“Servitization” (bundling of products with services) has become an imperative in today’s economy, especially in developed markets. Product companies that do not embrace this concept are bound to face stiff competition from low-cost manufacturers in emerging markets. Key among the risks they face is the prospect of being forced out of the market in the long term. Hence, the benefits of servitization are too compelling to ignore.
Companies need a strategy that fits the predictability and malleability of their sector. With an increasing amount of industries being subject to disruption it’s a fair bet that the strategic adaptability needs to increase.
Mergers and Acquisitions, Why and Why not? With a focus on High-Tech IndustryMotaz Agamawi
Mergers and acquisition is a regular term in business community. In this article we will try to cover the difference between mergers/acquisitions, types, general issues, advantages/disadvantages, and some important concepts related. In addition, we will have a deeper look for mergers and acquisition from the technology companies perspectives, in addition to some historical background and finally few success and failure cases in the technology domain. Also different techniques and methods for the valuation of small and medium software companies is covered due to the special nature of such companies.
Companies need a strategy that fits the predictability and malleability of their sector. With an increasing amount of industries being subject to disruption it’s a fair bet that the strategic adaptability needs to increase.
Mergers and Acquisitions, Why and Why not? With a focus on High-Tech IndustryMotaz Agamawi
Mergers and acquisition is a regular term in business community. In this article we will try to cover the difference between mergers/acquisitions, types, general issues, advantages/disadvantages, and some important concepts related. In addition, we will have a deeper look for mergers and acquisition from the technology companies perspectives, in addition to some historical background and finally few success and failure cases in the technology domain. Also different techniques and methods for the valuation of small and medium software companies is covered due to the special nature of such companies.
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Global Challenge: Outsourcing and Ventures by Multi-National Corporations
An old case study that I submitted for one of my MBA (Technology & Global Management) courses that I never thought I would actually put to good use!
Open source offers greater value than proprietary software because it empowers you to control your architecture, budget and IT strategy instead of ceding control to your vendor. This keynote presentation from WSO2Con London explains why and how.
Infosys Insights: Measuring complexity in a simple wayInfosys
Few businesses know how to measure complexity and, worse still, manage it. This white paper presents a clear and concise solution that can be easily implemented in any performance measurement system. It provides an accurate understanding of how companies can manage complexity on a continuous basis, as well as operate more efficiently without being prematurely hit by the law of diminishing returns.
Block Exemption Regulation increases competitiveness of automotive industry. Role of open IT standards such as Block Exemption Regulation gains prominence in the white paper
Entropy can only remain constant or increase over time – according to the second law of thermodynamics. Similarly, the laws of physics govern businesses too. This means when you try to reduce complexity within your own company, you will certainly end up increasing complexity for someone else if not for yourself. It is important to pay close attention to where complexity is going, particularly supply chain complexity.
Infosys' customer engagement software solution is a customer engagement platform that helps enterprises to improve customer engagements and build an eBusiness strategy
Infosys - Chemicals Industry Enterprise Mobility ApplicationsInfosys
The Chemical industry has positively been influenced by the advancements in mobile technology. Mobility enables organizations to stay connected in real time making them more productive.
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
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call us at : 08263069601
Global Challenge: Outsourcing and Ventures by Multi-National Corporations
An old case study that I submitted for one of my MBA (Technology & Global Management) courses that I never thought I would actually put to good use!
Open source offers greater value than proprietary software because it empowers you to control your architecture, budget and IT strategy instead of ceding control to your vendor. This keynote presentation from WSO2Con London explains why and how.
Infosys Insights: Measuring complexity in a simple wayInfosys
Few businesses know how to measure complexity and, worse still, manage it. This white paper presents a clear and concise solution that can be easily implemented in any performance measurement system. It provides an accurate understanding of how companies can manage complexity on a continuous basis, as well as operate more efficiently without being prematurely hit by the law of diminishing returns.
