How to Implement Servitization by Turning Service into Sales

Written By: Cam Dufty
  • 8/20/2019
  • Read Time : 2 mins
Service in manufacturing feature image

It used to be that the line between “Sales” and “Service” in manufacturing was clear-cut: Sales would sell a product and Service would make sure that product kept working once in customers’ hands.

New service strategies, made possible by the Industrial Internet of Things (IIoT), are blurring that line. For example, service teams are improving customer satisfaction through predictive maintenance initiatives and faster response times.

Those results are great for a service teams’ KPIs—but they can be even better for the entire enterprise-wide bottom line. That’s where the concept of “servitization”—defined as service-based initiatives that enable innovation and customer value across product offerings—is unlocking new revenue-driving opportunities.

Turning Service . . .

With IIoT-based service, service teams improve end-customers’ uptime, perform less on-site maintenance, and provide predictive maintenance. This decreases truck rolls and increases product life (saving internal service costs in the process).

. . . Into Servitization

With today’s IIoT-based servicing tools, outcome-based product-as-a-service models are turning service into servitization. For example, you can offer higher priced SLAS with tighter KPIS within a sales contract—all of which rely on the faster, more effective service and reliably maximized uptime that IIoT-based service teams can prove and promise. This creates a lower cost of machine ownership for your customer and a reduction in service-related costs for your company. As a result, you’ll decrease internal costs and increase contract renewals, as well as advance your reputation as a trusted and reliable business provider.

Extend Your Service Capabilities for Sales Innovations

Global engineering business Howden is a great example of creating new revenue through servitization. Howden provides customers with industrial products and solutions that help improve their everyday processes. For Howden, servitization has given both their customers and technicians a new view of equipment and has “completely changed the perception of owning Howden equipment.” 

In fact, based on IIoT-enabled service tools, Howden has developed a predictive service program called Uptime. Howden sells Uptime to customers as a supportive service offering. So with Uptime, they are “selling” service that drives internal revenue, is more customizable to their customers’ unique needs, and saves Howden from internal service costs.

Implementing servitization in manufacturing

Join the Servitization Transformation

Today’s servitization models are just the beginning. As technology evolves, so will IoT-connected service capabilities—and the adopters of product-as-a-service strategies today will become the competitive leaders of tomorrow.

If you’re a typical manufacturer, you’ve already implemented some industrial IoT initiatives. That’s a great start—but if you’re not using IoT to drive servitization, then you’re losing out on valuable revenue and insights. When implemented into a servitization strategy, IoT-connected service can lead to product-as-a-service offerings that are crucial selling points for new customers (as well as drivers for contract renewals from existing happy customers).

Learn More

Check out the new IDC white paper, IoT-Connected Service Drives Innovation and Customer Value, to learn how manufacturers like you are using IoT to enhance customer experiences, drive new revenue, and improve efficiencies.


  • CAD
  • Industrial Internet of Things
  • Service and Parts
  • Industrial Equipment

About the Author

Cam Dufty

Cam Dufty has been writing about software and emerging technology for more than ten years. At PTC, she works closely with IoT, AR and CAD experts to help tell the story of how smart, connected operations are revolutionizing manufacturing around the world.