Even though the term “servitization” has been around since the late 1980s, the meaning and importance behind it have only recently been recognized in the world of manufacturing. This change has come about due to the lightning-fast advances in technology and the ever-growing need for strategic thinking and high-level efficiency in competitive markets.
Servitization essentially denotes a transformation – it represents a shift away from traditional manufacturing processes, which involve simply selling products, towards a business model that can best be described as a product-service system.
The term “servitization” has gained traction in recent years. It refers to selling an outcome as a service. A great example of this is Netflix: it sells media as a service, rather than selling the CDs or DVDs customers would have used to consume media.
Servitization isn’t just confined to companies operating in the digital space, such as Netflix. Manufacturing firms can also take advantage of servitization. Microsoft Dynamics 365 can help them achieve this goal – read on to learn more.
In today’s increasingly competitive marketplace, lasting client relationships and high customer loyalty are becoming a crucial factor to a company’s success. This emphasis on driving for high customer satisfaction and repeat business is highly justifiable since there is a strong correlation between quality client relationships and the company’s ability to remain relevant and, ultimately, profitable.