We highlight a trend toward value-added services as a means for medium-sized manufacturers to drive innovation.
When you're a manufacturer on a slim budget, it's not easy to muster up the courage to innovate. When product demand begins to decline, however, innovation becomes a necessity. In an effort to survive organisations are seeking ways to commercialise successful innovations quickly. In some cases, the challenge has led medium-sized manufacturers to pursue a strategy called 'servitisation'. It is no quick journey to success, but research insight lends credence to the idea.
To 'servitise' means to combine value-added services with products that deliver additional capabilities to customers on an ongoing, 'pay as you go' basis. If, like other manufacturing companies, you're eager to pump all your innovative forces into generating income and saving money, then you might want to take note of the term, 'servitisation'. Even if you're not interested in the jargon, it's worth considering its essence: the shift from a focus on product to service.