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Servitization is the process whereby services are given an increasingly important role in the business model of manufacturing companies. In addition to – and sometimes at the expense of – traditional product and machine sales. Service turns from being a cost item into an opportunity to provide better service for the customer and thereby generate additional revenue. Servitization in the manufacturing industry can consist of companies proactively offering repair and overhaul services, spare parts and training in addition to their core products. But servitization also includes broader services such as consultancy, financing, insurance and logistics services. In this report ABN AMRO and Praetimus discuss the advantages, but also the challenges involved in the transition to a service-oriented business model.