A recent survey has shown UK manufacturers are increasingly moving their businesses from being purely product centric to incorporating new service offerings to deliver business growth and new revenue streams.
A clear majority (72%) of British companies surveyed reported being committed to the implementation of manufacturing service business models, with 41% having already done so.
Over 70% of these ‘first movers’ reported achieving benefits from the new business models, which is encouraging the next wave of ‘fast followers’. Close to 77% of UK manufacturers yet to embark on servitization expect to be benefiting from it by the end of 2018.
According to the report, the availability of new tools to support growing product complexity, are encouraging manufacturers to embrace ‘servitization’ in order to deliver greater customer value and achieve higher margins through recurring revenue streams.
Servitization is a transformational and competitively disruptive business model for manufacturers – moving from a focus on products, production and transaction business, to one a more service-centric model.
It requires manufacturers to find new ways to connect their business, predict service and have the insight to respond to customer needs. By shifting to a more valuable and richer service-centric model, manufacturers can grow, create new revenue streams, increase margins and mitigate risks.
Want to know more?
On the 5th of July at 11am, The Manufacturer will be holding a webinar that will take an in depth look at the findings of the Servitization Report – the enablers, barriers and the transformational journey.
The webinar promises to provide a detailed look at Servitization and will also feature insight from Simon Green, Director of Digital Platform, Processes and IT at KONE. Simon will share his transformation story of how KONE, a leading manufacturer of elevators and escalators, has driven growth by turning itself from a product business into a connected and intelligent services business.
“Customer expectations have changed,” Simon Green, KONE’s director of digital platform, processes and IT, told the audience at Salesforce World Tour 2017 in London last week. “The elevator is no longer the product. Today, people buy the experience. For us, that’s an opportunity.”
In addition to this exclusive insight, everyone that registers for the webinar will also receive a free copy of the upcoming report.
Click here to register for the webinar now.