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Unleashing the Power of Installed Base Data: Industrility’s Solution to True Total Cost of Ownership

In today’s fast-paced industrial landscape, businesses are constantly seeking ways to optimize their operations and improve efficiency. One critical aspect often overlooked is understanding the true total cost of ownership (TCO) of equipment. TCO goes beyond the initial purchase price, encompassing all costs associated with the entire lifecycle of the equipment. In this blog post, we’ll delve into the significance of TCO, the components it includes, and how Industrility can empower your organization to unlock the installed base data and streamline the management of lifecycle costs.

Calculating TCO

Understanding TCO

TCO is a comprehensive approach to evaluating the financial impact of owning and operating equipment throughout its entire lifespan. While the purchase price is a significant factor, TCO considers various other elements, including:

  • Cost of Acquisition (A) includes the cost of engineering, procurement, equipment, auxiliary equipment, inspections, and documentation.
  • Cost of Commissioning (C) includes transportation, construction, testing, and training
  • Cost of Operation (O) includes energy consumption, in-house crew, facility costs, and handling materials.
  • Cost of Maintenance (M) includes maintenance personnel, testing tools, spare parts, and repair costs, sometimes includes upgrades, modernization or remanufacturing
  • Cost of Production (P) includes production losses, downtime costs, quality control costs, environmental costs, and redundancy costs.
  • Cost of Removal and Disposal (R) includes the cost of removing and disposing of the asset, minus any salvage/recycle value.

Why TCO Matters

Understanding Lifecycle Costs (LCC) and its relation to TCO

LCC takes a big-picture view of equipment ownership, considering all the costs associated with it throughout its entire lifespan. While there are various ways to calculate Lifecycle costs (LCC), Industrility has created a model that helps relates LCC to TCO. LCC might involve more detailed cost breakdowns throughout the lifecycle, less the cost of operations such as energy/fuel consumption, while TCO may provide a more general picture of ownership costs.


Why LCC Matters

Introducing the Lifecycle App

To address the above concerns for the manufacturers, so that they can provide the right visibility to their owners and operators, we have built the Lifecycle app. Lifecycle App is one of the several apps in the Industrility’s app platform that helps manufacturers track lifecycle of an asset as well as the overall Installed base using lifecycle events. Industrility’s Data Ingestion Engine, powered by OpenAI LLMs, carefully and intelligently extracts lifecycle related information (cost, timeline, asset serial number, location etc.) from variety of data sources (such as invoices, service technician report, CSRs, spare parts catalog) and hydrates the digital twin of the asset. It collects and connects to various sources to build the installed base map for the manufacturer throughout the various phases and stages of the equipment lifecycle. By curating and categorizing these lifecycle events, the lifecycle app provides detailed visibility of the TCO and LCC cost of each asset over its useful life and overall Installed Base.

Calculate your machinery's TCO and LCC Using The Lifecycle app

By understanding the intricacies of TCO and LCC, manufacturers and owners alike can make data-driven decisions across each phase and stage. These phases and stages are configured by equipment model, model family and business model (product-only, product-service, product-leased and as-a-service)

The Lifecycle app tracks overall installed base lifecycle (which asset is at what stage and what phase) and Individual asset’s costs throughout its lifecycle, categorizes them into CapEx and OpEx, providing clear view of overall aftermarket potential (or lost aftermarket revenue). Here’s how Lifecycle App can help:

  1. Centralized Data Management: Industrility aggregates data from various sources, creating a centralized hub for all your equipment information.
  2. Proactive Maintenance: Anticipate maintenance needs and potential downtime, allowing for proactive decision-making and cost-saving measures.
  3. Customized Reporting: Generate detailed TCO reports tailored to your business needs, facilitating transparent communication and strategic planning.
  4. Lifecycle Tracking: Industrility tracks the entire lifecycle of your equipment, ensuring you have a comprehensive understanding of its costs from acquisition to disposal.

This unlocks a range of new possibilities:


In the competitive landscape of the industrial sector, unlocking the installed base data and understanding the true total cost of ownership is a game-changer. Industrility empowers businesses to make informed decisions, optimize operations, and ultimately enhance their bottom line. Embrace the future of equipment management with Industrility and take control of your TCO and LCC today.

— Jinesh

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