliability and profitability. Against a background of accelerating technological advances, the availability of flexible and appropriate funding is a vital component in helping manufacturers fully embrace digitalisation.
“We are seeing a rising demand for intelligent financing techniques from manufacturing companies,” commented Brian Foster, Head of Industry Finance at SFS in the UK. “Increasing technology sophistication has driven a need for tailored financing methods that can address specific requirements such as financing non-productive setup periods or across multiple countries.”
The report also highlights the new mindset of finance managers in funding the investment of new technologies. These professionals are focusing on a set of desired outcomes, including improved performance and productivity, cost savings and/or return-on-investment, before appraising the best financing method with which to achieve their business goals.
For further information on the Financial Services Division, please see www.siemens.com/finance
To view the whitepaper, click here.
