The formulation and implemetation of a servitization strategy : factors that aught to be taken into consideration

Abstract

The concept “servitization” has its genesis in a paper by Vandermerwe and Rada (1983:315). It is suggested that it is a concept that has increasing relevance with the emergence of the global services economy (Weeks 2008:40; Fitzsimmons & Fitzsimmons 2008:3). Increasingly manufacturing institutions are adding layers of services to existing manufacturing systems, without due consideration to the strategic and operational consequences thereof. It is suggested that consideration aught to be given to developing a servitization strategy in responding to a services dominant global economy. Factors that need to be considered in the formulation and implementation of a servitization strategy are analysed on the basis of a multidisciplinary literature research study and the key findings and insights gained constitute the focus of this paper.