The expectations of industrial companies’ customers are changing. Customers want to know the answer to questions like: How can I augment the lifecycle of my existing assets? How can I make my assets more flexible to address increasing requirements for speed and personalization? How can I get the product but only pay for the value of services I receive? They are less interested in buying a product than an outcome and increasingly find value in services and support. As a result, services have become a critical means for companies to differentiate themselves as well as stabilize cash flow, lower volatility and enhance resilience.
We surveyed 748 industrial service business executives from across 14 countries to investigate the best service management approaches that can be applied to successfully transform and grow your future service business. The research revealed a stronger focus on service-driven business models has also helped industrial companies better balance pre- and post-COVID-19 economic challenges. With remote services in demand, those with a strong market position in digital-driven services flourished. More than 60% of respondents said their service business accelerated during the pandemic.
Even before COVID-19 hit, industrial equipment companies knew that service transformation could help differentiate their businesses in the marketplace, but many struggled to find the right path.