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         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)
www.aepartners.fi

How to productize your service