Digital servitisation as new value creator

In previous posts, we looked at how digitally optimising support functions can significantly reduce the total cost of existing services. But they can also be used to develop new value creators.

In the service realm, this includes new forms for maintenance packages, subscription models (e.g. for consumables) and warranty up-sells. In combination with a lowered cost of service execution, these services can yield significant higher margins, continuous money flow and an appealing offer for customers who are willing to pay a premium for having a “peace of mind”.

But digital services can also be used to improve your products-of-the-future. Examples include:

  • self-service functionality, e.g. menu item in the user interface for ordering consumables (by connecting products directly to the service back-end)
  • personalisation of product interactions (by linking back-end information to take product decisions)
  • benchmarking and usage guidance (evaluate usage of product versus broader back-end view)

These functions could be marketed as separate products or options and increase the value of physical products.

But again, the opportunities differ from case to case, and depend both on the technological capabilities and market conditions. In a digital servitisation workshop, we use a broad range of digital reference servitisation patterns to interactively figure out what the opportunities are in your case. Feel free to contact us if you would like to learn more.

This series has been made possible thanks to the support of VLAIO, Innoviris, Smart Innovator.