The global economy is moving towards Service-based models, in which customers buy the benefits and outcomes of a product, rather than the product, itself. This is the process we call Servitization.

End user customers are becoming more attracted to the simplicity and added value of buying servitized products, so it is essential for product and service suppliers to move confidently and rapidly to a service-based model. Early adopters are likely to gain rapid competitive advantage. Those who hesitate may lose share and see their margins squeezed.