Manufacturers see dollar signs in service—but only when CFOs see beyond risk

.:: My Interview with Jane Irene Kelly - Originally published at Sage Advice ::. For manufacturers today, making products is becoming less important to their long-term survival than servicing those products. But switching to a service-centric business model is a sea change for business leaders accustomed to selling physical products—and one CFOs may resist for several reasons. For one, many doubt whether a traditional manufacturer can generate significant revenue from activities typically handled by third-party providers. What’s more, moving to a service-centric model, or “servitization” in industry lingo, can take years to yield financial benefits. Many years, in fact. From a finance perspe

Why servitization is critical

.:: Originally published at ::. Ahead of this year’s Spring Servitization Conference, Dr Ali Ziaee Bigdeli explores three key reasons why companies should be considering a move towards servitization. One of the questions that keeps coming up when I talk about servitization is “what are the key examples that really demonstrate the scope of this concept?” There are many examples in the B2B world, where the concept originally took hold, but increasingly examples are emerging in the B2C world, and I often find that these examples that touch people’s daily lives as consumers help to make the point. Examples of servitization first emerged