Block Exemption Regulation increases competitiveness of automotive industry. Role of open IT standards such as Block Exemption Regulation gains prominence in the white paper
Entropy can only remain constant or increase over time – according to the second law of thermodynamics. Similarly, the laws of physics govern businesses too. This means when you try to reduce complexity within your own company, you will certainly end up increasing complexity for someone else if not for yourself. It is important to pay close attention to where complexity is going, particularly supply chain complexity.
Infosys' customer engagement software solution is a customer engagement platform that helps enterprises to improve customer engagements and build an eBusiness strategy
Infosys - Chemicals Industry Enterprise Mobility ApplicationsInfosys
The Chemical industry has positively been influenced by the advancements in mobile technology. Mobility enables organizations to stay connected in real time making them more productive.
Automotive retailing solutions and automotive retailing services help original equipment manufacturers and dealer service providers to improve business effectiveness and operational efficiency
Infosys Insights: The state of the global automotive industry Infosys
'A car is just a couch on four wheels,' Geely chairman, Li Shufu, once famously said. While a tad oversimplified, this comment nevertheless highlights the fact that the car is becoming increasingly commoditized. Its value and importance are on a fast decline in some markets. Hence, original equipment manufacturers (OEMs) have to identify and explore new revenue streams that the global automotive industry so desperately needs.
Infosys – Automobile Warranty Management System | ProcessInfosys
The Automobile Warranty Management System helps in building an agile platform for business users to develop, maintain, simulate and amend frequently changing business decisions
An introduction to Rex - FLOSS UK DevOps York 2015Andy Beverley
An introduction to Rex automation and orchestration. Presentation given at FLOSS UK DevOps York 2015. Get a general overview of Rex and find out why I like to use it.
Enterprise Collaboration Solution Breaks Down Information SilosInfosys
Infosys implemented a document and records management platform for robust data governance and regulatory compliance at a global oil and gas company. The platform enabled employees to better manage, store, and archive electronic documents. The document management and collaboration ecosystem helped the company save more than US$500,000 annually.
Take a glimpse at few of our efforts that we made to demonstrate that efficient technologies can easily be deployed in large scale in a cost effective manner to make our campus environmental friendly on this World Environment Day 2015
Learning to Scale OpenStack: An Update from the Rackspace Public CloudJesse Keating
At the Portland and Hong Kong Summits, Rackspace invited the OpenStack community into the their experiences deploying OpenStack trunk to their their Public Cloud Infrastructure. In this presentation, Rackspace's Deployment System Team will provide an update on the latest challenges, triumphs, and lessons learned deploying and operating a production OpenStack public cloud during the Icehouse cycle. We’ll conclude by sharing the vision for our next steps in OpenStack deployments during the Juno cycle and beyond.
Infosys - Enterprise Business Innovation & Evolution | Corporate DNAInfosys
Businesses bear much resemblance to living organisms from an evolutionary, biological perspective. Alas, all too often, innovation in companies is hampered by misaligned incentive systems or inadequate organizational design, which don’t encourage creative thinking. By taking a broader view of innovation and realizing that the key enabler at the end of the day is corporate culture, we also realize that any process, system or employee is only as good as the corporate culture allows. Changing and improving corporate culture is one of the hardest undertakings one can pursue. Read the whitepaper to explore more.
The Information Services industry is in the eye of the digital storm. Two major contenders within this industry - traditional and new age media companies must adopt strategies for the significant mass of millennials and demanding consumers.
When it comes to scrutinizing costs, most insurance companies can say “Been there, done that. Got the t-shirt.” Managers are familiar with the refrain from above to trim here and cut there. The typical result is flirtation with the latest management trends like lean, outsourcing and offshoring, and others. However, the results tend to be the same. Budgets reflect last year’s spend plus or minus a couple of percent in the same places.
