Service innovation, in the form of Servitization, is the future of B2B OEM manufacturing companies.
First, let us define the term servitization, which has been used since 1988. That said, the definition of Servitization has changed frequently since it was first used.
Here are three of the most important definitions:
- In 2009, the folks at Cranfield University defined Servitization as “the innovation of organization’s capabilities and processes to better create mutual value through a shift from selling product to selling Product-Service Systems (PSS), i.e., Integrated offerings of products and services.”
- In 2013, a new concept was introduced into the servitization discussion: service infusion can be defined as “the process whereby the relative importance of service offerings to a company increases.” In this definition, the services are not necessarily integrated with the product offerings.
- Dr. Tim Baines and others at Aston University have coalesced around this simple definition: Servitization is “a process of building revenue streams for manufacturers from services.”
This article appeared in three parts on Thomas Insights in mid-November 2020. To read the three parts,s click each link:
- Part 1 – If You’re Not Yet Accelerating Your Servitization Journey as a B2B OEM, Start Now Before It’s Too Late [Part 1]
- Part 2 – Why B2B OEMs Should Start or Accelerate Their Servitization Journey Now [Part 2]
- Part 3 – Follow This Roadmap to Start Your Servitization Journey [Part 3]
To read more about Servitization, click here. Another helpful article is Solutions or Value Creation – Some Say Po-tah-to, But I Say Potato.
About Middlesex Consulting
Middlesex Consulting is an experienced team of professionals with the primary goal of helping capital equipment companies create more value for their clients and stakeholders. Middlesex Consulting continues to provide superior solutions to meet the needs of its clients by focusing on our strengths in Services, Manufacturing, Customer Experience, and Engineering. If you want to learn more about how we can help your organization create more value for your customers, please get in touch with us or check out some free articles and white papers here.
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