This document summarizes a literature review on the servitization of manufacturing. It defines servitization as manufacturers shifting from selling products to selling product-service systems. The review analyzed over 50 publications on servitization from 1988-present, finding that servitization provides financial, strategic and marketing benefits but also poses challenges in service design, organization strategy, and transformation. Key research gaps identified include a lack of guidance for companies implementing servitization and a need to group academic contributions in this field into a single document.

1. The servitization of manufacturing
A review of literature and reflection on future
challenges
T.S. Baines, H.W. Lightfoot, O. Benedettini and J.M.Kay
Cranfield University, Cranfield, UK
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2. Index
1. Abstract
2. Introduction
3. Research programme
4. Analysis of the literature
5. Key findings
6. Conclusions and implications
7. References
8. Personal evaluation of the paper
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3. 1. Abstract
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4. 2. Introduction
Definition of servitization What?
(Vandermerwe and Rada, 1988) Who?
Traditional manufacturing firms moving to servitization
 Where? To catch
Justification of the research  Why? the
reader’s
Related topics of research e.g.: PSS attention
Short summary of the methodology How?
Conclusion of the introduction
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5. 3. Research programme
3.1. Aim, scope and questions to guide research
3.2. Search strategy, results and analysis
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6. 3.1. Aim, scope and questions to guide
research
Purpose of this review
IDENTIFY, INTERPRET AND SUMMARISE THE LITERATURE
CURRENTLY AVAILABLE ON SERVITIZATION
Most relevant publications in this review:
Vandermerwe and Rada (1988)  concept of servitization
Wise and Baumgartner (1999) traditional manufacturing to
product-related services
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7. 3.1. Aim, scope and questions to
guide research
Formulated questions for guiding the research:
What?
How?
Where?
Who?
Why?
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8. 3.2. Search strategy, results and
analysis
1) - Identification of relevant data sources
- Selection of time frame
- Keywords
150 articles, reports and books
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9. 3.2. Search strategy, results and
analysis
2) Eliminate duplicate results
49 documents
3) Check if the titles are relevant to this work
4) Check references: the list increased to 58 publications
5) Read the abstracts of the selected articles and, if
they are relevant, read the whole text
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10. 3.2. Search strategy, results and
analysis
Analysis supported by mind-mapping techniques in
which the principal ideas and contributions are
established.
Example of a
mindmap:
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11. 4. Analysis of the literature
Wide range of research papers on servitization since
1988
Papers reviewed: 40% from the USA, 20% from the
UK, 15% from Switzerland and 5% from Western
Europe
Different topics covered: divided into different
groups according to their corresponding themes
Case studies: Inductive and deductive
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12. 4. Analysis of the literature
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13. 5. Key findings
5.1. Defining “servitization”
5.2. Evolution of servitization
5.3. Features of servitization
5.4. Drivers of servitization
5.5. Challenges in the adoption of servitization
5.6. Industrial examples of servitization adoption
5.7. Previous research aiding in the adoption of servitization
5.8. Future research challenges for servitization
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14. 5. 1. Defining “servitization”
“Innovation of an organisations capabilities and
processes to better create mutual value through a shift
from selling product to selling PSS (product-service
system).”
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15. 5. 2. Evolution of servitization
- Increasing number of papers from the USA and
Western Europe
- Principally in business and managerial publications
- Authors tend to be from operations, services and
business fields
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16. 5. 3. Features of servitization
- Servitization positioned on a product-service
continuum ranging from products with services as an
“add-on”, to services with tangible goods as an “add-
on” .
- Customer centric strategy to fulfil his/her current
needs and requirements.
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17. 5. 4. Drivers of servitization
- Financial drivers e.g.: revenue stream, profit margin
- Strategic drivers e.g.: competitive opportunities
and advantages
- Marketing drivers e.g.: customer
relationships, product differentiation
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18. 5. 5. Challenges in the adoption of
servitization
Servitization presents challenges for:
- service design,
- organisation strategy and
- organisation transformation.
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19. 5.6. Industrial examples of
servitization adoption
- Large companies whose outputs are high-value capital
equipment.
Examples: Alston (train and ship manufacturing),
Rolls-Royce (car manufacturing)
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20. 5.7. Previous research aiding in the
adoption of servitization
- Lack of guidance, tools or techniques that might help
companies to adopt and successfully implement
servitization.
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21. 5.8. Future research challenges for
servitization
- Service design
- Organisational strategy
- Organisational transformation
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22. 6. Conclusions and implications
58 papers directly related to “servitization”: 8 key
findings
Definition
Authors mainly from operations, services and
business fields
Extremely close relationship between servitization
and PSS
Servitization examples
Very little literature for practitioners
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23. 6. Conclusions and implications
Still significant challenges that have to be faced
Effectiveness and efficiency: manufacturers need to
know how their customers perceive and value their
services
One community of academics
Contributions in this field need to be grouped together
in one document review
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24. 7. References

25. 8. Personal evaluation of the paper
Well-structured
Easy to follow (to read)
Interesting and, therefore, entertaining reading
material
Complete bibliography/ database for papers related
to the topic
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26. Thank you for your attention
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