The Rise in Servitization
Peggy and Jeff Winter talk about servitization. He says this concept has become pretty popular in recent years, but what most people don’t realize is it was first described in the 1960s and then nothing really happened much until the 1980s. Now, it means capturing and harnessing the power of data to offer a completely new way of providing value to customers above and beyond the sale of a product through the entire lifecycle.
They also discuss:
How many companies will generate total revenue from digital products, services, and experiences by 2026.
The types of servitization, case studies, and why hardware companies need to rethink their strategies.
The differences between servitization and connected products.
Questions Jeff answers in this episode:
We hear the term servitization being used a lot – what exactly does it mean?
What types of servitization are you seeing manufacturers actually do?
What types of servitization are you seeing manufacturers actually do?
Can you give an example?
How does this differ from connected products?
Sources Referenced:
IDC - Providing Expert Guidance on the Digital-First Strategies Driving the C-Suite Agenda: https://www.idc.com/research/digital-business/digital-enterprise#:~:text=Digital%20transformation%20must%20yield%20to,focus%20on%20measurable%20business%20outcomes.&text=By%202026%2C%2040%25%20of%20the,products%2C%20services%2C%20and%20experiences
IoT Analytics - The top 20 industrial technology trends - as showcase at Hannover Messe 2022: https://iot-analytics.com/top-20-industrial-technology-trends-hannover-messe-2022/
Klaus Friesenbichler & Agnes Agnes Kügler - Servitization across countries and sectors: Evidence from world input-output data 2022: https://www.sciencedirect.com/science/article/pii/S0939362522000760
TSIA - State of Support Services 2023: https://portal.tsia.com/sign-in/portal/report/1DU90DKlG9gFRZRM/the-state-of-support-services-2023
MRO Business Today - Rolls Royce Power by the Hour 2022: https://www.mrobusinesstoday.com/power-by-the-hour/
HBS - Philips Lighting: Light-as-a-Service: https://www.hbs.edu/faculty/Pages/item.aspx?num=55346
