The adoption of servitization strategies by UK-based manufacturers

Abstract Almost all manufacturers offer services, but some use these as the basis for their competitive strategy. This is a growing area of interest among practitioners, policy makers, and academics, yet little is known about the adoption of servitization by UK manufacturers. In this paper a survey is presented that has been used to explore the extent, motivations, challenges, and successes of servitization within the business-to-business sector. The findings indicate, for example, that many manufacturers are succeeding with their service strategies, that they are attracted to these as a source of customer focus and revenue growth, and that such strategies require less organizational change than might be expected. Although the findings from the survey should be treated as preliminary, and further work is needed to confirm their reliability and insight, they indicate that servitization is proving to be a powerful competitive weapon for many companies.

[1]  A. Davies.  Moving base into high-value integrated solutions: a value stream approach , 2004 .

[2]  A. Neely.  Exploring the financial consequences of the servitization of manufacturing , 2008 .

[3]  E. Fleisch,et al.  An investigation of the relationship between behavioral processes, motivation, investments in the service business and service revenue , 2007 .

[4]  T S Baines,et al.  State-of-the-art in product-service systems , 2007 .

[5]  Christian Berggren,et al.  Manufacturing firms and integrated solutions: characteristics and implications , 2004 .

[6]  T. Friedli,et al.  Behavioral implications of the transition process from products to services , 2005 .

[7]  Elgar Fleisch,et al.  Service strategies in product manufacturing companies , 2007 .

[8]  R. B. Chase,et al.  The Service Factory , 1988 .

[9]  Saara A. Brax,et al.  A manufacturer becoming service provider – challenges and a paradox , 2005 .

[10]  Tim Baines,et al.  Towards an operations strategy for product-centric servitization , 2009 .

[11]  Valérie Mathieu.  Product services: from a service supporting the product to a service supporting the client , 2001 .

[12]  Mary Jo Bitner,et al.  Tracking the evolution of the services marketing literature , 1993 .

[13]  A. Tukker.  Eight types of product–service system: eight ways to sustainability? Experiences from SusProNet , 2004 .

[14]  Stephen L. Vargo,et al.  Evolving to a New Dominant Logic for Marketing , 2004 .

[15]  R. Wise,et al.  Go Downstream: The New Profit Imperative in Manufacturing , 1999 .

[16]  James C. Spohrer,et al.  A research manifesto for services science , 2006, CACM.

[17]  J. B. Quinn,et al.  Beyond products: services-based strategy. , 1990, Harvard business review.

[18]  Elgar Fleisch,et al.  Success factors for achieving high service revenues in manufacturing companies , 2006 .

[19]  Tim Baines,et al.  Servitized manufacture: Practical challenges of delivering integrated products and services , 2009 .

[20]  S. Vandermerwe,et al.  Servitization of business : Adding value by adding services , 1988 .

[21]  Rogelio Oliva,et al.  Managing the transition from products to services , 2003, International Journal of Service Industry Management.

[22]  Jay R. Galbraith,et al.  The problem of solutions: Balancing clients and capabilities , 2002 .