Head of Americas for the Commercial Finance business unit of Siemens Financial Services
The financing solutions of tomorrow will improve the connectivity of information across industries and will result in improved performance management of assets, monetized services that will drive improved outcomes and a ‘smarter’, more digitalized approach to business.
Today’s equipment and leasing market finds itself entering a new era. According to a recent report titled The Digitalization Productivity Bonus, more firms are moving toward financing business outcomes rather than financing a single technology investment directly. With the online convergence of the real and virtual worlds – through the Internet of Things (IoT) – and a digital transformation overhauling today’s markets – financing models serve as the key to enabling the next generation of equipment and technology. The potential financial value add of organizations adapting to today’s digital environment is estimated to be between 6.3 and 9.8 percent of total annual revenue by 2025. Adapting today’s financing models to support business outcomes can positively impact a variety of vertical markets, such as: connecting the manufacturing floor through enhanced technology, supporting healthcare models through improved data analytics and information management, and driving improved infrastructure through digitalization.
How financial models are adapting in areas including:
With 75 percent of manufacturing firms having fewer than 20 employees, many industrial enterprises require strategic financing options to execute projects successfully. Financial models are focused on enabling outcomes through financing, such as: through the automation of equipment and technology, enabling further production efficiency through retrofit and upgrading of assets and providing operational flexibility through extended payment terms and freeing up working capital to be leveraged for digital skills training.
An estimated $49 trillion will have to be invested in infrastructure projects worldwide between 2016 and 2030 just to keep pace with expected GDP growth rates. As city leaders look to address this massive infrastructure deficit, they will need to find ways to make both city infrastructure – and infrastructure dollars – go the extra mile. And the way to do this is clear: by embracing smarter – or more data-driven – cities. By leveraging digital technology, cities can use data to accurately predict things like transportation usage, electricity requirements, traffic density, power demand, and city emissions – helping cities both manage infrastructure better while making more informed investment decisions. Financing this new digital approach to infrastructure development requires even stronger collaboration between the private and public sectors that will come in the form of managed equipment services and performance contracts that tie outcomes to project expectations.
Today, healthcare organizations must find creative ways to do more with less, and require innovative solutions to keep pace. With overwhelming amounts of data on patients and merging these records online – providers must effectively manage this data and use it to make smarter, more informed decisions. Many are looking to apply digitalization to their business models and advance their healthcare technology, equipment and infrastructure. Financial solutions can enable such projects and provide positive benefits including: the ability to gain additional access to larger patient groups, providing portable medicine for patients through new mobile offered healthcare equipment and improvements in diagnostic imaging technology that improve data connectivity across networks and enable more accurate diagnoses through enhanced scan quality.
Only by projecting the trajectory of these advancing technologies and using “day-after- tomorrow” thinking can we understand how our world is changing, and along with it, customers and the outcomes they seek. Customers don’t care what’s important to us; they care about what’s important to them. And if equipment finance companies can’t innovate fast enough, customers will turn to others who can meet their needs in new ways.
About Gary Amos
Gary Amos is Head of Americas for the Commercial Finance business unit of Siemens Financial Services (SFS). In this role, he is responsible for managing and assessing growth opportunities for the $1 billion commercial finance portfolio, which includes financing for: healthcare, industrial technologies, manufacturing, and software. With global megatrends, such as the Internet of Things (IoT) and digitalization shifting today’s vertical markets – Gary is focused on developing strategies to accelerate equipment and technology financing by positioning financial solutions as an enabler for the automation and growth of next generation digitalized assets. He leads his team with an innovative mindset focused on enabling a digital transformation for financial sales products and processes. He is currently increasing focus on integrating and aligning his team’s service offerings within Siemens’ Divisions to more holistically position financing as a solution alongside the greater Siemens portfolio. Gary joined SFS in 2007 as vice president and national sales manager, tasked with setting strategic direction for SFS’ Industrial Leasing platform. His team structured leases and loans within the industrial sector, with special emphasis on: marine, rail, air, food/beverage and chemical/pharmaceutical products. Prior to joining Siemens, Gary was vice president of business development at GE Commercial Finance, where he managed a national accounts team. He is an active member of the Equipment Leasing and Finance Association (ELFA) and participates in various programs held by The Leasing Foundation based in London. Gary acts as a champion for Industry 4.0 and Digitalization programs for these organizations. He also provides mentoring for various student associations at his alma mater the Pennsylvania State University, where he holds a B.S. in Economics/Business respectively.