Servitization Model (PowerPoint PPTX Slide Deck)

DESCRIPTION

This product (Servitization Model) is a 30-slide PPT PowerPoint presentation slide deck (PPTX), which you can download immediately upon purchase.

Traditionally, manufacturers focus solely on the product sale model.

However, the advancement in technology and Digitization has opened a number of avenues for manufacturers to expand further. Intelligent manufacturers have already started using Internet of Things (IoT), Machine Learning (ML), Artificial Intelligence (AI), and other technologies to create smart solutions and services that they are selling directly to consumers.

This PowerPoint presentation talks about the Servitization Model, a framework that emphasizes the Transformation of product-focused businesses into service-oriented organizations. It involves offering services and solutions alongside traditional products to meet evolving customer needs. To put it another way, Servitization is the shift from selling products for ownership to providing them as part of a service—through renting or on a pay-per-use basis.

Servitization comes in 4 different models:

1. Service Improvement – Service improvement denotes an organization's commitment to making sure that its services and products are consistently dependable and accessible for customers when they need them.

2. Customer Operational Improvement – This model refers to shifting focus from providing products to enhancing the operational effectiveness of the business through value-added services.

3. New Product Capabilities – This model involves extending the value proposition beyond the physical product into more comprehensive solutions that include advanced capabilities, additional functionalities, and benefits delivered as services.

4. New Revenue Streams – This model allows businesses to tap into ongoing, often more stable sources of revenue, enhancing financial sustain-ability and growth potential.

Each of these Servitization models is discussed in detail, including case study examples. Additional topics discussed include Servitization challenges, 10 drivers of Servitization, Open Loop System Manufacturing, among others.

This PowerPoint presentation on Servitization Model also includes some slide templates for you to use in your own business presentations.

Source: Best Practices in Business Model Innovation, Manufacturing, Service Design PowerPoint Slides: Servitization Model PowerPoint (PPTX) Presentation Slide Deck, LearnPPT Consulting

PPT SLIDE DEEP DIVES

Transitioning to a Servitization Model: Key Insights

This PPT slide outlines the complexities and significant implications of transitioning to a Servitization model, emphasizing value creation through service delivery linked to a product. It highlights that revenue generation may not stem from product sales alone; instead, profitability arises from integrated services. The visual representation categorizes Servitization into 4 distinct models, which include Service Improvement, Customer Operational Improvement, New Product Capabilities, and New Revenue Streams.

Each model plays a crucial role in the overall transformation process. Service Improvement focuses on enhancing the quality and efficiency of services offered. Customer Operational Improvement aims to optimize the client's operational processes through tailored services. New Product Capabilities suggest the development of innovative offerings that complement existing products, while New Revenue Streams indicate the potential for generating income through new service-oriented initiatives.

The slide stresses that organizations must navigate a multitude of changes—strategic, operational, financial, and regulatory—to effectively implement a Servitization model. This necessitates careful planning and resource allocation, underscoring the importance of Change Management in the transition. The message is clear: success in this model requires a holistic approach that encompasses various facets of the organization, ensuring alignment across all levels.

For potential customers, this slide serves as a critical reminder of the multifaceted nature of Servitization. It prompts consideration of how their organization can adapt to these changes and leverage service offerings to enhance value for both the business and its customers.

Key Drivers of Servitization Transformation

This PPT slide outlines ten key drivers of "servitization," a strategic shift from product-centric to service-oriented business models. Each driver highlights a distinct factor influencing this transformation.

Customer demand and expectations are at the forefront, indicating a growing preference for leasing or subscription models over outright ownership. This shift emphasizes the value customers place on convenience and the enhanced benefits that services provide. Cost savings follow closely, as servitization can help customers reduce expenses by allowing them to avoid the full costs of product ownership.

Improved service quality is another critical driver, as it enhances operational processes and customer satisfaction. Organizations can differentiate themselves through unique service offerings, which is essential in a crowded market. Technological advancements play a pivotal role, enabling companies to analyze customer usage patterns and implement predictive maintenance, thus improving service delivery.

Economic benefits and revenue growth are significant, with services often yielding higher margins and more predictable revenue streams compared to traditional product sales. Sustainability is increasingly relevant, reflecting a societal shift towards environmental consciousness. Servitization supports recycling and reduces material consumption, aligning with modern corporate responsibility goals.

Globalization and market expansion are also key, as servitization allows businesses to penetrate new markets more effectively. Continuous innovation in business models and products is facilitated through this approach, ensuring organizations remain competitive. Finally, building customer relationships is emphasized, as ongoing interactions foster feedback loops that help meet evolving customer needs.

Overall, this slide presents a comprehensive view of the factors driving the servitization trend, underscoring its importance for organizations aiming to adapt and thrive in today’s market.

Enhancing Customer Operations through Tailored Services

This PPT slide outlines the concept of Customer Operational Improvement within the Servitization Model, emphasizing the shift from traditional product offerings to enhanced operational effectiveness through value-added services. It highlights that the success of service providers is closely tied to the improvements experienced by their customers. This involves offering tailored solutions that integrate products with services such as maintenance, training, or consultancy, aimed at optimizing performance in specific operational contexts.

The slide mentions the role of IoT and data analytics, which enable service providers to collect and analyze operational data from customer sites. This capability allows providers to deliver informed advice on process improvements, waste reduction, and productivity enhancement. Continuous support and collaboration with customers are essential to adapt services as operational needs evolve, ensuring that the solutions offered remain effective over time.

It also notes the importance of performance-based contracts, which help align the interests of service providers and customers by sharing risks and rewards associated with operational improvements. The example provided illustrates how General Electric (GE) employs its Predix platform to optimize industrial equipment performance. This platform allows customers to monitor equipment in real-time, predict maintenance needs, and enhance operational efficiency through tailored insights.

Overall, the slide conveys that a deep understanding of customer processes and challenges is crucial for delivering meaningful improvements. This approach not only strengthens customer relationships, but also fosters loyalty by directly contributing to their operational success.