The document discusses servitization, a process where product-focused companies shift to offering integrated products and services to enhance client value and create long-lasting relationships. Business leaders from various sectors contributed insights on motivations for this shift, including improving client loyalty, differentiation, and sustainability. Challenges in this transition include changing organizational mindsets and designing new business models to effectively provide solutions that meet client needs.

1. Me,Anna
Servitization is the
‘new’ normal.
Introduction to the results of a research to Servitization
by Anna van der Togt & Livework

2. We invited business leaders from 7 sectors to get inspired and
discuss the topic servitization.

3. The evening revolved around
The Topic: Servitization
...the process through which (originally)
product focused companies change
their strategies and value proposition to
services.

4. The business drivers written on post-its by participants divided in four categories
Why shift to services? - Participants
Client
...to increase client
loyalty
...to have contact with
the client on a daily
basis
Economic
...to maintain a premium
price level
...to make business
across the total product
life-cycle
...to damp cyclical
streams of income
Competitive
...to differentiate from
competitors
Environmental
...to be able to provide
better products that last
longer --> sustainable

5. In the context of B2B product oriented companies:
Why shift to services?
The bigger picture:
Responsibly using
resources
Business drivers:
Increasing value
through services
Client drivers:
Getting solutions
that provide
support
B2B Clients want solutions that provide
support. Not only by alleviating some of
the product-related burdens, but also by
supporting them in achieving their key
goals. Offering integrated product-service
solutions potentially is about shifting your
role from supplier to trusted partner. This
allows your clients to focus on achieving
the best results for their customers by
jointly applying core capabilities and
sharing responsibility.
By offering integrated product-service
solutions rather than products, companies
increase the value of their offer. The
proposition is no longer evaluated on its
quality and associated costs, but on its
value for the client’s overall process. This
total package differentiates the company
from its competitors and it allows greater
profit margins to be made. Moreover,
servitization contributes to provide a way
to create long-lasting client relationships.
Servitization can be a solution to the
supposed conflict between economic
growth and environmental considerations.
By providing use or result of a product
rather than ownership of the product,
the supplier can eliminate incentives to
produce products that must constantly be
replaced. Thus reducing waste.

6. Before deciding where to shift to...
What is the current situation?
Pure Services
Clients pay for the
expertise of a service
provider (no products)
Result Oriented Services
Clients pay for the result
of a product (or of a
combination of products)
Use Oriented Services
Clients pay for the (best)
use of a product
Possession Oriented
Services
Clients pay for a product
that lasts as long as
possible
Pure Products
Clients pay for a product
The attendees from B2B product focused companies all indicated that the majority of their portfolio
could be plotted around pure products and possession oriented services. The use oriented services
were mostly trainings. Some participants indicated that their portfolio included services that could
be considered result oriented. However, these are accompanied by extensive contracts causing
the risks and burdens to remain with the client. Therefore it is questionable whether these type of
offerings are truly a shift from product to client focus.

7. Pure Services
Clients pay for the
expertise of a service
provider (no products)
Result Oriented Services
Clients pay for the result
of a product (or of a
combination of products)
Use Oriented Services
Clients pay for the (best)
use of a product
Possession Oriented
Services
Clients pay for a product
that lasts as long as
possible
Pure Products
Clients pay for a product
Most of the unacknowledged messiahs attending the evening hoped that the majority of
their company’s portfolio would shift towards use- or result oriented services. They want their
organizations to shift its focus from the physical design and production to providing solutions that fit
the client and its context.
How far should you servitize?
The service aspirations are...

8. How far should you servitize?
Challenges in the shift to services
Overcoming Resistance
Most of the attendees emphasized that
their biggest difficulty is changing their
own organizations & ecosystem. People
are too stuck in their product focus
and structures and there is no mindset
present that fits a service provider.
Reinventing the Business
Designing the business side of a
servitization shift is hard. The business
model has to be reinvented, new types
of contracts need to be found and the
shift of risk needs to be well thought
through. A clearly-defined service
strategy is paramount. However, to
formulate this vision the company
needs a new shared language and a
thorough understanding of their client’s
operations.
Offering Complete Solutions
Clients want servitizing companies
to unburden them from product
related activities, want them to share
responsibility and would like them reach
their goals. For that reason, servitization
is all about offering integrated solutions.
The challenge in providing solutions is
recognizing what a client (unknowingly)
wants and needs and taking care
of “everything” (e.g. maintenance,
upgrades, repair, returns, energy etc.).

9. How to tackle these challenges?
A Livework Case for Servitization

10. Differentiating the
In 2014 Kone targeted ambitious growth targets for their services
business. To do this Kone needed to differentiate their offer in the
market and re-think their sales approach to grow their business.
Working across four European countries Livework helped Kone define
a new maintenance offer and create a consultative sales approach.
This offer and approach has lead to higher sales conversions, new
digital sales and service tools and the streamlining of back office work
driving efficiency.
“Truly customer
centric insight lead to
higher quality of
concept. Collaboration
with management was
high and effective
Integration with
business teams much
better than other Kone
design projects”
Ralf Thierling , Head of Maintenance
Services
Kone, Europe
maintenance service offer

11. Prototyping & testing
Set principles Design new offer
Implementation

12. And now...
Our hunger for knowledge concerning servitization is far from satisfied. We were very much inspired
by your stories and would like to continue the conversation. Let’s keep sharing insights and explore
new business models, collaborations, strategies, systems and ways of working together.

13. To Conclude.
We want to thank all the participants of the wonderful evening for their enthusiasm and contribution.
Servitization will be on the business agenda for the foreseeable future. Using design thinking can
bring another level of capabilities to organizations by bringing in the crucial human perspective that
makes any endeavor towards services more relevant.

14. Want to know
More?
Published White-papers
The results of Anna’s graduation
project for Livework are published
in three white-papers. Find them on
Livework’s website:
https://www.liveworkstudio.com/
whitepapers/servitization/
Presentation & Drawings
This presentation and scans of the
beautiful drawings can be found on
Livework’s website:
https://www.liveworkstudio.com/
collections/servitization-is-the-new-
normal/
Get in Touch!
Do you want to sit down with
Livework? Please give us a call
Melvin Brand Flu
melvin@liveworkstudio.com
+31 655 767 278
Erik Roscam Abbing
erik@liveworkstudio.com
+31 624 518 462
Anna van derTogt
anna@liveworkstudio.com
+31 655 968 367