A leap across the abyss

Services are crucial to continued growth of Nordic industrial OEMs, but current approaches are stalling. Awareness and action must move from the aftermarket units to the corporate level. In this White Paper, we present four leap enablers that can help companies out of the “Services Catch” and unlock the true shareholder value potential of industrial services.

The services operations of industrial OEMs (Original Equipment Manufacturers) have developed favorably during the last 10 years, but the apparent success has been driven mainly by growth in installed base. Looking forward, companies will need to make a leap to create monetary value from the intangible part of their offerings. Such a leap requires decisions on the highest level, where the insight about value drivers in services generally is low. To make a lasting performance leap, industrial OEMs will therefore need to increase transparency about service contribution and potential, become truly value-focused in their business model, allow for investments adequate for a services business, and create financial equality for services.

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The White Paper is written by Jonas Strömgård, Partner at Differ, and responsible for the Industrial/B2B practice.

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