The challenges of servitization

Our partners in industry experience a lot of challenges along their route to transforming their businesses to compete through services. Sometimes they can feel like they’re on their own, trying to single-handedly forge a path to significant organisational change, and wondering whether anyone out there is having as much difficulty doing so as they are. […]

The importance of value in services business models

In the context of business model, the most prevalent component is related to the concept of value (Zott et al., 2011). However, a company cannot create value on its own; value is co-created through exchange (Gray and Vander Wal, 2014). Companies can only develop offering(s) – value proposition – but their customers must accept, implement, […]

When BINGO meets servitization

By Cindy Elliott As I dive back into the wonderful world of servitization, in the past two weeks I was able to attend three strategic industry events – Field Service Medical (Berlin),Product Innovation (Munich) and World Chief Services Officer Summit (London) – that were attended by Product and Service Leaders from global manufacturers. These conferences […]

Made to Serve: Manufacturing business models for services

Over the past year I’ve spent a lot of time at industry conferences and roundtables, spreading the word about servitization and advanced services and talking to business leaders about their challenges in trying to get traction for these initiatives in their companies. One of the things I often hear they are struggling with is the […]

Being radical just to stand still

By Des Evans I often say it took us (MAN Truck and Bus UK) ten years to become an overnight success. Changing the business model was a huge transformation for my team and me to lead, but having seen sales of trucks across the industry reduce by 50% in the previous 40 years, we knew […]

Is servitization relevant to my small business?

Is servitization relevant to my organisation? Manufacturers ask this question having grasped the concept of servitization, and need it addressed before they will consider transform their focus from products to services. In this article, we report on the relevance of servitization to manufacturing enterprises big and small, and the impact this is having on these […]

Growth and sustainability: The benefits of servitization

Ask the average person on the street what a manufacturer does and they will probably say it makes ‘things’ and sells them. But is this really all that manufacturers do and is it sufficient to be just focused on products? What about services? I think that services are an important stream of revenue that is […]

The many cloaks of servitization

There is a growing recognition in the manufacturing world that a sustainable future for the industry, in developed economies at least, lies in moving away from concentrating efforts on products and production and toward a services focus. The terminologies used globally for this development vary; in Germany researchers, policy makers, and industry leaders are engaged […]

Leading examples of servitization

Manufacturing and service industries are often seen as largely independent. Yet manufacturers can base their competitive strategies on services, and the process through which this is achieved is commonly known as servitization. Servitization is a process of business model and organisational transformation, and implicitly is targeted at manufacturers who currently focus their business on products […]