Servitization in Industry

This book summarizes the “interim result” of the servitization activities in manufacturing industries. While the early literature on servitization tended to stress only its advantages, more recently, scholars have also started to refer to the challenges associated with servitization. This book attempts to give a balanced picture of servitization. The book is structured in four parts: Part I introduces the topic by presenting the most recent academic discussion about servitization and uses an empirical analysis to show the degree of servitization across Europe. The results of this analysis are then compared to the discussion in the literature. This comparison highlights the existing discrepancies between the rather euphoric literature and the more skeptical practical experience. The second and third parts attempt to explain these discrepancies by taking as a starting point the assumption that servitization recommendations have to consider the heterogeneity of the manufacturing sector and the capabilities of the provider. Part II presents articles which analyze the specific characteristics of different sectors with their barriers and potentials and presents frameworks for a successful servitization of the core sectors in European manufacturing industries which include, e.g. aeronautics, automotive, ICT, chemical industries, pulp and paper industries and different engineering sectors. Part III focuses on companies’ capabilities which are necessary for successful servitization. These include strategic management, marketing, organization, innovation, engineering, human resources, controlling, quality and networks. All the contributions in parts II and III add up to a detailed picture of servitization for sectors and functions and indicate the practical implications for enterprises in manufacturing industries. The fourth part concludes the book with a chapter summarizing the findings and giving an outlook of servitization in manufacturing industries, its challenges and future developments.