Nobody wants a drill , people want a hole
Manufactured goods, whether it are high cost capital machinery, vehicles, … are becoming more and more commoditised. Globalisation and use of technology has enabled such items to be produced at much lower costs and the speed of imitation and copying has only increased significantly.
It is no longer sufficient to justify the capital cost of the produced goods with the standard explanation of features & benefits it offers.
The customer demands today the product to be supported with lifetime service agreements and guaranteed cost of operation.
This requires a servitisation transformation that is not easy and may not be well fitted for every organisation.
The main challenge for a servitised company is that you need to be able to put yourself in the shoes of the customer and experience what it is like to deal with your own organisation.
The benefits of this is that you become part of feedback loop that enables your organisation to evaluate the performance of the product ‘in service’ and if executed correctly, it will deliver you valuable R&D information for future product development leading to a permanent competitive advantage.