Building a servitization mindset to transform your field service organization
Servitization is likely a familiar term to many field service organizations as leading companies around the world, from aerospace to oil and gas exploration, move from a traditional product-centric delivery model to a more service-centric one. In a global, commoditized economy, successful companies understand the need to differentiate themselves through service delivery. In fact, according to The Manufacturer, 83 percent of manufacturers say that servitizing their products would help them to sell more and stay competitive.
This post will discuss how to change your organization’s mindset from a focus on delivering high-quality products to delivering a specific customer outcome. The best way to understand this shift is through two simple questions:
- What does my customer really care about?
- How can I deliver that outcome in a more effective way?
Let’s consider each question in more detail.
What does my customer really care about?
In the context of field service, customers often want to avoid costly and time-consuming service issues. When issues arise, they want a simple, seamless experience and a quick resolution with a positive on-site experience. It can be difficult to deliver these outcomes using traditional models where the customer makes large up-front expenditures, paying for services and repairs as needed, often after a failure has happened. Focusing on the outcome over the product enables field service organizations to implement the delivery model and technology necessary to meet those customer needs – and creates new opportunities to generate revenue while strengthening customer relationships.
Sandvik Coromant’s customers benefit from the company’s deep knowledge of the machining process, built over seven decades producing machining tools and tooling systems for manufacturing. To optimize their own production, Sandvik uses a solution that integrates all elements of the production flow, enabling them to make better production decisions. To deliver effectively deliver their expertise to customers all over the globe even when technicians can’t be on-site, Sandvik designed a digital solution that combines human intelligence, machine intelligence, and data from connected devices to create tools used to automatically adjust equipment, notify technicians of necessary maintenance, and alert plant managers of potential failures. The result is a better experience and significant savings for their customers.
Handicare is one of the world’s largest providers of resources for the disabled and elderly, manufacturing products such as stairlifts with a goal to “make everyday life easier.” Customers also rely on them for installations and annual maintenance to ensure reliable operations for their stairlifts. Handicare implemented an intelligent, connected solution to reduce their quote-to-delivery time, allowing technicians to easily find which repairs are covered under SLAs, update customer information on-site, and create automated analytics reports. Handicare has seen improvements in KPIs, improved accuracy in warranties and billing, more thorough customer and market insights, and higher first-time fix rates.
Once you’ve determined your customer’s key concerns, the next step is to determine how to more effectively deliver that outcome.
How can I deliver that outcome in a more effective way?
AI-enabled connected devices provide both the data and insight to execute a successful transition to outcome-centric delivery. Meanwhile, an end-to-end platform improves customer experience and provides seamless integration across departments. Learn more on how connected field service can transform field service delivery.
Global facilities management giant Sodexo works closely with clients to deliver a comprehensive and integrated suite of services, including building, transportation, and property management. In the past, Sodexo relied on a plethora of disparate, standalone computing systems that were inefficient and difficult to manage. Using Dynamics 365 and a new Azure-based information platform, Sodexo now delivers continuity in its enterprise management services, and ensures genuine reliability and long-term investment for its clients. As a result, one client has even reported tens of millions in savings in the first year.
Using advanced technology, companies like Sodexo can anticipate customer needs, not just react to them. They’re using this insight to deepen customer engagement and drive long-term revenue growth.
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Microsoft offers a unique combination of world class IoT, intelligence, scalability, and end-to-end field service capabilities. Learn how Microsoft Dynamics 365 for Field Service can transform your service organization today.
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