ICV topic of the year: Servitization

What is actually Servitization?

Offer combination of product and service

Servitization is particularly relevant for manufacturing companies. Instead of focusing solely on the products, the view is sharpened for the combination of products and the matching service. This business model innovation reflects the trend towards the service society.

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Focus on servitization in the quarterlies of the ICV Think Tank

Think Tank Quarterly 34 / April 2022

CONTENT

• Reading tip: Study "Beyond the Product" by Porsche Consulting
• Controlling of product-service-systems | Integration into service engineering - In the context of servitization, the boundaries between physical products and services and hybrid service bundles or product-service systems are blurred. This leads to a different product understanding in industrial companies. Controlling follows this change with modified instruments. The early integration of controlling into the methodological approach to the development of services is required. The long-established service engineering must therefore be supplemented by an evaluation level.
• Value-based Pricing | Approaches to servitization - The number of interaction options with the customer within their value-added processes is enormous. This is exactly where the paradigm shift of servitization takes place: While the focus is traditionally on individual products and services and marketing activities concentrate on business initiation and individual transactions, in servitization the entire interaction with the customer within their processes is the focus (Terho et al. 2012).
• Beyond the product | How industrial goods suppliers increase their competitive advantage through servitisation. In an interview (January 10, 2022), Marc Ziegler, Partner at Porsche Consulting, answers questions about the transformation of the industrial goods industry through servitization and the role of controlling in this.

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Think Tank Quarterly 33 / July 2021

CONTENT

• Reading tip "Service Controlling"
• Reading tip "Customer Value: Foundations – Innovative Concepts – Practical Implementation"
• The right KPIs for new business models | Controlling via customer value The Haufe Group has successfully mastered the transformation from publisher to digital company by boldly investing in digital solutions. The resulting business models are managed separately from the core business via customer value.
• From product to solution provider | The introduction of standard costs SARTORIUS AG has developed from a supplier of products and services to a solution provider. In order to take this development in management and controlling into account, the management structure was reorganized and the management system was refined. A fundamental part of this was a new standard cost approach.
• Understanding customers | More than just analyses and KPIs In an interview (July 3, 2021), Michael René Weber from the ISS International Business School of Service Management addresses questions about transformation through servitization and the role of controlling in this.

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Think Tank Quarterly 32 / March 2021

CONTENT

• Reading tip "Customer loyalty through cost-efficient service excellence"
• Subscription models for production plant and machinery | Insuring performance risks?
  Together with TRUMPF, Munich RE offers the use of subscription models in production. The risks that arise here can be managed in the network in order to create added value for everyone involved.
• Service excellence in B2B business models | Delighting customers with excellent service Companies that want to create strong and loyal customer relationships through inspiring customer experiences can use the new ISO standard for service excellence as a guide. For controlling, the sometimes soft measurement of employee and customer enthusiasm results in new creative leeway.
• Service controlling at Kärcher | Ideas from the controlling of a diversified service landscape In order to adapt controlling to new business models in both areas, services and products, Kärcher relies on a flexible management model. The characteristics of a business model define the use of controlling concepts.

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Think Tank Quarterly 31 / December 2020

CONTENT

• Reading tip „Servitization as a Competitive Factor: Opportunities for Business Models and Internal Processes”
• Fundamental elements of subscription models | Effects on corporate management
• The “servitization” megatrend poses new challenges for controlling
• How a business model transformation affected a software developer’s IT | Impulses for IT controlling from DATEV’s digital transformation

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ICV Ambassadors Servitization