SUMMARY 2
PREFACE 3
Chapter 1: Introduction 9
This book 11
Purpose 11
Target 11
Scope 11
Research 12
Structure 13
PART I: WHAT IS SERVITIZATION AND WHAT ARE ADVANCED SERVICES 14
Chapter 2: Servitization, advanced services and outcomes 14
Business model thinking: a powerful lens to understand servitization 14
Services staircase: Understanding value propositions for servitzation 17
Advanced services and outcome thinking 20
Advanced services as outcome-based value propositions 22
Advanced services around products 24
Advanced services based around processes 25
Advanced services based around platforms 26
Risks 27
Chapter Summary 28
Chapter 3: Capturing value for advanced services 30
Foundations of value capture 30
Alignment of incentives across the value network: 31
Competency to manage risk: 31
Innovation pathway openness: 32
Economic value 32
Ownership 33
Subscription 34
Pay-per-use 35
Pay-per-outcome 36
Penalties 36
Blended revenue model 37
Strategic value 38
Knowledge value 39
Relational value 40
Key cost drivers and pricing 40
Chapter Summary 40
Chapter 4: Organising to deliver advanced services 42
Fundamentals of delivering advanced services 42
Systems thinking 42
Services language 43
Customer first 43
Innovation and Responsiveness 44
Brought together 45
Objectives 46
Design 47
Facilities 48
Supply 49
Partnerships 51
Digital 51
People 52
Processes 53
Chapter Summary 54
PART II: WHY SERVITIZATION AND ADVANCED SERVICES ARE IMPORTANT 55
Chapter 5: Broad drivers 55
Fundamentals when evaluating impact 55
Improving economic performance 56
Servitization, revenue and profit 57
Strengthening competitiveness of the firm 61
Defence 61
Growth 62
Icon of practice 64
Building business resilience 65
Servitization as an aid resilience 66
Icon of practice 69
Helping to achieve carbon NetZero and sustainability 70
Net Zero and servitization 71
Icon of practice 76
Pathway to improved productivity 78
Servitization and productivity 78
Icon of practice 81
Building exports, international trade, and emerging markets 82
Servitization exports, international trade and emerging markets 82
Icon of practice 84
Enabling new technology innovations to enter markets 85
Servitization and barriers to market entry 85
Icon of practice 88
Chapter Summary 89
PART III: HOW TO BRING ABOUT SERVITIZATION THROUGH THE INNOVATION OF ADVANCED SERVICES 91
Chapter 6: Exploring the processes of servitizaiton 91
Learning from experience 91
Explaining transformation 95
Stages 96
Exploration 97
Engagement 97
Expansion 98
Exploitation 98
Forces 98
Market centric forces 99
Technology centric forces 99
Value network centric forces 99
Organisation centric forces 100
Dynamics, tipping and exits 101
Pathways 103
Chapter summary 106
Chapter 7: Managing the innovation of advanced services 108
Framing the servitization process 108<...
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