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Productize your service
       Aarni Heiskanen
      ©2010 AE Partners
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  ...
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)
www.aepartners.fi
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How to productize your service

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Why and how to turn your service into a product

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How to productize your service

  1. Productize your service Aarni Heiskanen ©2010 AE Partners
  2. Products are standardized and inflexible
  3. ...whereas services are flexible and adaptable
  4. So, what is the point in “productizing” a service?
  5. The idea is not to make the service inflexible
  6. The idea is to systematize the service in a way that benefits both the customer and the provider
  7. Effect of service systematization on service tasks Customer- 50...75% specific work 85...95% Standardized 25...50% Automated 5...15% Repeatable Before After
  8. How can productization improve your service business?
  9. It establishes trust and reduces the customer’s risk
  10. It makes the intangible more tangible
  11. It increases service productivity
  12. It can make your service stand out
  13. Through consistent delivery it increases customer satisfaction
  14. “A service is productized when its ownership can be traded” Jorma Sipilä
  15. How to start productizing a service?
  16. 1. Explore what new value a productized service would provide to your customers
  17. 2. Define what is standardized and what customizable in your service
  18. 3. Make a service blueprint
  19. 4. Automate parts of the service process with online tools
  20. 5. Devise a simple pricing system
  21. 6. Create a consistent look and feel for tangible service elements
  22. 7. Train your people how to fulfill the customer proposition
  23. Examples
  24. Text editing and proofreading with an online service process (Wordy)
  25. Mass-customized home design (Moor)
  26. Software care service (Fujitsu, Finland)
  27. www.aepartners.fi

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