Aston Servitization is an organization that invests time in the research of the valuable potential of servitization to the growth and development of U.K. economy. We are dedicated to learning the processes behind servitization, of course from the world’s leading organizations. We hope to expand our knowledge about servitization so that we can work with regional and national manufacturer servitize their operations.
Servitization is really essential. It is revitalizing not just the U.K. manufacturing industry, but also other sectors including housing, banking, and most especially, education and business. In fact, servitization is gaining popularity today and has gradually changed business models in the manufacturing industry.
Basically, servitization is the innovation of manufacturing business models. Instead of focusing on the product quality and quantity, manufacturers are developing strategies to add more value to certain products and services so that it will be more beneficial to the consumers.
Why is servitization important?
There are major advantages in integrating servitization into business and manufacturing industry.
Everything is constantly evolving. There is a need for businesses to elevate their services especially that consumers have increasing demand. Before, manufacturing industries are only worried about the quality and efficiency of their products. They wanted to satisfy their customers after the purchase. But the question is: Is this going to be long-term? With this, servitization comes in the picture. It aims to redefine service, providing not just a product to the customers, but an entire solution.
Promotes financial stability
With servitization in the picture, more businesses will become stable. Why? Manufacturers offer solutions by contract. If these products satisfy consumers, they will sign-up for long-term contracts. With this, the revenue streams of businesses will become more secure as service contracts boost cash flow, thus generating more revenue. According to the Field Service Europe report (2014), manufacturers experienced a 35% increase in profit after exploring servitization.
Strengthens customer relationship
It does not just only promote financial stability, but it also strengthens customer engagement. Service contracts increase the chances of acquiring loyal customers and upscale. Servitization keeps more customers in a way that it provides solutions that any products cannot offer. Manufacturers that utilize the “opportunity in added service” will build stronger customer relationships.
There are so many things that should be learned about the advantage of servitization in businesses. In fact, our team is striving hard and is doing our very best to fully understand the potential and advantages of servitization.
The world keeps growing in complexity. The demand increases as well. Manufacturing industries and businesses should keep up with these changes. They should start ‘servitizing’their operations.
If you have any questions, concerns, or feedback on our website, please do not hesitate to reach us through our contact page. If you wish to visit us, feel free to visit Aston Business School.
Thank you very much!