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Servitization
The Service Revolution
Advances of technologies mean that manufacturers have the unprecedented opportunity to understand their end customers better and increase revenue streams by selling services alongside physical products.
- Defining servitization.
- Spectrum of servitization.
- 4-step maturity model.
What is servitization?
Servitization is the process when original equipment manufacturers (OEMs) evolve business models from product makers to product-as-a-service providers. Selling products-as-a-service is a value proposition offered to customers where they are promised life-long support for periodical, monthly or yearly or pay-per-use, subscriptions stated.
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CapEx to OpEx.
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Product-as-a-service.
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Outcome-based subscriptions.
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New business models.
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New revenue streams.
What does servitization mean for manufacturers?
Manufacturers pursuing servitization must proceed at the right pace, preserving core revenues in their journey to offering more outcome-based services that fit their unique value. There are typically several stages companies go through in their evolutionary path to establish servitization elements in their service portfolio.
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Stage 1: Parts sales supported by parts availability & pricing.
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Stage 2: Time or cycle-based service contracts.
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Stage 3: Outcome-based service contracts.
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Stage 4: Everything as a Service (EaaS).
How does Syncron help?
The Syncron 4-Step Maturity Model provides a path to enable manufacturers’ shift to delivering Products as Services while simultaneously optimizing the performance of current break-fix service models.
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Optimize break-fix simultaneously.
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Servitization maturity model.
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Customized recommendations.
