It’s only March, and 2020 has already been a rollercoaster for the service and manufacturing industries. With a global health pandemic and a downward economic outlook, service leaders are fine-tuning plans and forecasts in the midst of daily operational changes. One area that is worth the time and attention right now is a reality check on how your organization is leveraging servitization.
What is servitization?
Servitization isn’t new, predating the cloud model of recurring revenues. The classic case study examples are Xerox with copy machines and Rolls-Royce and jet engines, where manufacturers sold the output of their machines. In the last decade, however, it’s become more widely adopted as revenue plans shift towards service offerings and technology advances allow for more timely maintenance.
The promise of a steady revenue stream provided by a mix of products and services is appealing in times of economic uncertainty. But success depends largely on the strength of service teams. Here’s how to translate best practices across your team.