12.10.20 -- The #1 Mistake In Monetizing Your Service Transformation

Today’s manufacturers and service organizations have a wealth of initiatives underway to improve, evolve, and transform how they leverage service as a strategic differentiator and seize the opportunity that service provides. Top of mind for these companies is determining how to serve customers in a way that delivers increased profit margins and revenue growth. Unfortunately companies can fall disappointingly short when it comes to execution.

Manufacturing firms across a variety of disciplines have been looking for ways to implement more service-oriented solutions into traditional manufacturing processes. This is true for organizations that work with capital and industrial equipment as much as it is for any other manufacturer, but for industrial manufacturers, there are a variety of unique challenges that must be considered.

Manufacturers of technical and office equipment have embraced the importance of making service a component of their solutions. Offering service alongside traditional business practices makes a lot of sense for these companies — the overhead is low, the opportunity for subscription-based selling naturally increases, and there is implicit value in taking customer relationships beyond the transactional.

Companies have realized the strategic and monetary value of service as a key differentiator and most are at some stage of the journey to equip their businesses to seize the service opportunity. A lot of articles are focused on Servitization and the journey to outcomes-based service, and the reason why is twofold: first, the opportunity they present is immense and, second, the undertaking of these journeys is no small feat. 

Carlsberg is one of the world’s leading brewery groups with more than 140 brands in its beer portfolio. Carlsberg’s service business provides installation, repair, and maintenance to its customers in the hospitality industry. In its highly competitive industry, Carlsberg is tasked with seeking ways to deliver precise consistency as well as continually finding ways to differentiate itself.