Made to Serve

A comprehensive, practical introduction to one of the most
important new trends in manufacturing, globally

The delivery of a service component as an added value when
providing products, servitization is all the rage in the
manufacturing sector around the world. Yet, despite the clear
competitive advantage of servitization, most manufacturers remain
reluctant to venture into, what for them, is a strange new world.
Written by a team of internationally respected servitization
experts and innovators, this book provides you with a detailed road
map for successfully navigating the servitization terrain. Unlike
most authors on the subject who merely sing the praises of
servitization, Baines and Lightfoot provide you with a framework
for accessing the feasibility of adopting a services-led
competitive strategy in your company, along with strategies for
designing and implementing the kinds of service offerings customers
increasingly are coming to expect.

• Grounded in real-world practice and supported by a wealth of
  up-to-the minute research, this book helps ease the way for
  manufacturers considering adopting a servitization model

• Shows how to exploit your company's manufacturing competencies
  to build a strong servitization element without becoming "just
  another services company"

• Provides numerous illustrations and examples of services-led
  competitive strategies, with an emphasis on the advanced services
  most widely associated with servitization worldwide

• Packed with fascinating and instructive case studies from
  leading manufacturing firms across industry sectors, including
  Caterpillar, Rolls-Royce, Alstom, MAN, Xerox and others

Auteur

About the authors

Professor Tim Baines leads Aston Business School's research on servitization. He is an international authority on servitization, and works extensively with manufacturers to transform their operations to compete through Product-Service Systems (PSS). He has published over 200 papers across the disciplines of management and engineering, and is amongst the most frequently-cited authors on servitization and Product-Service Systems. He has experience of a wide range of industrial engineering, technology management, and manufacturing management disciplines, and works with the leading companies in his field including Rolls-Royce, Caterpillar, Alstom, MAN and Xerox. His career started with a technician apprenticeship, and has progressed through a variety of industrial and academic positions, including that of Visiting Scholar within the Centre for Technology, Policy and Industrial Development at the Massachusetts Institute of Technology. He is a Chartered Engineer and a Fellow of both the Institution of Mechanical Engineers and the Institution of Engineers and Technologists. Dr Howard Lightfoot is Manufacturing Systems Consultant and during the past seven years his work as a university Senior Research Fellow has focussed on the field of Servitization and Product-Service Systems where he has published extensively and is considered to be a leading authority in this area. Along with his co-author he works with the leading companies in his field including Rolls-Royce, Caterpillar, Alstom, MAN and Xerox. He has a First Class Honours Degree and PhD in Physics and is a Chartered Engineer and Fellow of the Institution of Engineers and Technologists. His career began as a lecturer in Electronic Engineering at Loughborough University before moving into industry where he held senior manufacturing operations and management positions within manufacturing companies such as Marconi and the Volex Group and held board level positions in several SMEs supplying Automotive, Defence and Aerospace sectors. He has over 25 years of experience in high technology product development and manufacturing with international business development experience gained in Western Europe, USA and the Far East.

Résumé
A comprehensive, practical introduction to one of the most important new trends in manufacturing, globally The delivery of a service component as an added value when providing products, servitization is all the rage in the manufacturing sector around the world. Yet, despite the clear competitive advantage of servitization, most manufacturers remain reluctant to venture into, what for them, is a strange new world. Written by a team of internationally respected servitization experts and innovators, this book provides you with a detailed road map for successfully navigating the servitization terrain. Unlike most authors on the subject who merely sing the praises of servitization, Baines and Lightfoot provide you with a framework for accessing the feasibility of adopting a services-led competitive strategy in your company, along with strategies for designing and implementing the kinds of service offerings customers increasingly are coming to expect.

• Grounded in real-world practice and supported by a wealth of up-to-the minute research, this book helps ease the way for manufacturers considering adopting a servitization model
• Shows how to exploit your company's manufacturing competencies to build a strong servitization element without becoming "just another services company"
• Provides numerous illustrations and examples of services-led competitive strategies, with an emphasis on the advanced services most widely associated with servitization worldwide
• Packed with fascinating and instructive case studies from leading manufacturing firms across industry sectors, including Caterpillar, Rolls-Royce, Alstom, MAN, Xerox and others

Contenu

Preface xi

Foreword xv

1. Introduction 1

1.1 Terminology and Scope 4

1.2 Knowledge Base 10

1.3 What's New Here? 14

1.4 Navigating This Book 16

Part 1: Business Context 19

2. Business Context for Servitization 23

2.1 An Economic Perspective 24

2.2 An Environmental Perspective 30

2.3 A Market and Social Perspective 37

2.4 A Technology Innovation Perspective 39

2.5 A Knowledge Perspective 42

2.6 Summarizing the Business Context 49

Part 2: Competing Through Services 51

3. Elements of Servitization 55

3.1 The Challenge of Visualizing What it Can Mean to Servitize 57

3.2 A Process of Servitization 61

3.3 Defining Base, Intermediate and Advanced Services 64

3.4 Features Commonly Coupled to Advanced Services 69

3.5 A Summary of Advanced Services 76

4. Business Implications of Advanced Services 79

4.1 Setting Out to Explore Financial Performance 80

4.2 Services, Revenues and Profitability 82

4.3 Motivations of Manufacturers Providing Advanced Services 87

4.4 Motivations of Customers Adopting Advanced Services 94

4.5 A Roadmap of Servitization and Advanced Services 100

Part 3: Service Delivery System 103

5. Delivery of Advanced Services 107

5.1 Searching for Leaders 107

5.2 A Perspective Against the World of Production 110

5.3 Advanced Services and ProductService Systems 112

5.4 Service Delivery System for Advanced Services 116

5.5 Key Capabilities of a Service Delivery System 119

5.6 Chapter Summary 122

6. Performance Measures and Demonstration of Value 123

6.1 A Pyramid of Performance Measures 124

6.2 Customer Facing Measures of Performance 126

6.3 Macro Internal Measures of Performance 128

6.4 Local Internal Measures and Indicators of Performance 131

6.5 Demonstration of Value 134

6.6 Chapter Summary 138

7. Facilities and Their Location 143

7.1 Facilities in the Delivery of Advanced Services 144

7.2 Impact of Facilities and Their Location 148

7.3 Mitigating the Need for Co-Location 149

7.4 Chapter Summary 151

8. Vertical Integration and Organizational Structure 153

8.1 Organizational Structure in the Delivery of Advanced Services 154

8.2 Vertical Integration in …