Transforming Tomorrow A Beginner's Guide to Servitization
What is servitization? Could it be the future for more businesses? How does it link to productivity and sustainability? And why is it spelt with a z? We answer at least three of these questions as we explore an area that is relevant to giant global corporations and small businesses alike.
What if, instead of a crane, you charge by the number of lifts it carries out; if instead of selling a physical tyre, you provide a certain amount of miles; if a company offers you so many air miles from an engine? These are all examples of servitization that already exist – it even applies in industrial food packaging.
Lancaster University Management School’s Professor Andreas Schroeder is a servitization expert, working with numerous firms on how they can change their operations to move to a servitization model to benefit their operations, and others on how they can use their data in new ways.
He tells us about the key differences between products and services; how servitization blurs the boundaries on relationships with customers and suppliers – are they now more like partners?; the differences between rental agreements and servitization; and why it can be easier for smaller companies to pivot their operations to this model.
Discover some of servitization’s success stories, how it can affect a company’s carbon footprint and align profit with sustainability, how it encourages an operation to design and create products for service, repair and circularity, and how data collection, analysis and optimisation can identify where value opportunities lie and improve practical operations.
Paul lets his anger at American spelling take over; Jan discovers a new friend who can put on a Kiwi accent; and everyone becomes fascinated by tyres, hydrogen-powered diggers and aeroplane engines.
Find out more about Andreas and his work here: https://www.lancaster.ac.uk/lums/people/andreas-schroeder