What Influences the Servitization Process the Most? A Perspective of Polish Machinery Manufacturers

Justyna Kozlowska

doi:10.3390/su12125056

Abstract

The servitization of manufacturing is an increasingly popular way to win market competition and maintain this advantage as well as to ensure more sustainable development of the manufacturing sector. To make this strategy effective, many aspects should be considered. This study mainly aims to identify the most significant factors influencing the process of servitization in the manufacturing sector. An additional research problem that emerged in the research process was aimed at determining the factors perceived by entrepreneurs as more important compared to others, and, correspondingly, the reasons behind such differences of opinion. This article is supported by the results of a literature review, the outcomes of a questionnaire survey (conducted with 150 Polish machinery manufacturers), and the findings of in-depth interviews with experts. In the light of the results of the quantitative research, the most important aspects that determine the servitization process are customer requirements and preferences; economic and financial aspects; added value for the customer and the company; and also the relations, stakeholders and partners of the service processes. More specific determinants, such as long-lasting and stronger relationships, organizational strategy, legal regulations regarding the provision of long-term services, and the economic benefits of service recipients, were indicated by experts as crucial in product–service integration. Also, employees’ competencies were emphasized as vital for extending the service activity of manufacturing companies. The contribution of this study is twofold. First, it identifies the most important aspects for the analysis of a manufacturer starting out on the servitization path. Second, the study reveals differences in the perception of the importance of certain factors that appear to be related to the experience related to the provision of services by machine manufacturers. Hence, some practical guidelines may be drawn for managers of manufacturing companies who plan to extend their service offer.

Highlights

The servitization of manufacturing is a trend which involves manufacturing companies introducing increasingly more service components into their offer [1]
According to the results of the study, over 80% of the machine and device manufacturers offered their clients services related to manufacturing activity
For a beginner, when services are an add-on to a product offer and are rarely provided, technical organization of product and service integration or partnership with other stakeholders may appear irrelevant or easy to establish, and, secondary compared to customer requirements or financial and non-financial benefits and barriers to service provision

Summary

Introduction

The servitization of manufacturing is a trend which involves manufacturing companies introducing increasingly more service components into their offer [1] It describes the growing share of service activity within the manufacturing sector, which may be observed in most economies worldwide [2]. “servitization” is described as a process of change in which manufacturing companies adopt new business orientation models for the provision of services. They develop the offer by a higher number of more advanced services to meet customer needs, achieve a competitive advantage and increase the efficiency of operations [4]. Examples like IBM, Rolls-Royce Aerospace, or Xerox are among the most commonly used in the literature as examples of manufacturers who turn into service and solution providers rather than product sellers [8,9,10]

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Conclusion