May 02, 2016
The new kid on the block: Servitization
By: Mark Johnson

Gone are the days when a company could consider only other organizations that offer a similar product or service as its competitors. Enter the concept of servitization! Now, manufacturers and sellers of industrial goods are able to gain a new competitive edge by shifting their offerings to include a bundling of products and services into an integrated offering that provides a broader value proposition to their customers.  

Deploying servitization within an organization begins with gaining a complete understanding of what the customer wants. This allows the organization to simplify the process, provide the service, and offer access to technology instead of requiring the customer to invest in the technology itself. Once these services are added, organizations can continue to evolve and improve their original product performance, using the data collected from customer use via advanced information technology techniques.  

Take, for example, a multinational company that operates in the civil and defense, aerospace, marine, and energy and power systems industries. This company is primarily known for building engines for vehicles within each of these sectors. Within the aerospace industry, this company created a package for its customers that allows for the rental of an aircraft engine. The users pay per the amount of time the engine is in flight. While the engines are in use, this company is able to collect data on the performance of the engine. This data is then analyzed and used to predict potential problems and improve maintenance. This is a prime example of how servitization can successfully be implemented within an organization that is offering a product outside of its core competency.  

Is your organization not realizing its full profit potential or falling behind in terms of competitiveness? In the courses What Is Servitization, Value through Solutions with Servitization, Process Implications of Servitization, and Long-term Profits through Servitization  Accenture Academy shows how deploying servitization initiates greater profit and competitiveness and allows an organization to move up the value chain. Aerospace, document, and power tool manufacturers are among the organizations that have deployed servitization to take advantage of greater profits, enhanced competitiveness, and faster innovation. The course will help you discover what servitization is, how processes change, and how to generate long-term profits from it.

About Accenture Academy

Accenture Academy offers proven, cost-effective learning solutions for a more versatile workforce and a more agile organization. We provide a flexible learning approach that helps your people be more versatile and your entire organization be more agile in the marketplace. Curriculum includes Supply Chain Management, Finance, Procurement, Analytics, Leadership & Management and Specialty Skills.


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