Servitization Strategy

Competing through advanced services involves offering products-as-a-service, delivering outcomes for customers, and regularly earning revenue when customers get the results they value. This strategic move towards delivering outcomes can present many challenges for a firm. Part of the Palgrave Executive Essentials series, this book introduces outcome-based business models as Advanced Services Business Models and provides a practical guide on how a firm can innovate these services through a process known as servitization.

Servitization offers businesses a pathway to both improve economic productivity and sustainability. It can create greater value for customers, while also improving resource efficiency and dematerialisation of the supply chain. It has the potential to reshape the industrial landscape for businesses, markets, and consumers around the world. This book is for executives, professionals, and anyone else who is looking for a practical guide to implementing service-based business models or seeking to innovate their business models to focus on services. It functions as a companion for students in executive education courses on servitization, business model innovation, strategy, and operations and should be on the radar of all instructors in those fields.

“Through an honest, practical and ‘real-world’ approach to understanding and implementing servitization strategy, Tim Baines and the Advanced Services Group. From my own first-hand experience of utilising the tools, processes and frameworks outlined in this book, I wholeheartedly support these practical methods as a demonstrate that while challenges certainly exist, they can be overcome, and in doing so provide significant opportunity for increased revenue capture and business resilience.” (Ross Townshend, Former Business Unit Manager at Ishida)

“Working with Tim and his team provided the tools to develop a viable Machinery (Hardware) as a Service (MaaS) Business Model and the confidence to launch this into an antiquated global industry, where such a Business Model is an alien concept. MaaS is the catalyst that will transform a global food system delivering demonstratable benefits for all stakeholders.” (Alec Anderson, Managing Director at Koolmill Systems)

“Tim Bainesand Ali Bigdeli have been studying servitization in the real world for decades. In this book, they translate their observations into insights and models that are very useful for practitioners trying to move from product-led to services-led businesses. I can speak from experience to say that we would not have been as successful in building our services businesses at Goodyear without their insight.” (Jim Euchner Former Vice President for Global Innovation at The Goodyear Tire & Rubber Company)

“SERVITIZATION STRATEGY is a “must have” book, a phenomenal tool to Thanks to the great help of Prof. Tim Baines and members of the ASG team, we have managed to effectively involve our European organization in the development of an integrated value proposition strategy of “services and products”, where advanced services are perceived not only as a great door opener in strategic accounts, but also as the key element in establishing long-term relationships and generating revenue streams. Guide industrial companies in the development path of services business model and advanced services and in its successful implementation.” (Maurizio Poli, General Manager Strategy Implementation at Omron)

“Finally, a publication containing all the good practices for a company to embark on the journey of Servitization. The passionate work Tim and the ASG team have been performing deserved to be compiled in a book that can help transforming the way we do business.” (Alejandro Chan, Vice President of Global Services at Tetra Pak)

“The Advanced Services Group have been instrumental in inspiring new ways of thinking about customer-centric propositions and supporting business model innovation to fit. This book is a must-read bible for any entrepreneurial senior leader who wants to get ahead in their sector and remain relevant for current and future customers. Read the book, be bold and experiment to win.” (James Galloway, Formed Head of Product Management, UK and Ireland at Baxi)

“The authors challenge business leaders to look beyond internal process efficiencies for productivity improvements. In addition, they advocate business model innovation, to enable delivery of outcomes for customers with economic, societal and environmental impact. The results can be spectacular, but it’s not easy and their practical application frameworks help to create a pathway. On our servitization journey so far, we’ve changed the conversation from lowest price to highest value, whilst building customer trust and loyalty.” (Paul Jackson, Managing Director at UV Light Technology)

“I enjoyed reading Tim Baines’ previous book, Made to Serve, and his new follow up has gained valuable insights into the current and increasing trend towards adoption of Servitization. The wealth of explanations and real-life practical examples provided by so many first-class businesses are coupled with plenty of guidance to aid readers new to the field. The pursuit of Net Zero and growingcompetition from low-cost producers give added urgency to exploring and adopting advanced services and this book provides an excellent blueprint for the necessary actions to be taken.” (Paul Jennings, Former Managing Director at JCB Finance)

“I would like to thank Tim and the ASG for their invaluable support and advice in helping us navigate a journey towards outcome-based services, one that still has a long way to run. It is the blend of insightful theory and real-life practise that has been most compelling and that is why this book is essential reading for any business leader embarking on a similar journey.” (Will Edwards, Director of Channels at Domino Printing)

Tim Baines is a Professor of Operation Strategy at The Advanced Services Group, Aston University, UK. He is recognised as an international authority and thought leader in the field of industrial strategies and servitization. His work has had a significant impact on the way that firms design, deliver, and manage their products and services, and is increasingly shaping how industrialists think about the future.

Ali Z. Bigdeli is a Professor of Industrial Service Innovation at The Advanced Services Group, Aston University, UK. He is internationally recognised for his pioneering research, which focuses on innovative business models for industrial services and has an impressive track record of over 100 peer-reviewed publications, book chapters, and conference papers, collaborating with leading scholars from various countries.

Kawal Kapoor is a Research Fellow at Aston University, UK, and a member of the Advanced Services Group, where she works closely with manufacturing firms on servitization strategy. Additionally, she plays a major part in developing practitioner-oriented mini guides, frameworks, and executive workshops on servitization. Her research expertise is in service-oriented value networks and platform ecosystems, digital servitization and IoT, service and outcome-based business models, and diffusion of product and service innovations and her work has been published widely.