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How do processes change when pursuing Servitization?




As organizations transition to a servitization model, various processes must be re-evaluated and redesigned to align with a service-centric operating model. These processes must be quick and efficient to operate at scale; thus, process automation is critical! This article explores the impact of Servitization on order fulfillment, service delivery, customer service, product development, maintenance, and digital products and experiences.


Order Fulfillment: In a servitization model, order fulfillment shifts from delivering products to providing solutions and services that meet customer needs. This shift to a solution-centric model allows organizations to create more value for customers and build long-term relationships. Bundling digital products, such as software applications or online platforms, with physical products provides a comprehensive solution to customers.

Service Delivery: In a product-centric model, service delivery is an afterthought or a check box. Installation, configuration, and ongoing support may be the customer's responsibility. Service delivery is a core component of the overall servitization model. Organizations must provide comprehensive services that address the customer journey, from onboarding to ongoing support. Digital products and experiences can provide customers with a holistic solution meeting all their needs. Service and outcomes will ultimately be more focal than the product when graduating to Equipment as a Service (EaaS).

Customer Service: The difference is being proactive instead of reactive. Proactive customer service ensures the customer is satisfied with the solution while issues are fixed promptly. Digital products and experiences require a different approach to customer service, as they may involve ongoing updates and support. Organizations must proactively address issues as they arise

and provide continuing education and training to ensure customers can maximize the value of their investment. Product, Service, and Digital come together to form an offering around maximizing true potential and driving a customer-centric outcome.

Product Development: When selling products, the focus is on creating new products and features customers want and measuring the technical specifications of competitors. Servitization focuses on creating solutions that meet customers' needs, integrating digital products and experiences with physical products to create a comprehensive solution. Agile organizations respond quickly to changing customer needs and feedback, as the service-centric model requires ongoing evolution and improvement. Finally, EaaS product development focuses on delivering a reliable outcome; long-term performance, modularity, and serviceability become more critical.


Maintenance: Again, the difference is proactive versus reactive. Maintenance is proactive in a Servitization model. Monitoring products and services continuously will identify and address issues before they occur, not after breakage. Digital products and experiences require ongoing maintenance and updates to accommodate technology and customer change. Being proactive and providing ongoing attention and updates assures customers can continue to derive value from their investments.


Digital Products and Experiences: Digital products and experiences are important components of the servitization model. Seamless integration with physical products delivers a comprehensive solution to meet customers' needs. Organizations must be agile in responding to changing customer needs and feedback, as the digital landscape is constantly growing. They must also be proactive in providing ongoing education and training to ensure customers can maximize the value of their investment.

Bring Endowance Solutions into your Servitization discovery if this is a strategy that will suit your business best. You can be confident your competitors are already considering the benefits. We can walk you through them. The future is now.

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