Mass Portfolio Customisation and the Unique Investor - Financial SimplicityStuart Holdsworth
The attraction of mass customisation had its genesis in the fast moving consumer goods sector: now, its potential extends seamlessly to global wealth management. After all, why should consumers not be able to manage investment portfolios via their iTunes account?
This will go into the minute details of growth and scaling, examining its unique features, advantages, and considerations.
Successful start-ups that grow and scale quickly are known as “unicorns” or “billion-dollar companies” .
Servitization: service is the future of manufacturingABN AMRO
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.
Infosys commissioned an independent market research company, Vanson Bourne, to investigate the use of digital technologies and key trends in nine industries. We surveyed 1,000 senior decision makers from business and IT, from large organizations with 1,000 employees or more and annual revenue of at least US$500 million.
The report aims to discover:
a) the surging tide of digital technology adoption in organizations – what is used and where?
b) the promised land of digital technology use, and the hurdles organizations face to get there
c) the biggest disruptive digital trends within the next three years and why organizations see them as vital to future success
The summary here presents the survey results and highlights the digital outlook that will define the healthcare industry strategy over the next three years.
5 tips to make your mainframe as fit as youInfosys
Just like a periodic health check-up is important to assess your overall well-being, a detailed reexamination of the enterprise IT landscape is paramount. We take a look at the various ways an enterprise needs to revamp its mainframe and sharpen its functionalities to stay ahead of the game. While APIs aid you in providing superior customer service, migrating to the cloud provides you with scalability and resilience. These and many more sub-offerings from Infosys aid your organization in staying agile and equipped to leverage the latest technologies to cater to the ever-changing market. Learn more.
Human Amplification In The Enterprise - Resources and UtilitiesInfosys
Infosys commissioned a study to develop a research methodology and get insights into the current nature of digital transformation enterprises undergo, across industry verticals. This deck provides industry specific insights from Resources and Utilities.
The study sought to understand a) the specific drivers of digital transformation for enterprises, b) the various facets of this transformation, c) expected and ensuing outcomes, and d) the role of Artificial Intelligence (AI).
Human Amplification In The Enterprise - Telecom and CommunicationInfosys
Infosys commissioned a study to develop a research methodology and get insights into the current nature of digital transformation enterprises undergo, across industry verticals. This deck provides industry specific insights from Telecom and Communication.
The study sought to understand a) the specific drivers of digital transformation for enterprises, b) the various facets of this transformation, c) expected and ensuing outcomes, and d) the role of Artificial Intelligence (AI).
Human Amplification In The Enterprise - Retail and CPGInfosys
Infosys commissioned a study to develop a research methodology and get insights into the current nature of digital transformation enterprises undergo, across industry verticals. This deck provides industry specific insights from Retail and CPG.
The study sought to understand a) the specific drivers of digital transformation for enterprises, b) the various facets of this transformation, c) expected and ensuing outcomes, and d) the role of Artificial Intelligence (AI).
Human Amplification In The Enterprise - Manufacturing and High-techInfosys
Infosys commissioned a study to develop a research methodology and get insights into the current nature of digital transformation enterprises undergo, across industry verticals. This deck provides industry specific insights from Manufacturing and High-tech.
The study sought to understand a) the specific drivers of digital transformation for enterprises, b) the various facets of this transformation, c) expected and ensuing outcomes, and d) the role of Artificial Intelligence (AI).
Human amplification in the enterprise - Automation. Innovation. Learning.Infosys
Infosys commissioned a study to develop a research methodology and get insights into the current nature of digital transformation enterprises undergo, across industry verticals. This deck provides industry specific insights from Automation, Innovation and learning.
The study sought to understand a) the specific drivers of digital transformation for enterprises, b) the various facets of this transformation, c) expected and ensuing outcomes, and d) the role of Artificial Intelligence (AI).
