Industry surveys have reported as much as 65% of manufacturers globally will be using a service-based selling model as opposed to product-based by 2020.
UK Manufacturing is undergoing a service revolution in terms of what’s being sold and how, as businesses seek to become more responsive to fluctuating customer demands.
The shift to sell services alongside physical product, and the availability of new tools to support growing product complexity, require successful manufacturers to embrace servitization in order to deliver greater customer value and achieve higher margins through recurring revenue streams.
However, there is no ‘one-size-fits-all’ approach to embracing servitization, every business’ journey will be unique, offering its own challenges and opportunities. Manufacturers must immerse themselves completely in the shift in order to extract the greatest amount of value from it.
The transformation requires an organisation to rebuild its processes and integrate greater systems of intelligence gathering across multiple stages to gain real-time insight and drive more informed decision-making.
Where once the story between supplier and customer ended following delivery and payment, the relationship can now be sustained through continuous feedback loops and a variety of after-market services.
The Manufacturer and Salesforce conducted a recent servey to assess servitization’s acceptance within the UK manufacturing community.
The findings from this survey have formed the basis of the new report, which will allow readers to benchmark their organisation compared to others within the UK in terms of progress towards implementing servitization. Additionally, it offers the opportunity to see the successes and specific outcomes peers have achieved with their individual approaches.
The main findings will also be discussed at length in an upcoming webinar, which is scheduled to take place on Wed 5 July at 11am. You can register for the webinar below.