Servitisation
Has been found to be a highly effective approach for manufacturers seeking to bolster their effectiveness.
by Michael Hurwich, SPMG
Our Approach
Servitisation is a value-added Strategy for Manufacturers
In the past 10-15 years, manufacturers have been increasingly experimenting with or even deploying servitisation in their business models. Servitisation is a trend that is seeing manufacturing companies shifting into the services realm. Traditionally, the manufacturing service chain functioned on the notion that equipment sales and installation was sufficient to optimize revenue. Essentially, manufacturers would make products for customers and people, while service companies would provide the services.
Today, boundaries are blurring, as first-in-class manufacturers embark on a transformation to capture more of the customer and consumer value chain.
Enter servitisation, which advocates a model where manufacturers sell products and bundle that with services, with the goal to create more value to their customers.
Beyond manufacturing: real value
Servitisation transforms manufacturing by blending products and services to create greater customer value and sustainable competitive advantage. From “usage-by-the-hour” models to predictive maintenance, this approach enhances margins and deepens client relationships.
Contact our pricing consultants today to explore how servitisation can optimize your pricing and revenue strategy.