The transformation from product to service business is in full swing
In some industry areas, companies find it increasingly difficult to differentiate themselves through their products and struggle to create sustainable revenues. The costs of research, even for marginal innovations, are increasing rapidly and competition is mostly based on price. In such situations, service business offers high margins and the opportunity to create long-term customer loyalty. While many companies are still focusing on the product-based spare parts business, others have already transformed into a service business. In some cases, this transformation was followed through consistently all the way to an operator model. Today, these companies are generating up to 50% of their revenue through services.
Immediate action is necessary and can lead to successful positioning in the competitor market when the right measures are put in place. We have the credentials and a successful track record of helping companies to unleash their service business. We have the right answers at hand to help you achieve your desired goals.
Digitalization is of particular relevance in service-oriented businesses. Mobile communication, GPS tracking, remote service rendering and the automation of service routines promise an efficiency increase of more than 40% in some cases. However, service quality and performance must be improved in line with increased efficiencies. We want your transformation to be a success—that’s why our approach is built on a realistic and pragmatic transformation plan.
Predictive Analytics is currently one of the most important Big Data trends. It deals with nothing less than the prediction of service developments and is a continuous, integrative process. As the models applied are further improved and adapted, predictive analytics is becoming more precise. The use of Big data and advanced analytics are revolutionizing service-oriented businesses and leading to a drastic increase in system availability. Together with you, we’ll lay the groundwork for profitable growth in the service business.
By using a service performance analysis, h&z can objectively evaluate your service business based on four pillars: competitive service portfolio, professional service sales, industrialized service rendering, and service-specific procurement. In general, successful service businesses have a solid service business model and they have a strongly anchored service mindset—in other words, they live and breathe service. We can help you with both. We use design thinking and agile methods to quickly help you develop new services that are tailored to your customers.
Small change, big effect! Global service concepts are helping to create economies of scale in the service business with the help of standardized processes. h&z knows which levers to use in order to align the processes in the service area in such a way that your company can get the best results and prevail in a competitive market.
Five service offerings
How does one make the successful change from a product to a service business? Over a timeframe of one-and-a-half years, we have worked with 17 renowned service champions to analyze in great detail the factors that lead to success in service. You can read about the results in our study ‘The five commandments en route to service success.’
If you would like to know how good your service business is, we’ve developed a short version of our service performance analysis within the framework of the study. We would be happy to explain the concept to you.