How to productize your service

Products are standardized and inﬂexible

...whereas services are ﬂexible and adaptable

So, what is the point in “productizing” a service?

The idea is not to make the service inﬂexible

The idea is to systematize the service in a way that beneﬁts both the customer and the provider

Effect of service systematization on service tasks Customer- 50...75% speciﬁc work 85...95% Standardized 25...50% Automated 5...15% Repeatable Before After

How can productization improve your service business?

It establishes trust and reduces the customer’s risk

It makes the intangible more tangible

It increases service productivity

It can make your service stand out

Through consistent delivery it increases customer satisfaction

“A service is productized when its ownership can be traded” Jorma Sipilä

How to start productizing a service?

1. Explore what new value a productized service would provide to your customers

2. Deﬁne what is standardized and what customizable in your service

3. Make a service blueprint

4. Automate parts of the service process with online tools

5. Devise a simple pricing system

6. Create a consistent look and feel for tangible service elements

7. Train your people how to fulﬁll the customer proposition

Examples

Text editing and proofreading with an online service process (Wordy)

Mass-customized home design (Moor)

Software care service (Fujitsu, Finland)

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How to productize your service

by Aarni Heiskanen

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