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Competitive Advantage Through
SERVITIZATION
By Manufacturing Companies
SERVITIZATION
“Servitization is viewed as the way in
which firms provide an integrated
bundle of both goods and services o...
SERVITIZATION
 Products today have a higher service component

than in previous decades.
 the Servitization of products.
 Virtually e...
A Servitized firm
SIEMENS
Siemens is committed to
providing outstanding customer
service for the lifetime of your
applianc...
SIEMENS
 Arrange an engineer visit

•Replacement
spare parts &
accessories
 Product advice
SIEMENS
 Instruction manuals

 Dishwasher repair action
SERVITIZATION
“Servitization is the innovation of an
organizations capabilities and
processes to better create mutual
valu...
“Selling product-----------selling
product-service system”
SERVITIZATION
More and more manufacturers are
competing though a portfolio of integrated
products and services. This is a
...
It goes in a way…
Traditional Concept
 focused on “Product”.

 put their efforts on
 back - end- units
 cost reduction

 product innova...
BUT…
 Manufacturers need to consider if they are to

sustain future business and differentiate themselves
from the compet...
In Case Of Manufacturing
 Product is the entry ticket into the future

business/profit stream.
 But all future sales dep...
Transformation to
SERVITIZATION
•Significant transformation from

“back end” to “front end” activities.
•Customer-facing f...
Main Drivers
 Companies are pushing themselves towards servitization

due to following factors:
 technology

 globaliza...
Now Manufacturers are of the view…
 Offering great products, technologies or services is

merely an entry stake.
 The ne...
Shifting the
Traditional Mind-Set
•Servitization becomes a customer - centric

approach.

How Companies are servitizing?
•...
Concluding …
•The boundaries between manufacturing

and service are becoming increasingly
blurred.
•More and more manufact...
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Competitive advantage through servitization

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How Firms gain Competitive Advantage through Servitization Concept. This concept is more famous specially in developed countries like U.S. Servitization is actually bundle of product and services that provide the best solution of customer need/problem. Choice of Suitable services are important here.

Published in: Marketing

Competitive advantage through servitization

  1. 1. Competitive Advantage Through SERVITIZATION By Manufacturing Companies
  2. 2. SERVITIZATION “Servitization is viewed as the way in which firms provide an integrated bundle of both goods and services or add extra service components to their core offering.“
  3. 3. SERVITIZATION
  4. 4.  Products today have a higher service component than in previous decades.  the Servitization of products.  Virtually every product today has a service component in it.
  5. 5. A Servitized firm SIEMENS Siemens is committed to providing outstanding customer service for the lifetime of your appliance. BUT HOW??
  6. 6. SIEMENS  Arrange an engineer visit •Replacement spare parts & accessories  Product advice
  7. 7. SIEMENS  Instruction manuals  Dishwasher repair action
  8. 8. SERVITIZATION “Servitization is the innovation of an organizations capabilities and processes to better create mutual value through a shift from selling products to selling product service systems..“
  9. 9. “Selling product-----------selling product-service system”
  10. 10. SERVITIZATION More and more manufacturers are competing though a portfolio of integrated products and services. This is a SERVICE-LED COMPETITVE SRTATEGY and the process through which it is achieved is called SERVITIZATION.
  11. 11. It goes in a way…
  12. 12. Traditional Concept  focused on “Product”.  put their efforts on  back - end- units  cost reduction  product innovation
  13. 13. BUT…  Manufacturers need to consider if they are to sustain future business and differentiate themselves from the competition.  They must integrate client and capability requirements to provide tailored solutions.
  14. 14. In Case Of Manufacturing  Product is the entry ticket into the future business/profit stream.  But all future sales depends on services, this is where  reputation  brand image  profitability are determined.  customer satisfaction & retention
  15. 15. Transformation to SERVITIZATION •Significant transformation from “back end” to “front end” activities. •Customer-facing front end units are established to engage directly with customers
  16. 16. Main Drivers  Companies are pushing themselves towards servitization due to following factors:  technology  globalization  fierce competitive pressure  profitability  differentiation in market  “Why do your customers choose to buy from you rather than from your competition?”
  17. 17. Now Manufacturers are of the view…  Offering great products, technologies or services is merely an entry stake.  The need that exists is to maintain an edge in the way their companies interact with customers. They recognized that customers often value how they interact with their suppliers as much as or more than what they actually buy.
  18. 18. Shifting the Traditional Mind-Set •Servitization becomes a customer - centric approach. How Companies are servitizing? •The trick for companies is to redefine their offerings in ways that make it easy for customers to get the benefits they seek.
  19. 19. Concluding … •The boundaries between manufacturing and service are becoming increasingly blurred. •More and more manufacturers are competing though a portfolio of integrated products and services and the process through which it is achieved is called servitization.

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