18 Jun 2019 addition to changes in customer expectations and examples of servitization in action across various sectors including automotive, healthcare,

Servitization describes the addition of services to manufacturers' core product offerings to create additional customer value. This study aims to identify the key themes and research priorities in this body of literature over thirteen years from 2005 and 2017, based on four major research streams (general management, marketing, operations, and service management).

Netflix and Spotify are probably the most well-known example of this, delivering media as a service, rather than customers buying the CDs, DVDs et cetera that produce those outcomes. A great example of servitization in action is Rolls-Royce’s TotalCare airplane engine program. Customers pay a set amount of money based on the number of hours the airplane is flown. In return, Rolls-Royce will repair, replace broken parts, modify and monitor the engine remotely. Current examples of innovations in this quadrant are renewable energy, data-driven healthcare, mobility (including self-driving cars), Google Maps rapidly pushing away TomTom, and tachographs gradually being replaced by cloud-based applications. Industry Sector Thoughts and Real Examples Life Sciences.

The first, and classic, example is Rolls-Royce selling "power-by-the-hour". Instead of selling aero engines, Rolls-Royce now contracts with many of its customers for "power-by-the-hour". There are even examples of B2C servitization. Apple moved from fighting legal battles, protecting its innovations from cheaper ‘me too’ offerings, to setting up user friendly Apple stores designed to offer lots of ‘hands on’ experience and helpful advice from assistants who are all Apple enthusiasts.

Servitization is a process of business model and organisational transformation, and implicitly is targeted at manufacturers who currently focus their business on products and production. Icons in this world are companies such as Rolls-Royce Aerospace with Power-by-the-hour, Xerox with document management, and Alstom with Train-life services. In its simplest terms, servitization refers to industries using their products to sell “outcome as a service” rather than a one-off sale.

Also, the servitization levels the seasonality of the product and increases life cycles of the complex products, examples of which one can see in the aircraft industry, whereby companies stop focusing on the pure product delivery but start introducing maintenance and other aftermarket activities.

To make the value of servitization even clearer, let’s examine three concrete case studies where manufacturers successfully added services to their existing businesses. 1. Bristol Siddeley / Rolls Royce Back in the 1960s, Bristol Siddeley implemented one of the earliest known servitization plans for their Viper engines.

Examples of questions that could be asked to help you reflect are: Servitization of manufacturing isn’t just a trendy buzzword – it is one of the most powerful ways to leverage customer relationships into a profitable field service offering, long-term loyalty, and expanding business. Take company “X” for example. 2019-04-15 · The servitization businesses processes must be changed to integrate these new technologies. Within this article the following topics will be addressed; 1.

So how can you help that customer to prevent, or 2 Jun 2020 Servitization – the cultural change in manufacturing companies.
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2019-11-01 · Servitization describes the addition of services to manufacturers' core product offerings to create additional customer value.

There are even examples of B2C servitization. Apple moved from fighting legal battles, protecting its innovations from cheaper ‘me too’ offerings, to setting up user friendly Apple stores designed to offer lots of ‘hands on’ experience and helpful advice from assistants who are all Apple enthusiasts.
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7 Jan 2020 Servitization at a high maturity level provides a vastly improved user experience while increasing the OEM's revenue and margin.

Examples of servitization. To make the value of servitization even clearer, let’s examine three concrete case studies where manufacturers successfully added services to their existing businesses. 1. Bristol Siddeley / Rolls Royce. Back in the 1960s, Bristol Siddeley implemented one of the earliest known servitization plans for their Viper engines. Offering services has now turned into a conscious and explicit strategy for many manufacturers with the provision of product-centric services becoming a main differentiating factor – this has become known as the servitization of manufacturing. The quoted classic iconic examples being Rolls-Royce Aerospace, Xerox, and Caterpillar.