Without evolving into servitization the industry will not be able to compete at global level.
Technologies and new ways of thinking business models are rapidly changing the whole industry world, which has to adapt, and the best way is through servitization.
What is servitization?
It indicates the joint offer of products and services. It is a process involving innovation in both skills and processes of a company, so creating value by moving from selling products to selling product-service systems.
Why going for this transformation?
The main reason, is the convenience: for the producer, it turns into a USP (Unique Selling Proposition, or an exclusive); for the customer, it means combining products and services without having to look for a third party.
At today, it is no longer enough just to sell a product: international competition (hence, global) significantly lowers the profit margins on sales; therefore, it is necessary to offer different services, or the option to rent. It is therefore a question of approaching product to the new mode of “Sharing economy“, thanks to technologies and innovations allowing it even with good profit margins.
Consequently, when servitization applies at industrial level, the relationship with the customer changes: he buys the use of the product, rather than selling it itself. Even for the company the way of billing renews: instead of getting profits from a sale, they come from related services.
Industry servitization advantages
Adopting this new approach implies, for a corporate, several benefits, which include:
- Customer loyalty; in fact, the relationship does not end after the sale, but remains constant in the time.
- wider market; especially for machine tools costs are often quite high, and not accessible o everyone. However, in the case of long-term rental, the cost is considerably reduced.
- Incomes come even from servicing.
- There is a proper and complete knowledge of technical faults and their kind, thus, improving new machineries.
Even the customer will have several advantages, the main are:
- immediately lower costs, in fact, the investment is not as expensive as the purchase.
- There is no risk of obsolescence of the machinery, rather, it has greater flexibility in order to be able to access more innovative products.
- no need to look for an expert technician, as the assistance comes straight from the producer.