Servitized manufacture: Practical challenges of delivering integrated products and services

Abstract Servitization is now widely recognized as the process of creating value by adding services to products. Since this term was first coined in the late 1980s, it has been studied by a range of authors seeking to understand the wider implications of service-led competitive strategies in manufacturing. However, yet to be explored are the detailed practices and processes needed to deliver integrated products and services. Therefore, the purposes of the present paper are to illustrate the form of a real-life servitization process model, and to summarize the key challenges that a typical manufacturer experiences in supporting such a model. The work is based on an in-depth case study with a leading provider of industrial products and related services. The paper presents this study, an illustration of its servitized process model, and the implications that supporting this model has on the wider manufacturing enterprise.

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