PACKAGE DEALS
According to the Advanced Institute of Management , one third of large manufacturing firms are now ‘ servitised ’. In the US , that figure is nearly twice as high at sixty per cent . And here in the UK , where ninety nine per cent of business is generated by SMEs , around forty per cent of manufacturing companies are now thought to be servitized .
Profitable choice The reason for such wide spread adoption ? It ’ s profitable . According to an Aston University study , servitisation delivers sustained annual growth of five to ten percent ,
“ Servitisation delivers sustained annual growth of five to ten percent , and reduces costs by up to 25 to 30 percent ”
– Mark Homer , VP Global Customer Transformation and reduces costs by up to 25 to 30 percent . Adopting a service outcome approach is a game changer . It not only brings businesses closer to their customers , but also helps to effectively lock out competitors because companies have an ongoing service relationship with their suppliers rather than a single transaction .
Major companies such as GE , Xerox , Coca Cola , Rolls Royce and Philips are well documented in their commitment to transforming their service strategies to an outcomebased approach , and in the next two to five years , I think it will become the de-facto business model for almost every business , regardless of size .
IoT and servitisation lets many kinds of companies shift from selling products to selling services based on those products . Your decision then , as a business or as a manufacturer is not whether to adopt this model , as I believe it will become inevitable . Focus instead on how you can transform ( or in some cases establish ) your services department , empower your field service technicians with the right skills and field service management platform , and align your organisation .
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