Magazine

A Servitization Mindset:
Five guidelines to stimulate a shift from a product to service focussed mindset

Manufacturers in business to business environments have started to realise that clients are less interested in products and their features, rather preferring service solutions that add value to their processes. To successfully deliver those service solutions, manufacturers require a deep understanding of their clients and their particular contexts.

Manufacturers need to learn how to stimulate the right culture to support co-creative development and delivery of service solutions. In this third and final white paper about servitization, we describe the necessary culture change and offer five guidelines for companies that want to shift towards a culture that enables Servitization.

Challenges of creating a service mindset

Often manufacturers fail to translate the new service strategy into real outputs. These organisations are struggling to develop the ability to design and deliver service offerings that match their clients’ needs. The reality is that a product and feature focus hinders the ability to become a successful service provider. Employees need to be empowered to fulfil their new role in the co-creating process of development and delivery of service solutions. Here we provide five guidelines that help to stimulate a new mindset across the organisation.

From a product to a service mind-set

For a servitization strategy to succeed, it is important to understand that the value for the client lies in the efficiency and effectiveness of the offered solution rather than the product’s features. The product is merely a means to deliver the solution for the client. Employees lacking a service mindset struggle to recognise the added value of a service solution and are unfamiliar with the overall concept. Employees prefer to sell clients a well- known, and thus less risky, value proposition. Without investing in mind-set shift, a servitization strategy can fail to return the expected results.

Most colleagues think the service business unit only exists to justify the difference in price with competitors.

New service provider in the shipbuilding industry

A mind-set shift in an organisation can galvanise structural change in which the mission of the firm is transformed and some fundamental aspects of the corporate culture are altered, including the underlying basic shared values. Whereas product manufacturers often focus on the performance and efficiency of the physical products, service organisations focus on the needs of clients. Service organisations are empathetic and flexible as this nourishes the relationship with the client and enables them to customize their offerings to suit each client’s specific goals, situation or processes.

>> Download the full whitepaper here <<

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