What is servitisation?

Companies around the world are adopting the servitisation business model. But what exactly is it?

Put simply, servitisation sees companies innovate to compete through services rather than products alone. So, you create value for the customer by adding services to a product. For example, selling maintenance contracts with goods.

Servitisation can also be used to describe where a service replaces a product. For example, contracting equipment to customers rather than selling it outright.

And, while the term is not new, emerging technologies and evolving customer expectations are taking things to a whole new level.

Adapting to a service-centred approach

Today, we are moving from an ownership economy to one where people and businesses get access to everything they need, without the burden of proprietorship. At the same time, technologies such as artificial intelligence (AI) are forcing organisations to redefine the way they do business to meet increased customer demands for 24/7 service excellence.

For service-led businesses, this opens up real opportunities to thrive as long as they have the tools necessary to keep up. To be successful, you cannot afford to keep customers waiting.

Predictive service

The equipment used in business is crucial to operational success. So the servitisation model relies on maximising product uptime. This applies to industrial systems and office-based equipment such as photocopiers and computers.

A reactive, break-fix service model is no longer good enough. Instead, there is a growing demand for better quality service and less equipment downtime.

In response, tech such as sensors, PPM modules and machine learning are being used to enable the pre-emptive repair of equipment before it breaks. Indeed, in 2018, being able to offer a predictive service is becoming a benchmark of quality in the service industry.


Automation is also being used to support servitisation. For example, when it comes to after-sales service, businesses must be able to meet- and indeed surpass- customer expectations.

By using software to perform repetitive tasks, processes are simplified, standardised, and streamlined. So your service teams can spend less time on mundane tasks, and more time on responding to more complex enquires.

Getting value from data

There is more data available than ever before, and that is only going to increase. But in addition to collecting information, service-led organisations must be able to use it to their advantage. It doesn’t matter how much data you have if you can’t use it effectively.

As such, due to its ability to deliver insights and value from big data, the cloud is a true enabler of servitisation.

When we get down to it, to succeed in an increasingly servitisation-focused world, businesses must do more to meet evolving customer expectations at all stages of their journey. This means investing in intelligent solutions and looking at where you can add value and maximise uptime. Ultimately, such changes won’t just enhance the overall customer experience; they will also lead to improvements in revenue and operational efficiency. And that’s got to be a win-win.

Contact us for more information on how our software can help you to exceed your customers’ expectations, keep you ahead of the curve, and boost your bottom line.