Servitisering

Servitisering is the strategic shift in which a company moves from selling physical products to delivering integrated solutions that emphasize services and customer outcomes. The term is often used interchangeably with servitization and covers business models in which goods are bundled with services, support, and digital offerings to create and capture value.

Key concepts include product-service systems (PSS) and outcome-based contracts. In a PSS, customers pay for function or result rather than owning the asset. The approach is common in manufacturing, machinery, and industrial sectors but is expanding to software and consumer services.

How it works: companies redesign offerings, invest in data, sensors, analytics, remote monitoring, and service capabilities; shift from capital expenditure to operating expenditure; develop service teams and digital platforms; and establish pricing and governance aligned with outcomes.

Enablers include IoT, cloud computing, predictive maintenance, digital platforms, data governance, cybersecurity, and partnerships with customers and suppliers.

Benefits and challenges: Potential benefits are higher revenue stability, improved asset utilization, closer customer relationships, and new value propositions. Challenges include substantial upfront investment, organizational culture change, data privacy concerns, integration with existing sales models, and measuring outcomes effectively.

Adoption varies by industry but is prominent in aerospace, heavy equipment, transportation, and software-enabled services as firms seek to monetize performance and uptime rather than just products.