Beyond the Machine

Embracing the Human Core of Servitization

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Key Take-Aways

Servitization is reshaping industrial machineryThe move from selling products to providing service-based solutions signifies a major industry shift. Service is a promiseMore than a product, service is a commitment to deliver value and meet customer outcomes consistently. Mindset over machineryThe transition to a service-oriented business model requires a cultural shift, prioritizing the service mindset across the organization. Change management is crucialEffective adoption of new technologies hinges on a well-planned change management strategy that focuses on people. Early planning for changeChange management should begin at the conceptual stage of new digital tools, not after their implementation. Holistic approach to service deliverySuccessful servitization depends on seamless collaboration among all stakeholders and a comprehensive delivery model. Organizational complexity can hinder transitionThe inherent complexities within the machinery and organizational structures can be major obstacles to achieving a servitized business model. Technology is a tool, not a solutionWhile essential, technology serves as an enabler of service; the real deliverable is the experience and outcomes it helps create. Training and support are keyEquipping employees with the necessary skills and knowledge is fundamental to ensure the integration of new processes and technologies. People are the drivers of changeSustainable success in the servitization journey is led by people empowered by the right tools and guided by a service-centric philosophy.

Management Summary

In the evolving landscape of industrial machinery manufacturing, the paradigm is shifting from traditional sales to a service-oriented approach. This report delves into the concept of servitization, where businesses transition from selling products to offering comprehensive solutions that include products-as-a-service and outcomes-as-a-service. This report highlights the essential need for a holistic service delivery model, emphasizing that the complexity of both machinery and organizational structures can often be significant obstacles. It underlines the importance of a company-wide cultural shift, organizational restructuring, and the adoption of modern technologies to support this new model. However, a common pitfall in this digital transition is the lack of focus on change management, particularly in environments dominated by engineering mindsets. The successful implementation of digital tools isn't solely measured by the technology's capabilities but also by the user adoption rates. We discuss how organizations often complete technical implementations within budget and timeframe, yet fail to integrate these tools into daily operations due to overlooking the human element—the mindset change needed among the employees. This report advises incorporating change management early on, even before the technical and functional requirements are set. It calls for a service mindset that must be fostered at all levels, from leadership to frontline staff, to ensure sustainable implementation of new technologies. The ultimate message is that while technology is vital, it is the people and their service mindset that fulfill the true promise of servitization. The summary concludes by reiterating the core message: service is not just a department or a function—it is a commitment and a way of thinking that must permeate the entire organization to truly meet the evolving demands of the servitization era.

Service: More Than Just a Product, It's a Promise

In the world of making industrial machines, there's something very important that keeps businesses running smoothly, and it's not just the machines themselves. It's something you can't touch, but it's key to everything - and that's service.

Service: The Hidden Promise

Think about when someone buys a big, complex machine for their company. They are not just paying for a pile of metal and parts. They're really buying a promise. They want to know that this machine will do its job well and help their business. Service is our way of making sure that happens. Service is our promise that we're always there to help - to make sure the machines keep working and to fix any problems. It's a promise that doesn't end when the machine is sold. It's a long-term commitment.

The Service Mindset: It's All About Attitude

Having good service means everyone in our company needs to care about our customers' happiness and success. It's not enough to just follow the rules of good customer service. We need to build a culture where every single person, from the designers to the salespeople, from the workers building the machines to the customer service team, is focused on making customers happy. We all need to really want to help our customers, to go the extra mile to solve their problems. This means we need to work together, share the same goals, and always be ready to do more.

Making Service Something You Can Buy

Service is usually something we just do. But we're also making it something customers can buy, like a product. This means we create special service packages that our customers can choose from. These could be different kinds of help and support like having someone ready to answer calls all day, every day, or someone who can quickly come to fix a machine if it breaks down, or even using new tech to spot problems before they happen. By turning our service into a product, we make our silent promise something solid. We show our customers that we're serious about supporting them. It helps them see the value of what we promise, making our service clear and real. Service in industrial machinery is not just about what we sell; it's about the promise we make to be a trusted partner to our customers. It's this promise that keeps their machines - and businesses - running smoothly.

The Shift to Servitization: From Products to Promises

In the world of industrial machines, something big is changing. Companies aren't just looking to buy machines anymore. They want more than that. They want results. This is part of a big trend called "servitization."

Servitization: The Trend of Offering Results

Customers are now shifting their focus. Instead of just wanting a specific machine, they're asking for what that machine can do for them. They're interested in the outcomes, what the end result of using the machine will be. This change is leading the industry towards a new way of doing business.

New Service Models: From Selling to Partnering

As part of servitization, we're seeing businesses move through different stages of offering service. At first, companies just sold products – the actual physical machines. But now, we're moving towards "Product as a Service" (PaaS). This means customers use our machines, but they don't own them. We take care of maintenance and updates. They just pay to use the machine, like renting. But it's going even further with "Outcome as a Service" (OaaS). With OaaS, we're not just offering a machine, not even just the service. We're promising a specific result. For example, instead of selling a printing press, we might promise a certain number of high-quality printed materials at a fixed price.

