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It’s inevitable that selling products as services will become a major component of OEMs’ businesses over the next decade.

Aly Pinder • IDC

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.
  • Syncron CapEx to OpEx.
  • Syncron Product-as-a-service.
  • Syncron Outcome-based subscriptions.
  • Syncron New business models.
  • Syncron New revenue streams.
What is servitization?

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.
  • Syncron Stage 1: Parts sales supported by parts availability & pricing.
  • Syncron Stage 2: Time or cycle-based service contracts.
  • Syncron Stage 3: Outcome-based service contracts.
  • Syncron Stage 4: Everything as a Service (EaaS).
What does servitization mean for manufacturers?

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.
  • Syncron Optimize break-fix simultaneously.
  • Syncron Servitization maturity model.
  • Syncron Customized recommendations.
How does Syncron help?

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