Relayr is much more than just a tech or engineering firm. All the engineering and tech know-how in the world is useless unless a business, small or large, is willing to take a risk and invest in digital transformation or explore new business models. And so, the beginning of any successful business partnership is to create trust and there is no better way to secure trust for what can be a substantial investment of time, resources and capital than to insure each of the steps in the transformation process – even the long-term business outcomes.
But as we all know, insurance is not just a matter of building trust. Insuring the initial implementation stages and business outcomes is intimately linked with securing funding for the planned transformation in the first place. Financing change can often be as challenging as the change itself. Banks and financial institutions, if they are even willing to finance in the first place, are more likely to invest in traditional CAPEX-inspired investments in new machinery rather than exploring digital transformation as a means to achieving new goals based on OPEX models.
This is exactly why relayr has integrated Financing and Insurance elements, along with Technology and Delivery, into its transformation packages. Insurance is one of relayr’s four key pillars of transformation. Working closely with MUNICH RE / HSB, relayr provides 4 different insurance instruments to assure each stage of the transformation journey.
Be it in vast industrial complexes or in a warehouse with a few simple production lines, the initial stages of any new process of transformation requires a large degree of trust in the new partner. It also requires belief in any promised outcomes. The Completion Warranty is an insurance instrument which can instantly create the encouragement needed to quickly move forward with a project as it insures the initial orchestration and implementation of the transformation process. The warranty is a boon to businesses to activate their partnership with relayr and encourages partners to begin financing the solution design and project set-up costs.
This industry-leading ‘money-back’ guarantee is not tied to the planned business outcomes but simply covers the implementation of the deliverables laid out in the first statements of work. Initial financing can cover up to 25% of the full project cost, so an insurance instrument which offers a full money back guarantee on the orchestration and implementation phase can be key to securing support from anxious boards, investors and managers unsure about the transformation process under discussion.
Although retrofitting to industrial hardware entails, for the most part, wireless sensors and digital monitoring, the process itself could cause a machine to temporarily malfunction or production lines to breakdown during the implementation phase (phase 1) or the post- transformation phase (phase 2). Retro-fitting can also invalidate previous warranties on machines or production lines. relayr has developed Retrofit Warranties to cover each of these two phases. These warranties can cover any and all equipment breakdown caused during phase 1 of the retrofit process itself or any malfunctions or stoppages caused by the retrofit process during phase 2.
With the possibility of insuring the initial planning implementation and any hardware during the retrofitting process, relayr can also tailor insurance packages and provide warranties for any of the desired outcomes that were proposed at the beginning. For hardware IIoT solutions this can be insurance for the projected Overall Equipment Effectiveness, cost savings due to reduced down-time, energy-saving or the implementation of smart predictive maintenance systems.
For XaaS IIoT solutions, a Service Level Warranty can be tied to the success of the implementati on of a new model and its initial effectiveness. Changing an existing business model to an X-as-a-Service comes with unexpected challenges – not to mention a little uncertainty. For example, businesses moving to XaaS or EaaS models develop new responsibilities toward the equipment they supply to their customers. A Service Level Warranty can be built into any Service Level Agreement in order to de-risk the business model transformation as it covers the business against any unexpected claims coming from ‘new’ end-customers.
There is no special process or risk assessment required on the partner’s side for the initial Completion Warranty. relayr uses industry standard insurance forms and processes. They convey the project risk and scope to their insurance partners at MUNICH RE / HSB who calculate the CLIP cost and provide the relevant liability cover. Relayr’s unique experience and track record in this field means that a Completion Warranty package can be drawn up in as little as two weeks.
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