Human Amplification In The Enterprise - Healthcare and Life SciencesInfosys
Infosys commissioned a study to develop a research methodology and get insights into the current nature of digital transformation enterprises undergo, across industry verticals. This deck provides industry specific insights from Healthcare and Life Sciences
The study sought to understand a) the specific drivers of digital transformation for enterprises, b) the various facets of this transformation, c) expected and ensuing outcomes, and d) the role of Artificial Intelligence (AI).
Human Amplification In The Enterprise - Banking and InsuranceInfosys
Infosys commissioned a study to develop a research methodology and get insights into the current nature of digital transformation enterprises undergo, across industry verticals. This deck provides industry specific insights from Banking and Insurance.
The study sought to understand a) the specific drivers of digital transformation for enterprises, b) the various facets of this transformation, c) expected and ensuing outcomes, and d) the role of Artificial Intelligence (AI).
Infosys' session on IoT World - Systems Integration in an IOT world: A practi...Infosys
The installed base of IOT products is growing exponentially along with its economic impact. Innovators are seeking a new generation of technology solutions that will help them create, operate and maintain smart connected products. It is a system of systems world that is complex, heterogeneous with a mix of incompatible, non-standard, multi-vendor, smart & not-so smart, connected and not-connected products that generate incredible amounts of data to be analyzed for insight and value. In this presentation, Jayraj Nair, AVP and Head of IoT, Infosys Engineering Services will share his experience’s building real world IOT solutions, innovative ways in which a system integrator can enable the integration between the physical and digital worlds and accelerate the adoption of Internet of Things.
Industry 4.0 - The State of the Nations - Executive SummaryInfosys
The first major study in the field of Industrial Manufacturing to shed light on asset efficiency as a major driver for competiveness and to identify company-specific readiness and maturity for Industry 4.0 enabled asset efficiency.
UiPath Test Automation using UiPath Test Suite series, part 4DianaGray10
Welcome to UiPath Test Automation using UiPath Test Suite series part 4. In this session, we will cover Test Manager overview along with SAP heatmap.
The UiPath Test Manager overview with SAP heatmap webinar offers a concise yet comprehensive exploration of the role of a Test Manager within SAP environments, coupled with the utilization of heatmaps for effective testing strategies.
Participants will gain insights into the responsibilities, challenges, and best practices associated with test management in SAP projects. Additionally, the webinar delves into the significance of heatmaps as a visual aid for identifying testing priorities, areas of risk, and resource allocation within SAP landscapes. Through this session, attendees can expect to enhance their understanding of test management principles while learning practical approaches to optimize testing processes in SAP environments using heatmap visualization techniques
What will you get from this session?
1. Insights into SAP testing best practices
2. Heatmap utilization for testing
3. Optimization of testing processes
4. Demo
Topics covered:
Execution from the test manager
Orchestrator execution result
Defect reporting
SAP heatmap example with demo
Speaker:
Deepak Rai, Automation Practice Lead, Boundaryless Group and UiPath MVP
Encryption in Microsoft 365 - ExpertsLive Netherlands 2024Albert Hoitingh
In this session I delve into the encryption technology used in Microsoft 365 and Microsoft Purview. Including the concepts of Customer Key and Double Key Encryption.
Slack (or Teams) Automation for Bonterra Impact Management (fka Social Soluti...Jeffrey Haguewood
Sidekick Solutions uses Bonterra Impact Management (fka Social Solutions Apricot) and automation solutions to integrate data for business workflows.
We believe integration and automation are essential to user experience and the promise of efficient work through technology. Automation is the critical ingredient to realizing that full vision. We develop integration products and services for Bonterra Case Management software to support the deployment of automations for a variety of use cases.
This video focuses on the notifications, alerts, and approval requests using Slack for Bonterra Impact Management. The solutions covered in this webinar can also be deployed for Microsoft Teams.
Interested in deploying notification automations for Bonterra Impact Management? Contact us at sales@sidekicksolutionsllc.com to discuss next steps.
