How can firms create value through servitization?
Using examples as diverse as Rolls Royce, Disney and GE, Professor Andy Neely explains how manufacturing businesses are competing by offering services that support their products, rather than just selling the products themselves – servitization. In this ten minute video, he explains that value can be captured through extending the range of services offered e.g. to support the product throughout its life with spares, servicing and maintenance.
Andy shares lessons learned, including the need for clarity on what services should be offered and with whom to partner. The role of technology in removing cost and improving efficiency is also considered.
Finally, Andy discusses the role of ‘big data’: by collecting a wide range of information, organisations can build a rich picture of their customers and generate valuable insight. Challenges in developing data-based services include those of collection, consolidation and interpretation.
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