SERVITIZATION
Strategy to boost after-sales profitability
WHAT IS SERVITIZATION?_
_ to cover After-Sales needs
Servitization represents a key transformation for industrial manufacturers (OEMs) seeking to evolve from a traditional model based on product sales to a more profitable and sustainable model focused on offering integrated services and solutions.
This strategy not only improves competitiveness but also allows companies to maintain stronger relationships with their customers and generate recurring revenue throughout the equipment’s lifecycle.
EXAMPLES OF SERVITIZATION _
_ companies and sectors already implementing Servitization
“Power by the Hour”
A leading aircraft engine manufacturer charges customers based on the engine’s flying hours, with pricing linked to product availability. The value proposition includes the following services:
-
- Installation
- Monitoring
- Maintenance
- Repair
- Engine removal at end of life
“Pay per Printed Page”
A leading manufacturer of photocopiers and printing equipment generates 85% of its revenue through services, providing everything the user needs to obtain printed pages:
-
- photocopier supply
- Printing software
- Consumables
- Technical support
“Truck Servitization“
A leading truck manufacturer offers maintenance contracts:
- Charging a fixed price over the vehicle’s lifecycle
- Also selling fleet management services
- Profitability comes from services…
- … trucks are even sold below manufacturing cost
“Turnkey Solutions”
An industrial automation manufacturer for food processing plants offers a complete turnkey solution, which includes:
-
- Custom design and engineering
- Monitoring
- Maintenance and repair
- Modernization
“Guaranteed Availability“
A leading manufacturer of lifting systems has developed an application that is transforming the way its Technical Support Service (TSS):
- Interacts with facility managers during an incident
- Enables real-time, two-way communication
- Enhances the user experience through a more agile, human and effective approach
BENEFITS OF SERVITIZATION _
_ benefits of Servitization for Industrial Equipment Manufacturers (OEMs)
Generarion of recurring and predictable revenue
Access to real-time operational data to improve products and services
Business stability even during periods of low demand for new equipment
Greater customer loyalty and retention
Differentiation from purely product-based competitors
Access to real-time operational data to improve products and services
¿Where is your company on its servitization journey? _
_ self-assessment to determine current status and future opportunities
To help industrial companies assess their level of readiness, we have created the Servitization Maturity Index (SMI).
This self-assessment tool will allow you to identify your current situation in key areas such as business model, digitalization, service offerings, customer relationships, and data utilization. Based on your answers, you will be able to visualize opportunities for improvement and build a roadmap toward a more service-oriented business model.
We invite you to complete the self-assessment questionnaire and discover where your organization is on the servitization journey. Upon completion, you will receive a personalized report with specific recommendations for moving forward strategically and sustainably.
