Asset replacement in the context of Servitization

On the user side, operators of mining assets continuously seek ways to optimise useful life of composite equipment, machinery, and systems that incorporate fourth industrial revolution technologies in the form of advanced materials, artificial intelligence, internet-of-things, industry 4.0 and 5G networks. On the supply side, manufacturers, vendors and suppliers of mining components, spares, equipment, machinery, and systems that incorporate these technologies also seek ways of exploiting globalization 4.0 business models to grow and sustain their respective businesses. The same applies to mining services providers. This article is based on empirical evidence derived from three sources viz: (i) semi-structured interviews, (ii) a survey of practitioners; plus (iii) existing commercial agreements between asset users and suppliers of equipment and maintenance services. The practical implications of decisions to replace technology-laden mining assets in the contexts of servitization, product-to-service transformation, and product-service systems are discussed with the assertion that such decisions are driven by the value ethos, notwithstanding the unprecedented technological developments. Drawing from the empirical evidence, the paper also discusses frameworks that are more relevant to the practicing asset manager seeking pragmatic insights to servitization challenges given the scenarios of the fourth industrial revolution and globalization 4.0.