What is servitization?

According to Baines and Lightfoot, servicization can be seen as the transformation from the mere sale of products to the sale of an integrated combination of products and services that creates value for customers. These product-related services can include basic, traditional services (such as after-sales service, maintenance, or financing) as well as more advanced, complex offerings (such as component availability, product customization, or visibility into inventory levels). Servicization should be viewed as a continuum, ranging from a pure product to a pure service. Servicization has become essential for French industrial companies.