Servitization

Written by one to ONE Holdings | Jan 21, 2026 2:28:16 AM

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.

View full post