Servitization

Against the background of latest developments such as Cyber-Physical Systems and Internet of Things, manufacturers need to adapt their business models. This digital transformation is often associated with implementation challenges, even for market leaders. It will require further efforts and time before customers will benefit from these new trends. This article highlights the implementation reality in German and Swiss mechanical engineering companies, based on a multi-case study with examples from pharma, packaging and construction industry.

Product attractiveness can be substantially increased when offering service extensions alongside. These services may create additional demand for the product by addressing new customer groups. The main challenge however is the development of services which increase customer value of the product to such an extent that leads to a purchase decision. The paper presents a method of idea generation for new product-service combinations following a systematic search approach for possible options. The basic concept of the suggested method as well as its search methodology for identification of promising services will be discussed using the example of the electric car, which so far lacks mass market success due to inadequate business models.