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.
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.