Profiting From Services and Solutions: What Product-Centric Firms Need to Know (Service Systems and Innovations in Business and Society)

Manufacturers and other goods-dominant companies are eager, yet struggling, to broaden their offerings by growing monetized services supporting customers. The literature and managerial best practices currently provide limited direction in this burgeoning and challenging area for growth. The overall goal of this book is to delineate the meaning and subsequent execution of 'service infusion,' which we define as the development and offering of services in goods-dominant firms as a growth or profit strategy. We develop a framework called The Service Infusion Continuum that identifies and explains what this growth entails, looks at the key factors that must be transformed and discusses their relationships. The research that underpins the book addresses the overall question: How does The Service Infusion Continuum provide a framework that can guide management, marketing, sales and other related organizational changes needed for goods-dominant companies to successfully grow services and solutions? We focus on business-to-business services that primarily support customers rather than entitlement and other relatively less complex services that support products. We review relevant literature, then share results from depth interviews in five Fortune 100 companies, and finally point to new directions and insights for managers Designed for executives in companies that manufacture or sell products, this book outlines the challenges of launching a service and solutions business within a product-oriented organization. The target audience-- manufacturers, industrial suppliers, technology firms, and other vendors of business goods--views services and solutions as a means to financial growth, reduced revenue volatility, greater differentiation from the competition, increased share of customer budget, and improved customer satisfaction, loyalty, and lock-in. The authors visualize the transition from products sold to services rendered and identify the challenges that leaders will face during the transformation. To overcome those challenges, the book shows leaders how to manage change in five areas: corporate structure ; corporate culture ; organizational metrics of performance, growth and investment ; individual skills and talent development ; and core competencies of collaboration and customization Designed for executives of companies that manufacture or sell products and students in an MBA program, this book outlines the challenges of launching a service and solutions business within a product-oriented organization. You might view services and solutions as a means to financial growth, reduced revenue volatility, greater differentiation from the competition, increased share of customer budget, and improved customer satisfaction, loyalty, and lock-in; but the authors visualize the transition from products sold to services rendered and identify the challenges that leaders will face during the transformation. Inside, the authors provide a framework—the service infusion continuum—to describe the different types of services and solutions that a product-rich company can offer beyond warranties, call centers, and websites that support customers in their use of products.

Designed for executives of companies that manufacture or sellproducts and students in an MBA program, this book outlinesthe challenges of launching a service and solutions businesswithin a product-oriented organization. You might view servicesand solutions as a means to financial growth, reducedrevenue volatility, greater differentiation from the competition, increased share of customer budget, and improved customersatisfaction, loyalty, and lock-in; but the authors visualize thetransition from products sold to services rendered and identifythe challenges that leaders will face during the transformation.Inside, the authors provide a framework—the service infusioncontinuum—to describe the different types of servicesand solutions that a product-rich company can offer beyondwarranties, call centers, and websites that support customersin their use of products.

Content: Introduction: transitioning from products to services and solutions -- The service infusion continuum -- Company configuration for services and solutions -- Capabilities: skills, training, and technology -- Customization: balancing uniqueness with operational realities -- Collaboration with customers: engaging customers in service and solution design, development, and challenges to offering new services and solutions -- Conclusion: cultivating a service and solution -- Appendix 1. Research approach, resources, and methodology -- Appendix 2. Company interview guide -- About the authors -- Notes -- References -- Index.