Elevating Tactical DDD Patterns Through Object CalisthenicsDorra BARTAGUIZ
After immersing yourself in the blue book and its red counterpart, attending DDD-focused conferences, and applying tactical patterns, you're left with a crucial question: How do I ensure my design is effective? Tactical patterns within Domain-Driven Design (DDD) serve as guiding principles for creating clear and manageable domain models. However, achieving success with these patterns requires additional guidance. Interestingly, we've observed that a set of constraints initially designed for training purposes remarkably aligns with effective pattern implementation, offering a more ‘mechanical’ approach. Let's explore together how Object Calisthenics can elevate the design of your tactical DDD patterns, offering concrete help for those venturing into DDD for the first time!
Accelerate your Kubernetes clusters with Varnish CachingThijs Feryn
A presentation about the usage and availability of Varnish on Kubernetes. This talk explores the capabilities of Varnish caching and shows how to use the Varnish Helm chart to deploy it to Kubernetes.
This presentation was delivered at K8SUG Singapore. See https://feryn.eu/presentations/accelerate-your-kubernetes-clusters-with-varnish-caching-k8sug-singapore-28-2024 for more details.
Transcript: Selling digital books in 2024: Insights from industry leaders - T...BookNet Canada
The publishing industry has been selling digital audiobooks and ebooks for over a decade and has found its groove. What’s changed? What has stayed the same? Where do we go from here? Join a group of leading sales peers from across the industry for a conversation about the lessons learned since the popularization of digital books, best practices, digital book supply chain management, and more.
Link to video recording: https://bnctechforum.ca/sessions/selling-digital-books-in-2024-insights-from-industry-leaders/
Presented by BookNet Canada on May 28, 2024, with support from the Department of Canadian Heritage.
JMeter webinar - integration with InfluxDB and GrafanaRTTS
Watch this recorded webinar about real-time monitoring of application performance. See how to integrate Apache JMeter, the open-source leader in performance testing, with InfluxDB, the open-source time-series database, and Grafana, the open-source analytics and visualization application.
In this webinar, we will review the benefits of leveraging InfluxDB and Grafana when executing load tests and demonstrate how these tools are used to visualize performance metrics.
Length: 30 minutes
Session Overview
-------------------------------------------
During this webinar, we will cover the following topics while demonstrating the integrations of JMeter, InfluxDB and Grafana:
- What out-of-the-box solutions are available for real-time monitoring JMeter tests?
- What are the benefits of integrating InfluxDB and Grafana into the load testing stack?
- Which features are provided by Grafana?
- Demonstration of InfluxDB and Grafana using a practice web application
To view the webinar recording, go to:
https://www.rttsweb.com/jmeter-integration-webinar
Dev Dives: Train smarter, not harder – active learning and UiPath LLMs for do...UiPathCommunity
💥 Speed, accuracy, and scaling – discover the superpowers of GenAI in action with UiPath Document Understanding and Communications Mining™:
See how to accelerate model training and optimize model performance with active learning
Learn about the latest enhancements to out-of-the-box document processing – with little to no training required
Get an exclusive demo of the new family of UiPath LLMs – GenAI models specialized for processing different types of documents and messages
This is a hands-on session specifically designed for automation developers and AI enthusiasts seeking to enhance their knowledge in leveraging the latest intelligent document processing capabilities offered by UiPath.
Speakers:
👨🏫 Andras Palfi, Senior Product Manager, UiPath
👩🏫 Lenka Dulovicova, Product Program Manager, UiPath
Generating a custom Ruby SDK for your web service or Rails API using Smithyg2nightmarescribd
Have you ever wanted a Ruby client API to communicate with your web service? Smithy is a protocol-agnostic language for defining services and SDKs. Smithy Ruby is an implementation of Smithy that generates a Ruby SDK using a Smithy model. In this talk, we will explore Smithy and Smithy Ruby to learn how to generate custom feature-rich SDKs that can communicate with any web service, such as a Rails JSON API.
