Made to Serve

A comprehensive, practical introduction to one of the most important new trends in manufacturing, globally The delivery of a service component as an added value when providing products, servitization is all the rage in the manufacturing sector around the world. Yet, despite the clear competitive advantage of servitization, most manufacturers remain reluctant to venture into, what for them, is a strange new world. Written by a team of internationally respected servitization experts and innovators, this book provides you with a detailed road map for successfully navigating the servitization terrain. Unlike most authors on the subject who merely sing the praises of servitization, Baines and Lightfoot provide you with a framework for accessing the feasibility of adopting a services-led competitive strategy in your company, along with strategies for designing and implementing the kinds of service offerings customers increasingly are coming to expect. Grounded in real-world practice and supported by a wealth of up-to-the minute research, this book helps ease the way for manufacturers considering adopting a servitization model Shows how to exploit your company's manufacturing competencies to build a strong servitization element without becoming "e;just another services company"e; Provides numerous illustrations and examples of services-led competitive strategies, with an emphasis on the advanced services most widely associated with servitization worldwide Packed with fascinating and instructive case studies from leading manufacturing firms across industry sectors, including Caterpillar, Rolls-Royce, Alstom, MAN, Xerox and others

A comprehensive, practical introduction to one of the mostimportant new trends in manufacturing, globallyThe delivery of a service component as an added value whenproviding products, servitization is all the rage in themanufacturing sector around the world. Yet, despite the clearcompetitive advantage of servitization, most manufacturers remainreluctant to venture into, what for them, is a strange new world.Written by a team of internationally respected servitizationexperts and innovators, this book provides you with a detailed roadmap for successfully navigating the servitization terrain. Unlikemost authors on the subject who merely sing the praises ofservitization, Baines and Lightfoot provide you with a frameworkfor accessing the feasibility of adopting a services-ledcompetitive strategy in your company, along with strategies fordesigning and implementing the kinds of service offerings customersincreasingly are coming to expect.* Grounded in real-world practice and supported by a wealth ofup-to-the minute research, this book helps ease the way formanufacturers considering adopting a servitization model* Shows how to exploit your company's manufacturing competenciesto build a strong servitization element without becoming "justanother services company"* Provides numerous illustrations and examples of services-ledcompetitive strategies, with an emphasis on the advanced servicesmost widely associated with servitization worldwide* Packed with fascinating and instructive case studies fromleading manufacturing firms across industry sectors, includingCaterpillar, Rolls-Royce, Alstom, MAN, Xerox and others

Preface xiForeword xv1. Introduction 11.1 Terminology and Scope 41.2 Knowledge Base 101.3 What's New Here? 141.4 Navigating This Book 16Part 1: Business Context 192. Business Context for Servitization 232.1 An Economic Perspective 242.2 An Environmental Perspective 302.3 A Market and Social Perspective 372.4 A Technology Innovation Perspective 392.5 A Knowledge Perspective 422.6 Summarizing the Business Context 49Part 2: Competing Through Services 513. Elements of Servitization 553.1 The Challenge of Visualizing What it Can Mean to Servitize 573.2 A Process of Servitization 613.3 Defining Base, Intermediate and Advanced Services 643.4 Features Commonly Coupled to Advanced Services 693.5 A Summary of Advanced Services 764. Business Implications of Advanced Services 794.1 Setting Out to Explore Financial Performance 804.2 Services, Revenues and Profitability 824.3 Motivations of Manufacturers Providing Advanced Services 874.4 Motivations of Customers Adopting Advanced Services 944.5 A Roadmap of Servitization and Advanced Services 100Part 3: Service Delivery System 1035. Delivery of Advanced Services 1075.1 Searching for Leaders 1075.2 A Perspective Against the World of Production 1105.3 Advanced Services and Product-Service Systems 1125.4 Service Delivery System for Advanced Services 1165.5 Key Capabilities of a Service Delivery System 1195.6 Chapter Summary 1226. Performance Measures and Demonstration of Value 1236.1 A Pyramid of Performance Measures 1246.2 Customer Facing Measures of Performance 1266.3 Macro Internal Measures of Performance 1286.4 Local Internal Measures and Indicators of Performance 1316.5 Demonstration of Value 1346.6 Chapter Summary 1387. Facilities and Their Location 1437.1 Facilities in the Delivery of Advanced Services 1447.2 Impact of Facilities and Their Location 1487.3 Mitigating the Need for Co-Location 1497.4 Chapter Summary 1518. Vertical Integration and Organizational Structure 1538.1 Organizational Structure in the Delivery of Advanced Services 1548.2 Vertical Integration in the Delivery of Advanced Services 1598.3 Impact of Vertical Integration and Organizational Structure 1638.4 Mitigating the Need for Integration 1668.5 Chapter Summary 1679. Information and Communication Technologies 1699.1 ICT Architecture in the Delivery of Advanced Services 1709.2 Monitor 1739.3 Transmit and Store 1759.4 Analyse and Respond 1769.5 Impact of ICT Capabilities 1789.6 Chapter Summary 17910. People Deployment and Skill-Sets 18110.1 Deployment of Staff in the Delivery of Advanced Services 18310.2 Behaviour and Skill-Sets of Front-Office Staff 18510.3 Culture, Leadership and Incentives in the Front Office 19110.4 Impact of an Integrated Skill-Set 19410.5 Chapter Summary 19711. Business Processes 19911.1 Services Processes in a Production Environment 20011.2 Business Processes in the Delivery of Advanced Services 20411.3 Proactive Processes as the Core for Advanced Services Delivery 20811.4 Chapter Summary 211Part 4: Readiness to Servitize 21312. Starting a Transition 21712.1 Summarizing Servitization, Advanced Services and their Delivery System 21812.2 A Readiness to Servitize 22112.3 Overcoming the Obstacles to Transformation 23012.4 The Journey Continues 232Appendix: Acknowledgements and Guiding Studies 235Index 243