Practices and Tools for Servitization by Marko Kohtamäki Tim Baines Rodrigo Rabetino & Ali Z. Bigdeli
Author:Marko Kohtamäki, Tim Baines, Rodrigo Rabetino & Ali Z. Bigdeli
Language: eng
Format: epub
Publisher: Springer International Publishing, Cham
11.3.1 Capabilities
BAS require manufacturing-based capabilities, including expertise in product design and product/process engineering (Ulaga & Reinartz, 2011). For example, maintenance services require knowledge about parts’ failures and durability over the product life cycle. Consistent with this, customers tend to value technical expertise when they buy product-based services. Because ADS are not product-centric, they do not directly require the development of manufacturing capabilities.
However, service-specific capabilities are required for the offering of both BAS and ADS. Offering services requires the ability to design services and products jointly (e.g., product design for serviceability; Ulaga & Reinartz, 2011). In addition, it demands expertise in designing and delivering service processes, which entail more frequent and complex interactions with customers than manufacturing processes. It may also involve setting up a separate organization to manage service provision, hiring and developing service-centred employees (e.g., with strong values of customer orientation, customization, flexibility, and quick response), and changing the incentive systems in order to foster integrated product-service performance (Baines & Lightfoot, 2014).
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