Observations from Dr. Klaus Dohrmann, Vice President Strategy and Development, E&M Sector, DHL CSI
Manufacturers around the world are experiencing profound change. Growing competitive pressures are igniting extraordinary innovation driven by digitalization, particularly in the creation of entirely new business models.
As an example, instead of focusing on engine sales, Rolls Royce is now ‘selling thrust’, welcoming customers into a decade-long contractual relationship that guarantees engine operational uptime – in other words, outcomes for its customers. Meanwhile, GE is transitioning from a company that sells sophisticated machines to a company that sells solutions, and has identified a $25 billion market opportunity for capability-based service propositions.
These new business models place services at the heart of all activity. The manufacturer’s perspective is shifting away from products and features and towards helping customers achieve their own business goals. This process, known as ‘servitization’, is transforming traditional manufacturing strategies to concentrate on product-enabled service models that sell asset capabilities and operability.