5 challenges when servitizing your business

Adding engineering services to existing products has become imperative for many manufacturers to maintaining their competitive advantage. The resulting offerings, and integrated solution of a product and a service element, may reach from full-scope maintenance contracts, over pay-per-performance agreements, to performance guarantees.

While this strategy promises high gains, its implementation is often challenging. Developing a new engineering service as an integrated solution with existing or new products is particularly pathed with various challenges that can cause the resulting offering to fail, or never to reach the market. In our research, we have conducted a benchmark study with multiple international manufacturers to understand: What are the challenges when developing integrated solutions? We have identified five challenges of which to be aware when developing integrated solutions.