Oracle Industry Solutions - Manufacturing

The Manufacturer’s Guide to Digital Connected Service
Satisfy new customer demands through servitisation

We live in the age of service

Customer demands, changing buying habits and advances in technology have all conspired to make service both your key point of differentiation, and the most important battleground with your competitors. As a manufacturer, it’s no longer enough to simply deliver a product to a customer – even if it performs exactly to specification. The customer’s ongoing experience has become a core part of the value you offer.

What once represented the end of your interaction with a customer – the delivery of a finished product – is now just the start of a lasting relationship. That relationship will require frequent communication, an understanding of what the customer needs from you moving forward, and very likely, a change in the way that you structure and sell your aftermarket services. In practice, those changes might involve anything from dedicating more resources to aftermarket service and exploring new channels for customer communication, to building entirely new service-focused business models.

What is “servitisation”?
If you’ve not come across the term servitisation before, The Manufacturer describes the concept as:
“When manufacturers adapt their business models to offer their customers services on top of the physical product, thereby creating a holistic solution – in some cases even replacing the physical product.”

Servitisation is a major opportunity for manufacturers

This shift towards greater service is a major opportunity for transformation, innovation and modernisation – helping you to better serve customers for decades to come, while opening up lucrative and long-lasting revenue streams and improving relationships. With the help of new technology, you can transform the way you interact with customers – going beyond better communication and enabling proactive, predictive service delivery, adopting pay-as-you-use monetisation models, and delivering the physical products you produce as subscription-based services. In this preview we’ll explore what customers expect of manufacturers today, how you can start delivering the kinds of connected and convenient service experiences they demand, and where powerful opportunities lie for monetising those services in new and exciting ways.

The shift to servitisation

To understand exactly why service has become so important to your customers, and where the servitisation opportunity has come from, we need to start by looking back a little bit.