Why the Service Mindset Matters More Than Ever

With these new service models, our service mindset becomes even more important. We need to make sure we understand our customers' needs and focus on delivering the results they want. This means everyone in our company must work together even more closely to keep our promises. The machines we make are still important, but how we promise to deliver results with them is now key. This is a big change, and it's all about service. It's about making sure our customers can count on us not just for a machine, but for the success that comes from using that machine. In summary, as the market moves towards servitization, our promise – our service – is more important than ever. It's not just about the products we make; it's about the outcomes they deliver and the ongoing support we provide. This is the new way of doing business in the industrial machinery world. It's a change from selling products to partnering for success. And it's a trend that's shaping the future of our industry.

Navigating the Servitization Wave: The Demand for Holistic Service Delivery

As the industrial machinery market embraces servitization, the shift from selling products to selling outcomes demands a transformation within our organizations. This trend doesn't just create new service offerings, it requires a complete overhaul of how we operate.

Embracing Holistic Service Delivery

With servitization, service delivery needs to be all-encompassing. It's no longer about individual parts or services, but about delivering a complete package. This comprehensive approach can challenge our organization, stretching the capabilities of our team and testing the cooperation between departments.

Collaboration for Complex Challenges

The complexity of our machinery and market is mirrored within our own organizational structures. These complexities can be stumbling blocks on the road to servitization. Making the leap to a servitized business model isn't just about innovation in our products—it's about reinventing our entire workflow, and that starts with our people.

Culture: The Mindset of Change

A shift in mindset is the first essential step. We must cultivate a culture that's agile, customer-focused, and collaborative. Every team member must understand the importance of outcomes over outputs. This is a cultural revolution, moving from individual success to collective responsibility for the service promise we make to our customers.

Restructuring for Servitization

New organizational structures and processes are critical to support servitization. We need to design a company that can adapt quickly, learn from interactions with customers, and continuously improve service offerings. This might mean creating new roles or teams dedicated to service delivery, or it could mean restructuring current roles to have a more direct line to customer outcomes.

The Role of Modern Technology

Technology is the great enabler in this transformation. Modern digital tools help us analyse data, anticipate customer needs, and deliver on our service promises more effectively. From predictive analytics to customer relationship management systems, technology provides the support our people need to deliver the holistic service our customers expect.

Service: The Enduring Promise

As we integrate these changes, we must always remember: "Service is a promise, a mindset." The lasting success of our shift to a servitized business model rests on our people. While technology and processes are critical, they are, ultimately, tools that support the human element. Our employees, their commitment to the service mindset, and their dedication to our customers' success are what will make this transition not just possible, but sustainable. In conclusion, the journey towards a servitized model is complex and challenging. Yet, it is achievable with a committed cultural shift, organizational restructuring, and the strategic application of technology. These are but avenues to fulfil our foundational promise—a promise that service is not just what we do; it is who we are.

Change Management: The Human Element in Digital Tool Implementation

In the realm of industrial machinery manufacturing, where engineering expertise is the bedrock of progress, we have a natural affinity for tools and technology. As engineers and technical professionals, we're drawn to the sleek efficiency of new digital solutions, and we often excel at the technical aspects of implementation. However, there's a critical oversight that frequently occurs—the underestimation of change management.

The Technical Triumph vs. The Human Hurdle

Technically, digital tool implementations in our industry often go off without a hitch. Projects are completed on time, within budget, and the tools do exactly what they're designed to do. Yet, we frequently encounter a startling disconnect: the adoption of these tools lags far behind. People are reluctant to integrate new digital solutions into their daily routines, citing a lack of time or a preference for the old ways of working. The tool that was supposed to revolutionize our workflow sits underutilized, and efforts to rectify the situation post-implementation can be frustratingly difficult.

Anticipating Change, Preparing People 

The lesson here is clear: successful implementation isn't just about the tool itself; it's about the people using it. Change management should begin not just at the point of implementation but from the earliest stages of planning and design. When we draft technical and functional requirements, we must also consider the human requirements—how will this change affect our team? How will their workday look different? How can we prepare them for this shift?

Change Management as a Service to People

Service, as we understand, is a promise, a mindset that focuses on fulfilling a need. This service-oriented approach must extend to our change management strategies. We should be serving our people by guiding them through changes, not just offering them new tools. That means investing time in training, providing clear communication about the benefits, and ensuring there is ample support available for the transition.

Why Our Focus Must Shift from Tech to People

The propensity to favour technology over people-centric strategies is a reflection of our engineering mindset, we're fascinated by what's tangible and solvable through logic and data. People, with their diverse reactions to change and complex motivations, present a different kind of challenge. It's one that can't be met with code or machinery, but with empathy, communication, and leadership.
As we advocate for service as a promise and a mindset, we must apply the same philosophy to how we implement change within our organizations. Our tools and technologies are only as effective as the people who wield them. Therefore, it is imperative that we shift our focus to our teams, understanding their needs, and supporting them through the evolution of our work environment.
In conclusion, while our love for technology is a strength, it should not overshadow the necessity of managing human change. We must bring our people along on the journey of digital transformation, not as passengers, but as active participants. By focusing on people first, we can fulfill the true promise of service—a commitment to the collective success of our teams and, by extension, our clients.