This document discusses the concept of servitization, which is the process of adding services to complement traditional product offerings. It provides examples of companies that have adopted servitization strategies, such as a paint company that offered advice and installation services in addition to paint products. The document also discusses why companies adopt servitization, how it can help with differentiation, and how companies can develop servitization strategies including setting up customer information systems, organizing service delivery, and empowering employees.

1. Servitisation Prof. Dr. Ir. Roland Van Dierdonck [email_address]

3. MOST PRODUCTS ARE A BUNDLE OF GOODS and SERVICES 100 % Good e.g. Base chemicals 100 % Service e.g. consulting

4. Servitisation: What? - Redefinition of the “product offering”: from focus on the “hard core” to a focus on “solving the problem of the customer” -From the manufacturing core to the augmented products -Servitisation is more than adding traditional service elements such as .

5. Colora: Selling Solutions - Originally small firm produced paint sold in paint shops and DIY, but could not compete with large multinational companies -Realized that customers are not just looking for paint; they are looking for help in solving a problem. -Set up a chain of franchisee operated paint shops -Sold paints, but employees trained to help: - advice on the best paint for your needs - if needed come to your home to give advise on the spot.

7. Servitisation: What Fourth Stage: beyond manufacturing .

9. SERVITISATION

11. A mass customized barbie doll … My Twinn: Personalized Gifts Including Twin Collectible Dolls

20. The service concept Making the intangible tangible A service concept is a blueprint that communicates to employees what service they should give and to customers what service they should expect to receive. Van Looy, Gemmel and Van Dierdonck, Services Management: An Integrated Approach, FT Prentice Hall, second edition, 2003 A service concept is the mental picture that is held by customers, employees and shareholders about the service provided by the organisation Johnston and Clarck, Service Operations Management, FT Prentice Hall, Pearson Education, Second Edition, 2005.

23. Servitisation: A Cure for All?

24. an example for an industrial-resin manufacturer Price of Product On-time delivery Consistence of product perfomance over time Selection of products Level of technical support Frequency of contact with sales representative Service-oriented customers Product-oriented customers Price-sensitive customers Strong positive Deviation from average Source: Study mentioned in Forsuth et al., The McKinsey Quarterly, 2000 Handholders Risk avoiders Basic need customers Design a portfolio of service products

25. 2. Design a portfolio of service products Position service products according to response times and prices level of service Standard High Volume of contracts Handholders Risk avoiders Basic- need customers High Low Price Low High Source: Bundschuh et al., The McKinsey Quarterly, 2003, number 4, pp.3-13

26. Select a coherent model of servitisation to support service products Figure Different models of servitization. (BestServ Feasibiity study 2003)

27. Select a coherent model of servitisation to support service products Source: Bart Van Looy SOLUTION