Epistemic Interaction - tuning interfaces to provide information for AI supportAlan Dix
Paper presented at SYNERGY workshop at AVI 2024, Genoa, Italy. 3rd June 2024
https://alandix.com/academic/papers/synergy2024-epistemic/
As machine learning integrates deeper into human-computer interactions, the concept of epistemic interaction emerges, aiming to refine these interactions to enhance system adaptability. This approach encourages minor, intentional adjustments in user behaviour to enrich the data available for system learning. This paper introduces epistemic interaction within the context of human-system communication, illustrating how deliberate interaction design can improve system understanding and adaptation. Through concrete examples, we demonstrate the potential of epistemic interaction to significantly advance human-computer interaction by leveraging intuitive human communication strategies to inform system design and functionality, offering a novel pathway for enriching user-system engagements.
Connector Corner: Automate dynamic content and events by pushing a buttonDianaGray10
Here is something new! In our next Connector Corner webinar, we will demonstrate how you can use a single workflow to:
Create a campaign using Mailchimp with merge tags/fields
Send an interactive Slack channel message (using buttons)
Have the message received by managers and peers along with a test email for review
But there’s more:
In a second workflow supporting the same use case, you’ll see:
Your campaign sent to target colleagues for approval
If the “Approve” button is clicked, a Jira/Zendesk ticket is created for the marketing design team
But—if the “Reject” button is pushed, colleagues will be alerted via Slack message
Join us to learn more about this new, human-in-the-loop capability, brought to you by Integration Service connectors.
And...
Speakers:
Akshay Agnihotri, Product Manager
Charlie Greenberg, Host
GraphRAG is All You need? LLM & Knowledge GraphGuy Korland
Guy Korland, CEO and Co-founder of FalkorDB, will review two articles on the integration of language models with knowledge graphs.
1. Unifying Large Language Models and Knowledge Graphs: A Roadmap.
https://arxiv.org/abs/2306.08302
2. Microsoft Research's GraphRAG paper and a review paper on various uses of knowledge graphs:
https://www.microsoft.com/en-us/research/blog/graphrag-unlocking-llm-discovery-on-narrative-private-data/
Smart TV Buyer Insights Survey 2024 by 91mobiles.pdf91mobiles
91mobiles recently conducted a Smart TV Buyer Insights Survey in which we asked over 3,000 respondents about the TV they own, aspects they look at on a new TV, and their TV buying preferences.
State of ICS and IoT Cyber Threat Landscape Report 2024 previewPrayukth K V
The IoT and OT threat landscape report has been prepared by the Threat Research Team at Sectrio using data from Sectrio, cyber threat intelligence farming facilities spread across over 85 cities around the world. In addition, Sectrio also runs AI-based advanced threat and payload engagement facilities that serve as sinks to attract and engage sophisticated threat actors, and newer malware including new variants and latent threats that are at an earlier stage of development.
The latest edition of the OT/ICS and IoT security Threat Landscape Report 2024 also covers:
State of global ICS asset and network exposure
Sectoral targets and attacks as well as the cost of ransom
Global APT activity, AI usage, actor and tactic profiles, and implications
Rise in volumes of AI-powered cyberattacks
Major cyber events in 2024
Malware and malicious payload trends
Cyberattack types and targets
Vulnerability exploit attempts on CVEs
Attacks on counties – USA
Expansion of bot farms – how, where, and why
In-depth analysis of the cyber threat landscape across North America, South America, Europe, APAC, and the Middle East
Why are attacks on smart factories rising?
