Transforming your business model from being product-based to service-based requires a strong strategy to ensure increased profitability as the end-result.

Servitization changes your business

Many companies are currently rethinking their offerings by adding services to existing product portfolios. Commonly referred to as servitization, this process can significantly improve both your value proposition, your strategic connection with customers and ultimately your profitability. But without a strong servitization strategy as your framework and guideline, the process may lead to an unclear business model without the ability to support the required change.

Servitization is a change - from delivering a product to the customer to delivering an outcome for the customer. Meaning, a value proposition change from the properties and performance of the product to the resulting effect of the service in the customer environment. A strong servitization strategy sets the vision for the change, outlines the business targets and defines the necessary steps to succeed.

Since 2019, FORCE Technology has been leading servitization projects for more than 130 Danish companies – creating a customized servitization strategy for each company. This has given us a unique insight into the practical business issues of servitization. Please visit project for more information.

Making the servitization strategy

A servitization strategy is created following the steps below:

  1. Collection of insights on customer insights on service pain and gains – and analysis of the insights using value proposition models to create new strategic service propositions. This forms the basis of the strategy. The service propositions are  tested using our design panel approach.
  2. Inspiration from template servitization business models. FORCE Technology provides a selection of servitization business models for inspiration.
  3. Definition of servitization vision and servitization business objectives, e.g. what do we want to achieve by servitization. This constitutes the business potential for the strategy.
  4. A high-level analysis of business model changes needed to support the service propositions using business model canvas. This constitutes a rough overview of the investments and costs needed to make the servitization transformation.
  5. Outline and define the strategic initiatives needed to execute to create the service propositions thereby achieving the vision and the objectives.

By starting your transformation journey with FORCE Technology, you will be supported through all the steps from customer insight, value proposition, business model - through validating technologies and creating a live test environment.

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Customer cases and references

Partially through the project, we have contributed to successful implementation of Servitization in both small and large companies in Denmark.

Find a selection of industry cases here (In Danish only).

Selected cases on Servtization transformations