Servitization in the Medtech industry

I find this subject very interesting and many of the videos included in the course confirm spot on the challenges that I experience in the medtech industry. It feels good to know that the outcome from the research is very applicable!

Servitization, or service infusion, is a way of differentiate products. It means delivering service as a component that adds value to the product.

From what I know, the equipment manufacturers in the Medtech industry have followed the traditional pattern of first introducing services for free (like installation, assessment of equipment needs and basic product training). Next step is that the customer would like help with e.g. long term technical service and education and these services can then be charged for.

In a multi-national goods dominated company charging for services probably starts as a local initiative and not pro-actively through a global organization. I think that it is at this point the challenges start to emerge. In the global organization as: “creating a service culture”, “development processes” and “goals but no strategies”. In the local organization there are other challenges such as “sales force resistance” and “launching new services that are more sophisticated”. From originally being a bottom-up approach I think this is the turning point to start working top-down to be able to scale the service business up. If this situation is recognized by management, the servitization forces the company to increase the global resources and to create a service business unit. If not, the local organizations will continue to develop the service offerings and revenues, but probably at a low pace. Then the global replication and scaling opportunity is lost. #mssl141


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