Cyber risk predictions
Axis of attacks – Europe
Systemic attacks in the Middle East
Download the full report from here:
https://sectrio.com/resources/ot-threat-landscape-reports/sectrio-releases-ot-ics-and-iot-security-threat-landscape-report-2024/
State of ICS and IoT Cyber Threat Landscape Report 2024 preview
Infosys Insights: Driving revenue through service innovation
1. - Dr. Martin Lockstrom
Driving Revenue Through Service Innovation
INSIGHTS
2. Introduction
Most company executives have ambitious
growth plans. It’s not uncommon to see
revenue growth targets of 10-15% per year,
even though overall markets might grow
at a more modest rate of 2-5% depending
on geography. Obviously, this means
that it is not sufficient to simply protect
one’s market share and grow with the
market, but more importantly, to create
new revenue streams from new products
and services. In recent years, many
manufacturers in developed markets have
been struggling to stay competitive as
competition especially from manufacturers
in emerging markets has mounted. Those
that have survived and are still thriving all
have something in common: they have
made a transition from a product-centric to
service-centric organization.
Servitization – What is It?
As products across all industries are
becoming increasingly commoditized,
many companies are trying to adopt a
more service-oriented business model. The
development is logical: research suggests
that Western companies have to reduce
their cost by at least 30% in the mid-term
in order to stay competitive. Servitization
means that a producer bundles the
products with services into a solution, with
the objective of creating new revenue
streams.
There are also other rationales behind;
for instance, a service solution is more
intangible in nature vis-à-vis a pure
product, meaning that it is harder to
analyze and imitate by competitors,
meaning that profit margins potentially
should be higher, at least in the short to
medium term. Furthermore, a service
solution is also more outcome-oriented,
meaning that the producer gets paid for
helping the customer to reaching an end
rather than providing a means to an end.
This also helps in negotiations, as the
rhetoric can effectively be shifted away
from pricing toward value.
One of the pioneers in this area is Rolls-
Royce, which launched its“Power-By-The-
Hour”concept in the 1960s (Figure 1). It is
important to remember that servitization
is distinctly different from leasing, where
the latter is merely a way of spreading a
cash flow over an extended period of time,
whereas the former is about creating new
revenue streams.
3. Table 1. Producer and customer benefits of servitization
Figure 1. Servitization at Rolls-Royce
POWER-BY-THE-HOUR AT ROLLS-ROYCE
Situation:
In the 1960s, RR wanted to improve customer service
and help them shift CAPEX to OPEX
Solution/Innovation:
RR took responsibility for delivery, operations,
maintenance and repair throughout its lifecycle.
Basically means paying for a jet engine as a service
only when it is used (and working) through a
fixed-fee per flying hour. Usage time was manually
recorded and approved mutually on trust basis
Outcomes:
Reduced total cost of ownership (TCO) for customer
and higher revenue for RR, lower capital expenditure
The Case for Servitization
Customers increasingly adopt more of a variable-cost structure with as low upfront investment as possible, i.e. buying construction and
industrial services on demand instead of a one-time purchase. A viable way of winning and keeping customers is to reduce complexity
and simplify for the customer, particularly through servitization of product offerings, e.g.”pay for a hole instead of a drill”. An overview of
servitization benefits for customers and producers are shown in Table 1.
As can be seen above, there are clear benefits to both parties involved, which can explain the success of the model. Servitization has
taken place in most industries; an overview of illustrative cases is shown in Table 2.
PRODUCER BENEFITS
• Predictable and constant revenue stream from
subscribed individuals for the duration of the
subscriber’s agreement.
• Reduce uncertainty and the riskiness of the
enterprise.
• Greater customer intimacy through more regular
customer interaction.
• Higher average customer lifetime value (ACLV) than
that of nonrecurring business models
• More potential for upselling and cross-selling other
products or services.
CUSTOMER BENEFITS
• No need for upfront investments
• More predictiable cash flow
• Lower threshold for making purchase decision
• Greater incentive to maintain relationships with
their customers (after all, why should they care once
they’ve received their money?)
• Better opportunities of alignment with customer’s
goals and expectations
• The customer that receives value is more likely to
buying the service and possibly at an increased rate
in the future.