Is your business fully exploiting the potential of the service business?
Service has a significant potential impact on a company’s overall profitability but many OEM’s are still missing out on the lucrative revenue streams that can be achieved in this areas and the improvement in customer satisfaction delivered at the same time. The biggest revenue contribution is still from spare parts and Maintenance within the overall service strategy framework, but this is also now changing fast, as many leading companies seek to move towards total solutions and “Servitization”.
A service business requires a clear dedicated strategy as a starting point to enable the business to fully realize the potential of this lucrative business opportunity by expanding its market opportunity, by exploiting the ‘natural’ potential of its own installed base better?
This could be achieved by expanding your service portfolio further, initially focusing on basic service, which is a sound foundation for life-cycle services and then later on to concentrate on specialization using a ‘ladder model’ to achieve “Servitization” through building capability incrementally to limit the risk to the business and allow the organisation to better understand the change in your business model and the implications this has on your back office functions and front line sales force capabilities.
Future offerings will become much broader to lift the full revenue and profit potential of the service business. We propose a three phase structured project approach to Assess, Define and Implement a future service strategy.
If your company is interested in developing a complete service strategy and the benefits of servitization, please get in touch www.assetright.com