Increasing Value Capture by Enhancing Manufacturer Commitment—Managing the Servitization Process

Abstract

The interest in servitization has grown among manufacturers worldwide. Manufacturers recognize that shifting from a product to a service focus offers them opportunities to expand their competitive positioning and address key sustainability objectives. In this paper we share several key findings from the industrial servitization research. Specifically, we provide a summary of the core motivations for servitization and outline the stages manufacturers commonly go through in their transformation towards becoming effective providers of advanced services. We outline the importance of developing a comprehensive performance measurement system to manage and align the progress of the various initiatives that form part of the transformation process. We also describe the critical role of digital technologies in the development and delivery of service value propositions. Our paper concludes with a summary of our key learnings regarding manufacturer servitization.

A QFD‐based approach for the development of smart product‐service systems

“…The shift from the traditional production system, based on the provision of physical goods, to the offer of integrated solutions that combine physical goods and services, where usually the ownership of the former is retained by the manufacturer/provider, is usually named servitization process. 52 Such a change has been characterized by the increased opportunity of integrating the so-called information and communications technology (ICT) tools with traditional products to achieve smart connected ones. 53 At the system level, as mentioned earlier, these smart products and service systems are combined and connected to allow new system functionalities, 54 capable of better satisfying customer needs.…”

Artificial Intelligence for the Management of Servitization 5.0

“…A.I. can help enterprises transform their business models into an outcome based Everything as a Service (XaaS) model by providing advanced health monitoring and predictive maintenance services [70]. A.I.…”

Synthesizing three decades of digital servitization: a systematic literature review and conceptual framework proposal

“…In this process, a demand for specific organizational and technological capabilities is identified. Coreynen et al (2017) and Schroeder et al (2022) have pinpointed the importance of organizational structure and technological capabilities, particularly in the context of digitalization, as key factors for a successful transition to digital servitization (Parida et al 2014;Kanninen et al 2017).…”

“…In sum, the transition from traditional servitization to digital servitization, through the deployment of Smart PSS, marks a critical shift in value creation and sustaining customer loyalty, propelled by Industry 4.0 innovations (Vandermerwe and Rada 1988;Frank et al 2019;Pinillos et al 2022;Raddats et al 2022;Schroeder et al 2022;Chen et al 2023;Martín-Peña et al 2023). Realizing the potential of digital servitization demands an understanding of technological capabilities, fostering innovation, and market adaptability (Kohtamäki et al 2019b;Zhang et al 2023).…”