Servitisation is a new phenomenon that is sweeping across European Industry as they struggle to find growth through turbulent times. But what does this mean?
The servitisation of products describes the strategy of creating value by adding services to products or even replacing a product with a service. Selling maintenance contracts for capital goods is an example of a service being added to a product. Contracting tyres by the kilometre to haulage companies instead of selling them outright is an example of a service replacing a product.