Servitization - from products to service
Our latest research is designed to help you develop winning strategies and create sustainable growth in manufacturing through servitization.
Since decades, profit on selling industrial engineering products is declining. Manufacturers are moving away from selling physical products towards providing value-adding services based on their products’ core capabilities. This trend is giving rise to a new type of business model where companies are paid for the output or outcome they deliver for their customers, rather than for the physical products themselves. This is servitization.
We conducted a research among CxO’s of industrial engineering companies in Europe to understand the rationale behind this trend. Do servitized offerings deliver better financial rewards? Do they enhance companies’ competitive position? And what does it take to get servitization right?
The survey showed that 75% of industrial manufacturers expect delivering services to become a significantly bigger part of their business in the next 3-5 years But only 30% of the companies interviewed have a service strategy in place. The average growth margin from services delivered ranges between 15% and 35%.
Building on our research with senior executives in the industry, the report offers:
- Pragmatic and actionable tools you can use to determine your organisations position in the market
- Insights on how to overcome key barriers for servitization
- A list of characteristics and capabilities that your organisation need to deliver growth in revenue and profit based on servitized offerings.
- Lessons from the servitization leaders for proven success
- A strategic framework for servitization go-to market models to support your goals