Microsoft Dynamics Partners providing comparisons and opinions to professionals in the ERP/Accounting software selection process since 2009



Discover how to gain a competitive advantage through servitization

    Email | Print

    Servitization: Service as a business model

    Servitization is the process by which serving a client is becoming more and more important. Put simply, it involves smart services that change from costs to revenue. Often, data is the basis of these services. With this revenue model, the customer value shifts from profits from physical products to new profitable services. The main focus is on subscriptions to periodic services. Additionally, data helps to reduce costs and improve service.

    Image 1: The customer value shifts from physical products to eventually new profitable services

    Here are four ways to shift to a more competitive and service-oriented business model

    1. Analyze the customer’s activities to see what takes a lot of time but lacks the revenue. Offer consultancy as a service or certain maintenance contracts to maintain a regular flow of income.
    2. Eliminate your customer’s worries by engaging in a conversation about what products they are using and what problems they encounter. You can offer preventional maintenance to make sure you don’t run into unexpected complications. Moreover, this can all be done from a remote location.
    3. What is it that the customer is actually buying? If you identify the product in a different way, you can create new services such as leasing, rental, service & maintenance, and transport. Behind every product, there is a particular customer demand that you can fulfil. For example, you can regulate power levels of electrical aerial working platforms to make sure that they never come to a standstill.
    4. Use the newest technologies, like the Internet of Things, business intelligence, and for instance big data. You can gather data to log activities and make predictions about nearly anything. The options are unlimited and will save you costs in the long run.

    The rental and leasing industry can expect to see higher equipment turnover rates prompted by customer desires, which will demand increased asset management diligence around mid-term solution experience. Furthermore, this will inevitably lead to an increased need for flexibility in usage- and subscription-based contracts.

    Make sure you’re not lagging behind, and place servitization on the roadmap to keep your business up-to-date and ready for the future.

    With our latest version of DynaRent, we’re offering both proven and new ways to help your equipment-driven business thrive and grow—HiGH Software’s primary goal. Curious about the possibilities, challenges, and solutions? Please contact us at or visit

    Sign up to our newsletterDownload whitepaper

    Ask This Expert a Question / Leave a Comment