Definition of a conceptual scale of servitization: Proposal and preliminary results

Abstract

The servitization process, i.e. the gradual shift from product-centred value propositions to complex product-service systems offerings, has led many manufacturing companies to modify their business models and internal organization. It is clear that this is a rather short-sighted definition not taking into account how much a company is product or service-oriented, i.e. its servitization level. The idea herein discussed is to formalize the concept of a servitization scale, trying to operationalize the concept of servitization level shared by researchers and practitioners. The goal is to provide a conventional tool to measure or compare the servitization level of different manufacturing companies. To provide a preliminary evidence the possible use of the proposed scale, the paper presents: (i) an in-depth analysis of the servitization level of medium-large size Italian companies in the manufacturing sector; (ii) some examples of possible applications of the scale to support the strategic decision-making process and planning of the servitization process.