Servitization
Servitization and new strategies for enterprises
ASAP contributes to enterprise innovation and the shaping of a more sustainable and resilient economy through the principles of servitization and the development of services in enterprises.
The term “servitization” refers to the integration of advanced services into customer offerings as added value over individual product offerings.
It thus concerns the transformation process of the manufacturing enterprise that, for strategic purposes, offers advanced services and the enrichment of products with integrated services.
The result is a greater perception of value on the part of the customer, who obtains a more complete and articulated experience, establishing more efficient and lasting relationships.
The Economic, Social and Environmental Wellbeing of the Outcome Industry
Digital servitization plays a key role in the evolution of enterprise business models.
At ASAP, we believe that servitization can contribute to the development of a new model of industrial economy (Outcome Industry), based not on selling products but on striving to achieve valuable outcomes for all stakeholders.
From this perspective, servitization contributes to increasing people’s well-being and economic, environmental, and social sustainability.
Therefore, it proves to be an essential tool in responding to the current needs for change imposed by the market and to produce stability and competitiveness in the long run as well.
The benefits
The servitization for the economy and industry
The benefits of servitization are considerable both for business specifically and more generally for social, economic, and environmental impact. Some of the major benefits of developing integrated and advanced servitization in enterprises include:
- Differentiation from competitors: offering an integrated package of products and services allows the company to satisfy the customer with an added value that distinguishes it from its competitors' offerings.
- Customer loyalty-building: customers perceive the higher value of the offering and become dependent on the long-term services provided by the company, establishing stronger and longer-lasting relationships.
- Resource optimization: companies can make the most of their products by reusing them or extending their useful life through maintenance, repair, or upgrade services. In this way, they reduce waste in line with the principles of a sustainable and circular economy.
- Cash Flow Stability: revenues become recurring and predictable as they are based on periodic and regular payment patterns. This also secures the company from crisis and demand shocks.
- Gathering data and information to improve offerings: the ongoing relationship with customers allows them to get to know them in-depth and collect useful data on their preferences and habits. In this way, companies can personalize products and services and further improve the customer's perceived experience.
Added to these is the creation of an economic model that puts the customer and the person at the center to offer value rather than exclusively selling products. A model that allows for greater versatility and steady, sustainable growth.
What are the applications of servitization?
Servitization applies to every industry sector, for example:
- In the automotive industry, manufacturers are also providers of mobility solutions with long-term rental formulas.
- Among plant and machinery manufacturers, with offerings called "Equipment-as-a-Service".
- In the heating, power, and gas sector through "Heat-as-a-Service" offerings.
- Among appliance manufacturers with "Pay-per-wash", where the dishwasher or washing machine is rented by combining the supply of soaps and detergents.
Thus, servitization enables a shift from a product-centric industry to a business that provides integrated solutions to meet customer needs in a customized, efficient, and effective manner.
Learn about all our activities in servitization or contact us for information.