Digital servitisation as a way to (hyper)scale a wide range of services

Analog servitisation requires a linear (or more) scaling of personnel and local presence, either in-house or through an affiliates network. Digital servitisation is to services, what hyperscaling is to software: to deliver the same or more services at a global scale, with significantly less personnel and more centralised presence.

Applying digital services to reduce operational costs is therefore often a first step to take. We have seen cases where helpdesk services could be made twice as efficient, salesforce had a much higher return rate (because you have a better, objective and direct view on customer needs)…

And once you have this digital supporting infrastructure in place, it also unleashes new opportunities towards your customer and/or partner network. While we see it is often hard to generate direct, additional revenue from this path (i.e. people don’t want to pay extra for some mobile app that helps them in their interaction with a machine), it does improve the brand position and reduces customer churn.

Finally, some cases can be ambitious and support new business models with this digital service infrastructure. Again, multiple approaches are possible here, depending on your market context. Examples here are companies that are evolving from selling devices to subscription-style offerings (including maintenance, and potentially even consumables). Others augment their traditional business by finding different ways to interact with their existing or new partner network, where they can claim back part of the revenue you have lost when you had to leave (analogue) services to third parties.

But again, the opportunities differ from case to case and depend on both 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 specific case. Would you like to know more? Feel free to contact us!

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