Drivers for Growth in Service

This spring, Noventum in collaboration with Microsoft and IT solution provider HSO, researched the drivers for digital services business growth of product manufacturers and technical services companies operating in a data-driven and services-led world. Research participants came from a wide range of industries, and input was collected via in-depth personal interviews and an online electronic survey.

Over the past decade, there has been a large shift in contribution to revenue amongst manufacturing companies, namely from product derived revenues to service derived revenues, aptly known as the servitization trend. Simultaneously, their customers are looking for suppliers to provide more than just products and maintenance services. Customers are moving from large capital investments in products, to pay per use models, with high expectations of service and impact on their business outcomes. This research project was aimed at learning more about how companies grow and prosper in today’s services-led world.

Are you curious about the outcomes and key conclusions of this research project?

Watch the Webinar recordings and get all the insights we discovered:

• Webinar "Drivers for Growth in Service post COVID-19 webinar" describes how Maike van't Hoen, Head of Retail Service Product Management Team at Knorr Bremse and Martijn Reissenweber, Director Huisman Services discuss the key drivers of success for product manufacturers and technical services companies, the strategies being adopted to support these drivers and how companies organize themselves to take advantage of new opportunities. Watch the webinar here.
  
• Webinar "Drivers for Growth in Service" is a discussion between Alfonso Castaneda, Global Service Director at Coesia and Cyrille Godinot, Strategic Account Director, ExoStruxure Power at Schneider Elextric who share their experiences of how digitalization helped them in their business transformation. Watch the webinar here.

Interested in the Research outcome?

• Download the Executive summary here.
• Download the Full research report here.
  

Watch here the Research Summary Video

Listen to our Podcasts about the research and more:

• Podcast: Co-innovation with customers to develop and sell advanced services

  In this podcast Hilbrand Rustema, Managing Director is talking with Mohamed Lhari, Director Lifecycle Services Europe from the company Yokogawa, who is going to share with us a great example of how you can identify and develop new service business models together with their customers, they call this method Co-innovation. Listen to it here

• Podcast: Why Manufactures will turbo change their service business
  Highlights the findings of this research, and the validity of those findings in the context of the current COVID-19 crisis. Focus on the following findings:

1. Focus on service demands, vision of management and culture change,
2. Customers have increasingly higher expectations of product companies and
3. Digitization accelerates the market for new services. Listen to it here.

• Podcast: How Covid-19 accelerates growth in service for manufacturing companies
  Highlights the second part of the findings, related to the trends accelerated by covid-19 and the urgency to transform after covid-19. Focus on the follwing findings:

1. Working remotely and digitally has suddenly become extremely relevant. Companies that were struggling to adopt these new ways of working have to make this transition very quickly.
2. Cash flow has always been vital, but in times of a crisis it is even more important, for manufacturing companies and their customers.
3. Supply chain models will change, moving for example to more local sourcing. Listen to it here.

• Podcast: Obstacles and success factors for a successfull transformation
  Highlight the third part of the findings, related to technology platforms that companies need to facilitate the move to a services centric business.Focus on the following findings:

1. The need to establish new business models that meet customer demands. Customers have new and greater expectations of their suppliers. So how can you meet these demands?
2. Pricing pressure on products requires that companies look for alternative revenue streams.
3. Legacy IT-systems which support the ‘old’ products and services but are not able to support new services models and therefore slow down change. Listen to it here.

Read our Blog about the research here:

• Blog Serie 1: Why manufacturers will turbo charge their service business. Read the blog here.
• Blog Serie 2: How Covid-19 accelerates growth in services for manufacturing companies. Read the blog here.
• Blog Serie 3: Obstacles and success factors for a successful transformation. Read the blog here.