The Manufacturer and Microsoft have published a new servitization white paper, combining research conducted by both The Manufacturer and Aston Business School’s Advanced Services Group, and the insights gained from an exclusive roundtable event hosted with Microsoft.
You can download a copy of the report by clicking here.
No one could argue that UK manufacturers aren’t facing tough conditions, and indeed have done for some time. Geopolitical and economic fluctuations aside, not to mention the ongoing skills shortage, advanced technologies are having a profound impact, fundamentally reshaping the industrial landscape so much so that it bears little resemblance to that of just a decade ago.
Whenever an industry undergoes such widespread transformation, there will always be those who face such change with excitement and relish the new opportunities it presents. Conversely, there will also be those who shy away from the prospect, preferring to focus on business as usual, to endure rather than disrupt. Yet, choosing the latter option as a long-term business strategy has become increasingly imprudent, with start-ups and incumbents alike looking to leapfrog intransigent rivals.
Those truly opting for disruption and innovation aren’t doing it on merely a new product development perspective, rather something far more ambitious. The shift from a purely product-led, ‘make and sell’ business model is being progressively superseded as manufacturers increasingly adopt and embrace servitization – building long-lasting, entrenched customer relationships rooted in service propositions, offering an ongoing capability rather than a standalone product.
Encouragingly, manufacturers’ awareness of servitization has grown significantly over the past 18 months, both in the use of the term itself and an understanding of what it represents. However, upon learning of the concept, the first questions to be answered are still; how does servitization apply to my business and, how can I adopt it? Neither have become any easier to answer as servitization represents something different for every business and sector; there is no ‘silver bullet’ solution.
With the conversation having matured from merely what is servitization, to how can I adopt the concept, a new white paper from The Manufacturer and Microsoft explores servitization in the most practical of senses.
If your business has already made the first step, or is considering embarking on its own servitization journey, this white paper is vital reading for you and your business’ decision-makers to question your existing processes and ensure you get the most out of your transformation journey.