Formulating service-oriented strategies for servitization of manufacturing companies

Servitization requires the acquisition and development of service-oriented capabilities. Research has contributed considerably to the investigation of the necessary capabilities for successful servitization and the introduction of numerous service-based capabilities. However, previous studies typically focus on proposing a general set of capabilities or processes for servitization. There is limited knowledge of how a manufacturing company can identify the necessary capabilities and plan the corresponding development actions following its servitization context. Through two phases of a case study, this research proposes a service-oriented strategy formulation method. The method supports the analysis of manufacturing companies’ servitization contexts that lead to appropriate identification of the necessary capabilities for successful servitization. This method further guides the formulation of service-oriented strategies as the strategic logic in how manufacturing companies implement servitization, including the corresponding actions to develop the required capabilities. Finally, the application in a Japanese office machinery manufacturer illustrates the applicability and usability of the proposed method in facilitating the formulation of service-oriented strategies for the servitization of manufacturing companies.