Servitization – Game Changer of the Manufacturing Industry
Traditional business models are under pressure across all industries: A study from PA Consulting shows that 70% of manufacturing companies that were on the Fortune 1000 list ten years ago have disappeared. Survivors include market leaders such as IBM, Boeing, General Motors, John Deere, Rolls Royce and Philips – i.e. companies that have continuously renewed their offerings and redesigned their organisations.
Historically, the manufacturing industry has focused on products, not taking into account the value they could add for their customers. This is no longer the case. Companies including Rolls Royce are now harnessing the benefits of servitisation. Instead of just selling jet engines, they have developed their service portfolio and business model to rely primarily on selling lifecycle services using sensors and Internet of Things. Philips Healthcare, on the other hand, has moved from selling MRI scanners to selling scans and are close to selling diagnoses based on those scans.
Manufacturing companies are searching for new ways to gain revenue. As digital disruption moves fast forward, even larger companies must rely on a combination of agility and versatility to survive. Forming partnerships with startup businesses is one way to go forward. According to Finland-based Futurice, startups offer traditional manufacturing businesses visibility far beyond their own domain. They also function as a platform for brave experiments.
In this year’s final issue of Maintworld-magazine you may learn how major industrial companies are teaming up innovative and agile startups in a bid to develop new business models. You will also find the results from a recently published market study carried out by Mainnovation and PwC on how predictive maintenance 4.0 is expected to drastically change the maintenance market in the future.
Wishing you a successful rest of the year and hope you find our newest edition of Maintworld-magazine interesting and inspirational.
Editor-in-Chief of Maintworld-magazine