Servitization in Action: Caterpillar

Caterpillar’s machines are often integral to their user’s operations; downtime can mean inconvenience and financial losses. Services provided through its renowned dealer network

therefore aim to deliver whatever it is customers need to ensure uptime – be that data,

advisory support or full time fleet management – while also enabling the customer to operate

their fleet as efficiently and effectively as possible.

In 2005, Caterpillar’s outgoing CEO launched ‘Vision 2020’, its fifteen year enterprise strategy for

growth. A key aspect of the strategy was to work closely with its impressive dealer network to ‘be the global benchmark in delivering integrated business solutions to customers’. Caterpillar and its dealers had to become less product-focused and more customer outcome-focused to deliver such a high standard of solutions.

Caterpillar realised that services needed to be much more standardised among its dealers (e.g. what was included in the service offering, the description and marketing of services, delivery systems and KPIs). As the manufacturer whose name was on the product, it needed to lead this standardisation exercise across its dealer network.

To read about Caterpillar’s transformational change towards services and outcome focused strategies, download the full Case Study