Transformation of Service Business
Generate new revenue streams through service transformation
Service transformation is everywhere but has yet to have a big impact in industrial equipment and manufacturing. That is now starting to change.
Processes and products are changing, and a big reason for the change is the current market situation. Services are increasingly seen as a strategic business area, and are thus gaining importance in today’s competitive market. Conventional, previously must-have services are no longer capturing customers, who need more individualized products. Products and services are now merging into customer-centric, product-service bundles, and there has even been the development of entirely new services. In addition to this, data-driven services, or smart services, are gaining increased interest in the market because they are tailored to customer needs.
A key driver of the current service evolution is digitalization, as it has penetrated almost all industries and business areas. The advantages are apparent: increased efficiency, reduced costs, higher customer satisfaction, and access to adjacent fields of business. New technologies, as part of digitalization, are needed to secure a market position ahead of competitors. In many cases, however, the results of implementing innovative technologies vary. What determines success or failure in digitalization projects? It is not just about implementing technology and creating a corresponding service offering – successful projects have an understanding of the entire underlying transformation process across the value chain.
In addition, finding the right application for a technology, e.g., generating product knowledge on “operations in the field,” presents another key challenge. New technologies and services succeed when companies are able to implement organizational and processual changes surrounding a technology and understand where to apply it in correspondence with its business needs.
Success lies within the transformation process across the entire enterprise. We were able to prove this effect in our current study on digitalization in customer service.
To ensure long-term success, companies must carefully structure and organize the “Servitization” change from single service offerings to service concepts. BearingPoint, as a management and technology consulting firm, offers a holistic understanding of technological solutions and requirements for driving economic success. This enables us to provide client support for both improving current service processes as well as developing innovative, customer-centric, product concepts.