Servitization

Servitization means augmenting manufactured products by services to create a so-called product-service system. This may range from traditional add-ons such as maintenance up to completely replacing the asset sale by a service contract. 

Motivation

Servitization promises several benefits to manufacturing companies, including stronger customer relationships, more stable revenue and exclusion of competitors. However, servitization may require a significant change to the company’s business model and overcoming a large amount of customer reservations.

Objectives

The seminar is aimed at business development managers and business unit leaders. Its objective is to provide a fast and in-depth introduction to the concept of servitization. The participants understand the benefits that servitization can provide and the business challenges that it creates, and they can thereby can better decide in what form servitization might be an appropriate innovation strategy for their organizations.

Summary

In the seminar, we cover the following topics:

  • What is servitization?
  • What are the benefits to both supplier and customer?
  • When is servitization an appropriate strategy?
  • Industry examples
  • Internal and external challenges
  • Discovering servitization opportunities