Servitization for dummies

What is Servitization? And Why is it important to understand it?

A year ago, wait no, two years ago (pandemic syndrome :P), when a few of my colleagues started talking about Servitization, little did I know that one day I will be writing about it.

So, why is it important to understand Servitization??Because Service is the buzzword these days. As a consumer, no matter what we intend to buy, be it a physical good vs digital experience or a one-time purchase vs recurring one, we all tend to prefer the choice that comes with services. And if a service is packaged well for an optimal cost & experience, that reduces our efforts or eases the process, then bingo!

To answer What is Servitization, I prefer the way of examples. Today a typical day from morning to night, is filled with Servitization examples. The term might sound technical to many. But it is much simpler than that.

So, let’s take a tour down a hypothetical Sunday!

0800 hours: Receive daily packet of milk through Country Delight’s daily milk subscription service

0900 hours: Ask Alexa to play some music. Alexa picks music from Amazon music, another yearly subscription of prime services

1000 hours: Cook breakfast using piped gas. A pay-as-you-use LPG cooking gas service from Bharatgas without any upfront cost

1100 hours: Time to get onto the internet to catch up with news and social media. Enabled by Jio Fibernet, a 6-months internet package with unlimited data at 100mbps

1200 hours: Order food using Swiggy food app, comes with free delivery and additional discounts on membership

1400 hours: Feel like getting a spa-at-home. Book a head and foot massage using Urban Company

1700 hours: Stream a web series on demand on Netflix with my subscription

2000 hours: Book an Uber on demand to catch up with friends over dinner

2200 hours: Get a delightful cup of dessert at Froyoland! Best part, pick your mix and pay only for what you pick, get charged by the weight!

So, although Servitization has multiple themes, for the sake of simplicity for now, ?

Servitization is a way to offer anything-as-a-service!        

It could be a product, or an outcome or a capability offered with a combination of one or more of the features such as: On-demand, Bundles, Subscriptions, Pay-per-use, Add-on value, etc.

Will be rolling more content on Servitization related topics in coming weeks. Stay tuned!