Servitization
Servitization marks a major shift in advanced manufacturing, moving from selling discrete products to delivering integrated value-in-use.
This approach replaces one-time sales with performance-based contracts, in which manufacturers guarantee outcomes rather than simply transferring ownership. By combining physical goods with predictive maintenance and real-time data analytics, firms stabilize revenue and build stronger customer relationships.
This model also aligns profitability with resource efficiency, serving as a critical driver of the circular economy.
FAQ
What is the relationship between Servitization and Digital Transformation (DX)?
A: Digital Transformation (DX) is the key technological enabler of modern servitization. Servitization sets the business strategy, while DX supplies the required infrastructure.
By integrating IoT sensors, cloud computing, and AI-driven analytics, discrete products become intelligent, connected systems.
This connectivity enables manufacturers to monitor performance in real time, predict maintenance needs, and offer usage-based billing. DX bridges the information gap between producer and user, turning raw data into continuous value-in-use that defines a successful service-led model.
