Servitization
This not a term that is often used and if you have found you way here to this page you most likely are well informed what it means… however, for the uninitiated its about how product-centric firms assume a service orientation i.e. going from selling core products (which usually are capital intensive) such trains, buses, aero engines, presses and lathes, commercial trucks, earth-moving equipment… to selling a service orientated customer experience, where the service products supporting the core product and or the customer become an as equally important part if not more of the company’s offer to the market as the core product – i.e. they become service orientated.
A Journey Involving Change
The journey going from “sheet metal” to service provider is not an easy one. The company culture is most likely geared to product development closely linked to the core product. The sales organisation probably feels uncomfortable with the idea of selling service, the management team is not used to intangible products – you can’t touch a service, you don’t own it or you can’t buy it but you can experience it. Take a haircut for example; you can’t own a haircut or a dentist’s visit – much in the same way as you can’t own a service or repair to a machine. How to follow up these new revenues and profits – is your business control organisation geared up for this, what metrics to use? It's all new - for everyone and no-one goes untouched.
How to innovate service products? Where to start, what sort of organisation do I need? Which firm capabilities are required? What about our company culture: where are we today? How to create a spirit of creativity, where mistakes are tolerated, where experimentation is the norm, where a diverse work force is the okay and where an outside in (customer) approach is the better way?
Getting cold feet?
You are not alone!
Unique Competence
Here at SMQC we have a lot or experience and dare we say it we possess a unique competence in “servitization”. If you are interested in learning more we are happy to get involved as this is surely not only a very important step in the development of your company but also a fun journey, where you set the limits…
Our motto: small steps… leading to successful change.
This not a term that is often used and if you have found you way here to this page you most likely are well informed what it means… however, for the uninitiated its about how product-centric firms assume a service orientation i.e. going from selling core products (which usually are capital intensive) such trains, buses, aero engines, presses and lathes, commercial trucks, earth-moving equipment… to selling a service orientated customer experience, where the service products supporting the core product and or the customer become an as equally important part if not more of the company’s offer to the market as the core product – i.e. they become service orientated.
A Journey Involving Change
The journey going from “sheet metal” to service provider is not an easy one. The company culture is most likely geared to product development closely linked to the core product. The sales organisation probably feels uncomfortable with the idea of selling service, the management team is not used to intangible products – you can’t touch a service, you don’t own it or you can’t buy it but you can experience it. Take a haircut for example; you can’t own a haircut or a dentist’s visit – much in the same way as you can’t own a service or repair to a machine. How to follow up these new revenues and profits – is your business control organisation geared up for this, what metrics to use? It's all new - for everyone and no-one goes untouched.
How to innovate service products? Where to start, what sort of organisation do I need? Which firm capabilities are required? What about our company culture: where are we today? How to create a spirit of creativity, where mistakes are tolerated, where experimentation is the norm, where a diverse work force is the okay and where an outside in (customer) approach is the better way?
Getting cold feet?
You are not alone!
Unique Competence
Here at SMQC we have a lot or experience and dare we say it we possess a unique competence in “servitization”. If you are interested in learning more we are happy to get involved as this is surely not only a very important step in the development of your company but also a fun journey, where you set the limits…
Our motto: small steps… leading to successful change.