Manufacturers are strategically investing in their service business as customers are increasingly demanding “Everything as a Service” resulting in new service business models that drive new value for customers and profitable growth for manufacturers. There are several trends behind this Servitization drive by manufacturers:
Increased complexity of Technology
Technology is becoming so complex that the technical and operational risks can best be managed by the producers of the technology in use that are the experts with the knowledge and experience obtained from often thousands of customers.
Competitive advantage through data analysis
Products are connected through IoT and the data that is generated by these products help improve reliability through predictive maintenance. The data obtained can also provide new business insights that can be used to optimize business processes and can help create new competitive advantage through customer business optimization services.
Equipment as a service
As the risks of managing technology assets can now be managed through remote monitoring, financing companies see acceptable risks and rewards from financing “equipment as a service” propositions enabling manufacturers to gain back market share from low-cost competitors as well as enlarging their scope of supply with bundled services.
However, service transformation programmes are challenging for product-oriented manufacturers that want to grow their service business as they face challenges in changing their culture, business models, approach to selling, redesigning their operating model en implementing new IT architectures to enable the business change.
Companies that are the forefront of service transformation will come out as winners while the laggards may end up at the bottom of the value chain as a commodity service provider stuck in a downward pricing spiral in a “race to the bottom”. Therefore, managers need to benchmark their performance against their peers and make sure they stay ahead.Get Started
This research aims to provide the financial facts about service growth and profitability achieved by the leading manufacturers as a result of investing in new services development, service transformation programmes and the enabling IT infrastructure.
Participants of this 2021 Service Growth Benchmark will be able to benchmark their company performance against their peer group data to answer question such as:
What is the growth and profit potential of investing in the development of new services?
What are the types of services and service business models that achieve superior results?
What was the level of investment by Best in Class companies and in which areas did they invest?
What are the key success factors of the top performing companies?
What role does digitalization play for B2B manufacturers? Will technology solve all challenges? Will it enable an easy transformation from reactive to preventive to proactive services? Service growth does not happen without technology! But you must first understand what problems you are solving with digitalization – this is critical! Digitalization requires a big company culture change. It requires shifts in processes, the sales organization, skills, and business model. How can manufacturers prepare themselves before embarking on this digital journey? How can you scale your business? Watch Hilbrand Rustema of Noventum and Marne Martin of IFS share their knowledge.
Benchmarking can help companies to monitor the progress when trying to innovating to keep pace with customers expectations and market pressure. Watch this video with Sarah Nicastro from Future of Field Service to hear more about the importance of Service Benchmarking.
The focus is on the Manufacturing such as machine building , medical equipment, or any other equipment manufacturers that provide technical services and have the objective to grow their service revenue in a profitable and sustainable way.
Yes your data is safe and it will only be used by Noventum for benchmarking purposes. We will never share individual company data with other companies or organisations. In the final research report that will be published we only will use averages of aggregated data but never individual company data. The name and details of your company will not be known to others. An Non Disclose Agreement is provided to all companies that participate in this research project.
Our benchmark system will create peer groups of similar companies based on criteria such as size of the company, type of services provided, level of maturity and a statistical validation of the data to ensure that the performance of the company fits within the peer group. Then we benchmark the top 10% best in class performers with the rest of the peer group. Each participating company will receive an individually generated report that compares the performance of that company with the best in class performers.
Not always. It is likely that at least some of your direct competitors are also in our database but the benchmark is based on statistically comparable companies within one peer group. Often we see that the products or technology that a service organisation is very different but the operating model is comparable and therefore a better basis for a benchmark. Growth and profit performance is also more correlated to the type of services that are provided and the level of maturity of the service operations rather than the product or technology that is being served.
Participating in this research is free of charge, you will receive your individual benchmark report and the final report with the general conclusions is also free of charge. Participation in our executive roundtables is also free of charge.
The research is conducted by Noventum Service Management Consultants. Noventum is specialized in helping manufacturers grow profitable and sustainable revenue streams from services. We help identify new service value propositions, design new services and help manage the organisational transformation towards new service business models. Noventum provides best practices from research and service industry standards, best practice IT solutions with the leading solution vendors, training and a proven service transformation methodology. More information can be found on the Noventum website
Participants will be able to see how their financial performance compares to other similar companies and gain new strategic insights about what they can improve, how to invest wisely, which type of services are providing the best financial results. This information can be used as input into a company’s service vision and strategy setting process. Participating in the executive roundtables will provide the insights into the story behind the financial figures and improve understanding on what are the key success factors that drive superior financial performance. It is an opportunity to share experience with peers and have open discussions about the common challenges encountered in service transformation programmes.
The benchmark is ongoing and we will periodically release a report with key trends and general conclusions. The report is automatically generated based on the current number of participating companies.The number of participating companies in this benchmark is still growing and our benchmark system is a database that is continuously updated. Therefore we encourage you to check in periodically to see how your company performance develops compared to your peer group.