Servitization and Manufacturing Companies
Reading manufacturing businesses now requires understanding how service tasks are incorporated into the business models and operational processes required to produce physical goods. This includes understanding the transformation of some goods into service
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Key Themes • What role do services play within manufacturing firms and their goods? • Service businesses within manufacturing companies • Defining and exploring servitization • Challenges of servitization and the service relationship in manufacturing • Alternative strategies • Research traditions and challenges within management, marketing and operations Maintaining good service relationships with customers is one of the factors that has led manufacturers to focus more on the contribution services make to the production and sale of manufactured goods. Manufacturing companies purchase services to improve production and sales processes; however, they also sell services directly to customers. This has led to the development and application of a service-informed approach to the sale of manufactured goods. This creates new challenges, not least the challenge of adopting and developing a service culture by manufacturing companies. New strategies and tactics must be developed to overcome these challenges. Reading manufacturing businesses now requires understanding how service tasks are Electronic Supplementary Material The online version of this chapter (https://doi.org/10.1007/978-3-030-520601_12) contains supplementary material, which is available to authorized users.
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incorporated into the business models and operational processes required to produce physical goods. This includes understanding the transformation of some goods into services and the development of additional services that are attached to or embedded into manufactured goods. In this chapter, we consider the ways in which services have been incorporated into the operational processes that support manufacturing and product/good-related services. This includes the provision of consultancy services, design and development services, retail and distribution services, financial services, logistics services, installation and setup services, management and operating services, maintenance and support services and disposal and conversion services (Mastrogiacomo et al. 2019). The focus of this chapter is on understanding the emergence of material product-service systems and the challenges related to their organization and management. This chapter is in five parts. Following the introduction, various types and degrees of servitization are explored. Then the challenges facing manufacturing companies as they adopt servitization are identified and explained. This leads to a discussion of alternatives to servitization such as deservitization, standardization and productization. Finally, three dominant business perspectives developed to explore servitization are reviewed to understand the problems and challenges managers in manufacturing companies
© The Author(s) 2020 J. R. Bryson et al., Service Management, https://doi.org/10.1007/978-3-030-52060-1_12
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face as they develop and apply service-led approaches to the realization of material goods.
12.1 Servitizing in Manufacturing Companies To highlight the role services play in manufacturing, Brax and Visint
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