Servitize me!

New business models powered by connected technologies

Servitization of product-based business models is in fashion, as a result of trends in buying preferences both in B2B and B2C markets. Servitized payment models include pay-for-time (subscription/leasing) pay-per-use and pay-per-outcome (the result, what the product does).

Customer trends coincide with two strategic ambitions for product manufacturers; to increase the share of recurring revenues over the product’s life cycle, and the need to monetize investments in IoT and analytics. New offerings are launched almost by the minute, and even more are on the drawing table. Results so far are mixed, however.

Based on multiple client engagements as well as a thorough review of academic literature, we have extracted lessons learned from the experience to date. First and foremost, product firms need to do their homework on direction setting – matching the company’s external and internal conditions to design the right model. Secondly, they need to explicitly recognize the magnitude of internal change required to be successful in the transformation, and take the consequences of direction decisions in their operative model.

Read the full White Paper here.

For more information contact Jonas Strömgård at 073-688 96 31 or jonas.stromgard@differ.se

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