Manufacturing companies focused on more advanced service offerings experience higher revenue growth and margins. according to new research.
The survey carried out by Noventum Service Management found that although fewer companies are focused on offering advanced services such as integrated solutions and customer business-related services, they are achieving higher growth than companies on product expansion.
Despite nearly all of the 196 companies questioned focused on expanding product related service offerings, very few of these companies achieved growth rates or saw margins increase.
Hendrik Wacker, services marketing manager EMEA at Hitachi Data Systems, said companies now prefer to consume technology rather than simply acquire it, something he puts down to ‘Capex to Opex’ demand.
“Consequently, many are looking for a way to simplify IT operations and reduce investment,” he said.
“We have concluded that providing managed services to our customers, as a composition of hardware, software, and services building blocks, is the appropriate answer to their demand. As a result, that part of our business is achieving high double-digit growth, year over year”
Additionally, Noventum has identified the four key growth drivers to maximise outperforming market competitors as:
- Pursuit of all growth strategies. Including advanced services.
- Innovation for customer value. Being more outside-in helps companies to better understand customer needs and hence offer the most value to their customers.
- Agility. Companies require the capability, dedication and culture to rapidly innovate on a continuous basis.
- Strategic alignment between service- and corporate values. Reducing internal conflict and increasing company wide support in the chase of achieving service business objectives.
