Servitization Propels the 'Tomorrow' of Manufacturing
manufacturingtechnologyinsights

Servitization Propels the 'Tomorrow' of Manufacturing

By Manufacturing Technology Insights | Monday, June 17, 2019

Servitization in ManufacturingFREMONT, CA: There have been enormous changes in the manufacturing world over the past two centuries, and nothing has influenced the sector more than the demand and expectations of consumers. Manufacturers have developed from selling products to selling the result or value delivered by products and ensuring the uptime of the item. This focus on proactive repair avoidance is a significant shift from previous break-fix models, as it implies that the responsibility has moved from the end user to the Original Equipment Manufacturer (OEM) to ensure that products are fully functional. The difficulty here is that the method of conversion is not going on overnight. However, after the change is made, the advantages of servitization are incredibly appealing.

Focusing on repairing execution, or repairing a product after it's already broken down, has developed a kind of muscle memory for producers, where the objective has been to make the experience of repairing better, rather than less. According to the latest studies with Worldwide Business Research (WBR), 98 percent of clients stated that they want maximized product uptime to be prioritized in service contracts with their suppliers when only 33 percent of suppliers offer this today. For producers, there has never been a more significant moment to drastically alter the way their company operates on the after-sales service side.

It won't occur overnight to move away from break-fix to service-as-a-product. People are at the heart of after-sales service organizations, forming the workforce that keeps motors running and improving procedures. And while advances such as information and automation may have been originally implemented as a manner of streamlining the workforce, empowering those people who will carry their businesses into the future is more crucial than ever.

Emerging technology has always played a leading role in manufacturing, but adopting this technology is where there is a real industry revolution and which brands will rise to the top. It is anticipated that companies that adopt new, advanced technology that streamlines procedures, optimize budgets and increases general efficiency in the workforce will outlast and outpace the competition. Companies need to embrace techniques that will both allow them to deliver on the commitments of service as a product and empower their team members to seek out next-level outcomes and regions for enhancement.

Manufacturing is ready for disruption and innovation after prolonged periods of uncertainty. Servitization is a demonstration of this, and it will be fascinating to see its success, innovating the manufacturing outcomes. 

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