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Is Servitization the Next Big Business Model in Manufacturing?
Posted 13th November 2022
In the manufacturing industry, servitization is causing a paradigm shift in the status quo. Manufacturers of physical products that are sold as one-offs are gradually adopting the servitization model where they are coming up with innovative service offerings to replace the current way of doing business.
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What is Servitization?
Posted 13th November 2022
Andy Neely (University of Cambridge) says that servitization is: ‘the tendency of manufacturing firms to sell services and solutions rather than just products’. Another definition coined by Tim Baines (Aston Business School) says: ‘the term servitization is used to describe the transformation of a business to compete through a combination of services and products, rather than products alone.