More and more manufacturers move into services to solidify their positions in increasingly competitive markets and grow their revenues and margins. There are several reasons why companies venture into services. First, there are economic reasons since revenues from services are continuous (recurring) rather than discrete. Services often allow to charge higher margins and are less susceptible to economic cycles than equipment purchases. Second, customers nowadays often demand services, they want a solution for a certain problem they have. And third, strategic reasons include the creation of a competitive advantage. Companies find it more and more difficult to differentiate through products and develop unique value propositions. Services are less visible and therefore more difficult to imitate by competitors. As a senior manager of SKP once stated “Successful services is almost like being married to the customer. It represents a huge barrier to entry for competitors.” A prominent example for a successful transformation from a product to a solution provider is IBM. However, according to a Bain & co. Study, only 21% of companies succeed with their service strategies, and research shows that approximately half of all solution providers realize only modest benefits, and 25% actually lose money.
Companies need a better understanding of how they can ensure that their service activities succeed. To this end, the goal of the seminar “Customer focused innovation and Service excellence” is to provide insights into the following key issues:
From products to services: the shift from a goods-dominant to a service-dominant logic
Recognize how “service” can be a competitive advantage in any organization and how it can create value for customers and companies
Familiarize with the Service Innovation Design Experience Methods
During this day, participants will learn more about the importance and relevance of making the transition from a product to a solution provider and the key issues that have to be considered to create value for customers and companies. This day will not go into detail into the innovation process itself or how to organize the R&D department of firms, but will provide an introduction to Service Innovation Design Experience Methods.
This seminar was held on Friday May 9, 2014 by Dr. Elisabeth (Lisa) Brüggen, Assistant Professor of Marketing at the Departement of Marketing & SCM at Maastricht University.
Read more about Dr. Brüggen...