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Best Practices and Strategies for Servitization Implementation

Best Practices and Strategies for Servitization Implementation


The process of combining digitalization with goods to develop new service offerings is known as the servitization solution for manufacturing. Through the utilization of data from linked goods, servitization can enhance current offers by providing end customers with free, data-driven insights. Servitization also enables fee-based services, such as consultation and sophisticated analytics-based data insights.

In this article, we’ll examine the strategies and best practices for implementing servitization in manufacturing and briefly discuss why it is important for manufacturers.

What is Servitization in Manufacturing?

In the manufacturing industry, servitization refers to the transition from product sales to service provision. Consider it as a value-added package in which you provide supplementary services to extend the product’s useful life in addition to the tangible item.

In the later stages of the servitization process, you might not even sell your product; instead, you might only use it as a tool to provide an output or function that meets your intended value requirements. In the industrial sector, where service-oriented methods are replacing conventional product-centric models, this tactic is becoming more popular.

Why is a Servitization Strategy Important? 

Servitization may be quite advantageous for a manufacturer’s business, in addition to meeting client expectations. By adopting this new business strategy, manufacturers can ensure recurring income streams and increase the potential for cross-selling by fostering connections with their end users.

Best Practices for Implementing Servitization in Manufacturing

The best strategies for servitization comprise providing equipment-specific services, such as maintenance, throughout the product’s lifecycle. Servitization is positioned by several field service providers as an outcome-based service offering. Most suppliers use various pieces of equipment that they have acquired over time to co-opt them into a customer’s servitization bundle. Here are some best practices that manufacturers can implement:

Create Solutions and Provide Maintenance Services

By doing this, your items will be seen as a means to an end and solutions, enabling you to provide free upkeep and consulting services related to your solutions. Monitor consumer feedback, market trends, and servitization-related performance measures. Continue to assess and improve your service offerings in light of the information you’ve gained.

Utilizing Technologies

Use cutting-edge technology, such as the Internet of Things (IoT) and Machine Learning, to monitor product usage, get more consumer insights, and offer services like predictive maintenance in addition to increasing productivity and streamlining processes. Think about using predictive analytics to anticipate the future service needs of your clients. Being proactive will enable you to address possible issues before they worsen, allowing you to anticipate client demands and exceed their expectations.

Train Your Staff

Give your staff the tools they need to deliver exceptional customer service and teach them to approach problem-solving from a service standpoint while developing new products or solutions. In this manner, you can ensure that your whole company adopts a service-oriented perspective. This means prioritizing the demands of your customers and making constant improvements to the services you provide.

Why Should Manufacturers Care About Servitization?

The integration of servitization into a business strategy for equipment production offers evident advantages. Let’s look at them below:

Selling a Product Together with a Solution

Traditionally, the industrial sector marketed its goods directly to consumers. Manufacturers used to care more about their services than they did about the effectiveness and quality of their products. Customers now want a complete solution to their problem, not just a product, since the industry has gotten more complicated and the need for robust service programs has become more common.

Increased Financial Stability

Manufacturers’ income streams grow more stable as they sell their client’s long-term contracts that include comprehensive servicing because service agreements raise the likelihood of recurrent business and loyal customers, as well as upsales.

Improved Rate of Customer Retention

Manufacturers are discovering that servitization allows them to retain a higher number of consumers. This is mostly because they know the most about the equipment that their customers own. Manufacturers and their dealers are the ones with the keys to the data that increases the efficiency of their client’s operations since they are continuously watching and monitoring their technicians, supplies, cars, and systems.

How Can Servitization Software Help?

Servitization employs remote asset monitoring and predictive maintenance. A well-functioning field service platform is necessary for the model’s effective deployment. The prerequisites include IoT and data analytics, which are managed via service management software.

Synchronizes Inventory

The manager can examine inventory levels using a service management program, ensuring that there are enough spares for dispatch. Auto-synching inventory levels with finished work allows spare components to be reordered on time and avoids hold-ups.

Make Invoices Automatically

Field management software shortens the time to payment, facilitates contactless invoice distribution, and allows for spot invoicing. The transition to more efficient billing has led to increased total revenue and enhanced client satisfaction. Customers are also given a predictable cost model through servitization, which lets them schedule which services they would use.

Produces Dynamic Reports

When an organization uses data as a strategic tool to enhance the customer experience, it is said to be implementing servitization. An integrated field service management platform’s data collection and analytics process will produce insights that serve as the foundation for new pricing and business models. Enhancing overall control and detecting issues early on is achieved by integrating analytics and reporting with the operational dashboard.

Simplifies the Inspection Process

Frequent inspections are necessary for servitization. To guarantee that field representatives follow protocol and provide accurate reports, the finest field service management software automatically creates inspection forms and checklists.


In conclusion, successful servitization deployment requires a comprehensive strategy that incorporates customer-centricity, innovation, digital transformation, organizational agility, and strategic collaboration. In an increasingly service-driven market, businesses may generate value for consumers, seize new opportunities, and achieve sustainable development by implementing best practices and strategies that are customized to their specific business environment.

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