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Made to Serve. How Manufacturers can Compete Through Servitization and Product Service Systems

  • ID: 2330625
  • Book
  • 270 Pages
  • John Wiley and Sons Ltd
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"Made to Serve is an indispensable guide for anyone considering moving their business from traditional product–based operations to service–based customer offerings. The book is filled with practical examples drawn from successful service businesses and explains the underlying philosophy needed to create and nurture a ′service based′ business. It is easy to read, as well as informative."
Jon R. Greiner, DTM, President, JRG Consulting

"Today, customers have a wide variety of high quality equipment to choose from and manufacturers and dealers who cannot differentiate themselves from the competition will find themselves losing business. Baines and Lightfoot′s research of different industry leaders’ best practices provides excellent insight into growing customer loyalty and increasing revenues through servitization."
Mike Hulon, Customer Services Manager, Mustang Cat, Houston Texas

"Tim and Howard have done an excellent job in critically examining the custom, practice, motivation and key success factors of a number of the most forward thinking organisations in industrial product based servitization. Any company with a product that lasts more than 5 years in operation and a significant ′support′ element to its cost of operation would be well advised to take the lessons captured in this book to heart."
Andy Harrison, Rolls–Royce Engineering, Associate Fellow

"Taking us step by step through a process of skills and capability, this timely book leads us to a land of opportunity, profit and sustainability through servitization. Read it."
Tim Bentley, Director, Alstom Transport

"Tim Baines and Howard Lightfoot supply impressive detail to guide manufacturers, from the novice to the well informed dealer, through the complex world of advanced services. Companies seeking to advance their products by including high–value services, would do well follow their guidance."
Bob Bacon, Vice–President, General Manager of Services, Thompson Tractor Co Inc

"A very insightful read containing fascinating case studies of servitization in action across different industry sectors."
Zachary Emmett, General Manager, Strategy and Marketing, Xerox Europe

Note: Product cover images may vary from those shown
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Preface xi

Foreword xv

1. Introduction 1

1.1 Terminology and Scope 4

1.2 Knowledge Base 10

1.3 What’s New Here? 14

1.4 Navigating This Book 16


2. Business Context for Servitization 23

2.1 An Economic Perspective 24

2.2 An Environmental Perspective 30

2.3 A Market and Social Perspective 37

2.4 A Technology Innovation Perspective 39

2.5 A Knowledge Perspective 42

2.6 Summarizing the Business Context 49


3. Elements of Servitization 55

3.1 The Challenge of Visualizing What it Can Mean to Servitize 57

3.2 A Process of Servitization 61

3.3 Dening Base, Intermediate and Advanced Services 64

3.4 Features Commonly Coupled to Advanced Services 69

3.5 A Summary of Advanced Services 76

4. Business Implications of Advanced Services 79

4.1 Setting Out to Explore Financial Performance 80

4.2 Services, Revenues and Pro4 tability 82

4.3 Motivations of Manufacturers Providing Advanced Services 87

4.4 Motivations of Customers Adopting Advanced Services 94

4.5 A Roadmap of Servitization and Advanced Services 100


5. Delivery of Advanced Services 107

5.1 Searching for Leaders 107

5.2 A Perspective Against the World of Production 110

5.3 Advanced Services and Product–Service Systems 112

5.4 Service Delivery System for Advanced Services 116

5.5 Key Capabilities of a Service Delivery System 119

5.6 Chapter Summary 122

6. Performance Measures and Demonstration of Value 123

6.1 A Pyramid of Performance Measures 124

6.2 Customer Facing Measures of Performance 126

6.3 Macro Internal Measures of Performance 128

6.4 Local Internal Measures and Indicators of Performance 131

6.5 Demonstration of Value 134

6.6 Chapter Summary 138

7. Facilities and Their Location 143

7.1 Facilities in the Delivery of Advanced Services 144

7.2 Impact of Facilities and Their Location 148

7.3 Mitigating the Need for Co–Location 149

7.4 Chapter Summary 151

8. Vertical Integration and Organizational Structure 153

8.1 Organizational Structure in the Delivery of Advanced Services 154

8.2 Vertical Integration in the Delivery of Advanced Services 159

8.3 Impact of Vertical Integration and Organizational Structure 163

8.4 Mitigating the Need for Integration 166

8.5 Chapter Summary 167

9. Information and Communication Technologies 169

9.1 ICT Architecture in the Delivery of Advanced Services 170

9.2 Monitor 173

9.3 Transmit and Store 175

9.4 Analyse and Respond 176

9.5 Impact of ICT Capabilities 178

9.6 Chapter Summary 179

10. People Deployment and Skill–Sets 181

10.1 Deployment of Sta> in the Delivery of Advanced Services 183

10.2 Behaviour and Skill–Sets of Front–O? ce Sta> 185

10.3 Culture, Leadership and Incentives in the Front O? ce 191

10.4 Impact of an Integrated Skill–Set 194

10.5 Chapter Summary 197

11. Business Processes 199

11.1 Services Processes in a Production Environment 200

11.2 Business Processes in the Delivery of Advanced Services 204

11.3 Proactive Processes as the Core for Advanced Services Delivery 208

11.4 Chapter Summary 211


12. Starting a Transition 217

12.1 Summarizing Servitization, Advanced Services and their Delivery System 218

12.2 A Readiness to Servitize 221

12.3 Overcoming the Obstacles to Transformation 230

12.4 The Journey Continues 232

Appendix: Acknowledgements and Guiding Studies 235

Index 243

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Timothy Baines
Howard Lightfoot
Note: Product cover images may vary from those shown