So you want to servitise, but are you ready to financialise?

Abstract

Purpose This study aims to explore the requirements that manufacturing companies must meet when implementing advanced services involving financial solutions. Design/methodology/approach This study develops a framework to assess the applicability of advanced services from a financial perspective, which is applied in a multi-case study setting. Findings This study identifies relevant internal and external conditions to the business implementing financialised advanced services – such as the finance function’s level of sophistication, the capacity to assess market potential or the ability to use financial structuring to attract new financial players – that help predict the likelihood of adopting advanced services involving financial solutions. The research suggests planning operations as a “financial product” from the viewpoint of the financer and investor. Research limitations/implications The financing culture and market disparities may condition the relative weight of the dimensions analysed in the framework. Practical implications Launching services involving financial solutions is a complex process, and hence, the proposed framework can help managers identify the major adjustments needed to embrace those advanced service modalities. Originality/value This study investigates the role of financial solutions in advanced services, from both the conceptual and business perspectives.