Servitization and the Global Economy: The Future of Manufacturing
Now 1/3 of the world’s 7.7 billion people were born after 2001. They are all equipped with a powerful command-and-control device—a smartphone—and are willing to interact digitally with everyone and everything, from cars to homes, from transactions to services.
Customer expectations of both the buying and servicing experience has changed greatly and they don’t value ownership as a concept in the same way previous generations do. Instead, they want on-demand ‘access’ to products and they’re willing to pay a premium to have access to products when they need them and be able to turn them off when they don’t.
Globally, the ‘subscription’ economy is being ushered in with great velocity by this massive demographic shift and for manufactures this is called servitization. For those who prepare now there will be great reward including insuring against trade wars and capitalizing on new revenue streams. Hear Professor Carlo Alberto Carnevale-Maffé paint a vision of why OEM’s must prepare now for selling products-as-a-service to remain relevant and profitable in this new global economy.