Servitization in the Digital Era

Jeff Kavanaugh (), S. Ramachandran () and Rajiv Puri ()
Additional contact information
Jeff Kavanaugh: Infosys Knowledge Institute
S. Ramachandran: Infosys Knowledge Institute
Rajiv Puri: Infosys

A chapter in Advances in Digital Manufacturing Systems, 2023, pp 99-133 from Springer

Abstract: Abstract Servitization is an emerging business model in a service-based economy. It is a bundle of a product and its essential services, with usage-based customer payment. For servitization to be profitable and scalable, the business model must translate into an efficient operating model, with pricing as a key parameter. Our research shows that large-scale servitization adoption has been constrained by the lack of agility and ineffective technology implementation. For instance, technologies like IoT, Analytics, and Artificial Intelligence are essential servitization components, enabling smart products to use feedback loops to monitor ongoing performance and usage. Servitization models are introduced through proof-of-concepts and pilots, yet operational scale is key to reach and sustain profitability.

Date: 2023
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-19-7071-9_6

Ordering information: This item can be ordered from
http://www.springer.com/9789811970719

DOI: 10.1007/978-981-19-7071-9_6

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().