Making the shift to services
More and more companies have come to realise that their customers value not just the products they offer but also the services – or ‘solutions’ – they can provide. Services are increasingly seen as a key differentiating strategy. But developing an effective servitization strategy can be challenging because the processes and principles are very different to those of traditional manufacturing.
For manufacturing firms, making the shift to services represents a major opportunity, but also a challenge.
One of the key differences is that companies need to adopt new ways of working not only with their customers but with their service-delivery partners. Service solutions tend to be more complex than a single company – particularly an SME – can deliver by itself. Instead, it may have to rely on a network of firms acting as a ‘business ecosystem’ in which former competitors may become new delivery partners.
For companies who have already made the shift to services, or are considering doing so, we have developed a structured approach to addressing the challenges of servitization. This is based on a major research programme carried out by University of Cambridge academics in collaboration with some of the world’s leading businesses. It addresses issues such as:
- Mapping complex ecosystems to understand how they work and where new opportunities may lie
- Moving from a product- to a more service-based business model
- Measuring your service performance using KPIs.
We can work with you to:
- Assess your business’s current capabilities and readiness for introducing a service component into your business model
- Carry out ecosystem mapping that will underpin your understanding of the market and service delivery opportunities
- Inform and support your business transformation.