EXECUTIVE SUMMARY

Students of the Institute for Entrepreneurship and Innovation have prepared this report to examine the integration of generative AI (GenAI) into FESTO's digital maintenance management system, Smartenance. The project aims to analyze how GenAI can enhance Smartenance's value and impact its price sensitivity, focusing on customer perceptions and their willingness to pay for these enhancements.

Goal

This project evaluates the added value GenAI brings to Smartenance and its effect on the pricing model. The aim is to understand how GenAI can transform maintenance management by automating tasks and providing customized recommendations, ultimately improving the efficiency and effectiveness of maintenance processes.

Methodology

A structured approach was used, starting with comprehensive secondary research to understand Smartenance's current functionalities and potential GenAI applications. This involved reviewing existing documentation and studies on generative AI.

Primary research followed, involving a detailed survey to assess price sensitivity among Smartenance users and companies in production lines. The survey gathered demographic information and customer preferences regarding AI-enhanced maintenance features. The Van Westendorp Price Sensitivity Meter (PSM) was used to analyze the data, identifying optimal pricing ranges based on consumer perceptions.

Initially, the research team explored secondary sources to build a theoretical foundation. After understanding Smartenance and GenAI capabilities, a survey was conducted targeting current users and production companies. The Van Westendorp Method provided insights into customer value perceptions and acceptable pricing ranges.

Results

The research revealed key insights. Integrating GenAI into Smartenance significantly enhances its features by automating text extraction and creating structured maintenance plans from various documents. GenAI also offers real-time data analysis, predictive maintenance, and expert guidance through AI-powered chatbots, reducing maintenance time and unplanned downtimes.

Additionally, GenAI automates compliance checks, maintains detailed records of maintenance activities, and predicts part replacement needs, avoiding costly disruptions and ensuring smooth machinery operations. An optimal price point for GenAI-enhanced Smartenance was identified.

In conclusion, the report provides strategic recommendations for FESTO to adjust their pricing model, conduct further market research, and explore specific GenAI applications within Smartenance. These steps will help maximize Smartenance's value proposition, making it more attractive and competitive in the market. Integrating GenAI not only improves maintenance efficiency and effectiveness but also aligns with customer value perceptions, ensuring an optimal pricing strategy.

Cooperation Partner

• Festo Vertrieb GmbH & Co. KG
  Festo Campus 1
  73734 Esslingen
  Germany
  festo.com

Contact Person

• Jakob Decker - jacob.decker@festo.com

Student Team

• Alexander Pucher

• Johannes Enzensberger

• Moritz Fischer

• Sebastian Koren-Heuritsch

• Tobias Jakob Winklmayer

Project Manager

• Caroline Fabian

• Shtefi Mladenovska