The numbers behind servitization: An insight for manufacturers
4 April, 2017
We at Columbus are proud to have been sponsors of the Annual Manufacturing Report 2017; it’s a fantastic piece of research offering an insight into the manufacturing industry and the trends set to sweep across the sector this year.
The Annual Manufacturing report this year investigated how businesses felt towards 'connected factories', and aimed to highlight the different stages in adoption across the country. One of the aspects covered in this section was Servitization... Servitization is based on the premise that by integrating products with services, you can create bundles or service plans that are of greater value to customers than just selling your products alone. By moving from purely providing products to being service providers too, it adds another level of value to your product offering and has the scope to generate additional revenue.
This transformation has been said to disrupt businesses for manufacturers globally, especially with the rise of IoT and more enhanced ERP making the process more convenient and streamlined. You might be thinking that this is just another industry buzzword, but it isn’t, the likes of Rolls Royce and Siemens have already adopted this model successfully and you should too. In the infographic below, we pick out some of the key statistics from the report:
Servitization is all about really understanding the customer, and their business needs and understanding the ways that your product and your service can help the customer to become more successful, in turn, making you more successful. With 83% of manufacturers expecting that servitizing their products will help them to sell more, we should expect to hear a lot more about the service based business model throughout this year. If you'd like to learn how Columbus, our industry know how and our solutions can support you on your servitization journey, read our blog post 'How ERP can support manufacturers on the servitization journey' here, or get in touch with us today.