It’s clear that servitization – the transformation from selling products to selling Product-as-a-Service – has made its way into the minds of most manufacturing organizations; however, how far along the journey they’ve advanced will vary greatly from company to company.
Servitization comes with great opportunities but also poses many challenges for a service leader and his/her organization. So, what’s the path to success?
This past February in Frankfurt, Clayton Slagle, Business Value Consultant at Syncron, hosted an exciting workshop on the paradigm-shifting challenge of servitization with a passionate group of more than 20 service and parts leaders from cross-industry manufacturing organizations. Below is a recap of the great discussions that occurred over a two-hour period.
“It’s inevitable: selling products-as-services will become a major component of OEMs’ businesses over the next decade.” - Aly Pinder, IDC
The need for servitization is an inevitable consequence of changing customer expectations coupled with an array of new (and cheap) technological developments. As consumers, we expect continuous real time updates available on our devices, whether it be on the location of a parcel delivery, status of an upcoming flight, or the development to the latest breaking news story. These consumer expectations are taken with us to the workforce. As such, we now have the same expectations in our B2B relationships. And with heightened development in the performance of technology around remote diagnostics, augmented reality, artificial intelligence, gps tracking, ecommerce platforms and many others, the standards of B2C are much more accessible today to the B2B world than just a few years ago.
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