What on earth is servitisation? Well, today’s Smart Industry organisations are changing their business models to accommodate it… so it’s kind of a big deal. The process of servitisation allows an organisation to offer additional services to a product or offering to increase its overall value lifecycle.

In short, it represents a whole new business model which blurs the line between software providers or manufacturers and service companies. Servitisation is a new innovative method to help your company standout from the crowd (insert lightbulb moment here)!

Types of servitisation functions

The different types of servitisation won’t necessarily shock you. It’s simply a list comprised of traditional services which manufacturers and software houses have historically not provided. What’s ground-breaking is the merging of these services combined with products or offerings.

• Installation and implementation
• Maintenance
• Consulting
• Bundling
• Training

Rolls-Royce Aero Engines have taken the concept to the furthest degree. They offer clients ‘power-by-the-hour’. Rather than selling an engine, as they did historically, they sell the service solution….in this case engine power.

This product includes the physical engine and all the maintenance and care to maintain it. This way clients and OEM align objectives, by paying (and providing) a working product. Historically OEMs would generate more revenue from a poor product that needed significant servicing. Not anymore.

Impact on the smart industry

Servitisation is a fully integrated offering, from pre-sale to after-market support and consultancy. This is fantastic news for manufacturers and software providers, but for consultancies and free-lance consultants, you’ve got some competition…

At Cranfield University, Dr.Lightfoot uncovered three areas servitisation will impact most:

1. Customer intimacy will improve thanks to increased communication with the consumer. For sales professionals, this is a fantastic opportunity to establish deeper routed relationships with their client base. This will ultimately increase the chances of repeat business and referrals.

2. Operational Excellence lies at the very heart of Smart Industry and Industry 4.0. Today’s Smart Industry businesses are striving towards reducing project costs and time whilst maximising efficiency via technology and enhanced connectivity. Servitisation will provide the guidance to maximise consumer return on software and technology.

3. Product Leadership will allow manufacturers and software houses to lead their products and software to best in class status through differentiating between other packages.

Talent 4.0 and servitisation

A topic that is finding some traction is Talent 4.0, which relates to the changing demands businesses have for talent to meet the demands of servitisation and industry 4.0. Not only is service a key component but the digitisation of the products and the clear link that exists with the Internet of Things (IoT).

Businesses are now competing for technical competence to influence product development and in return increasing demands on sales, marketing, service and operations. Alongside this, there is a requirement for “softer skills” including communication, interpersonal and product knowledge.

Competition for these skills are fierce, but that skills shortages, aversion to change and reluctance to collaborate externally remain key challenges.

Servicing your recruitment strategy

Upskilling your existing workforce is a fantastic way to gain control over the skills and attributes you require to achieve servitisation in your workforce. And for those areas which need additional headcount, FMC Smart Industry possesses a fantastic pool of talent which boast comprehensive software and technology experience accompanied with industry leading service skills across the world.

If you’re interested in understanding more about technology and servicing talent in the Digital Construction, Plant and Manufacturing markets then visit our website or call us on +44 (0) 1522 695 011.