Topic 1 Servitisation

Servitisation or service innovation is one of the business models of the circular economy. The highest degree of servitisation is to keep ownership in the hands of the manufacturer and offer service instead of product (product as service), which increases the quality of input materials used in production, emphasizes longevity and repairability of products.

The term service innovation or servitisation means the creation of additional services that are packaged on existing products. This can bring companies additional income and very often new customers.

What does the Amazon’s Kindle really suggest to the consumers?  Amazon’s Kindle is an e-book reader that consumers can use to read, buy and store e-books. Using the Kindle Store, which is the Kindle’s e-service, consumers can browse and purchase a wide range of content, including e-books, e-magazines, e-news and games. Because of the wide range of options Kindle provides, consumers can select content that fits their individual taste or mood. Furthermore, enabling consumers to select their own content was associated with service availability; a service that can be accessed at any time and is always available to them.

You can learn more about Kindle´s advantages in this video:

Read this blog article about servitisation and think about the following questions:

1.What is meant by the Mobility-as-a-service Model? A. Model of sharing working tools B. Model of sharing vehicles C. Model of sharing designer fashion

2.Choose two examples of this model that has been mentioned in the article and not yet been mentioned in this module. A. Uber B. Philips C. Rolls Royce

3.Choose at least 3 advantages for adopting a Service-oriented business model. A. Better customisation B. Nicer design C. Recurring revenues D. Deeper customer relationships E. Higher quality of product/ service F. Healthier environment G. Seamless experiences H. Cost efficiency and predictability

4.Choose the correct explanation regarding two advantages: 1. Better quality of products: A. Having their audience’s best interest at heart by offering them long-lasting and performing products, manufacturers are now exposing customers to better quality of service. Moreover, customers can only be more pleased towards enterprises’ efforts to customize products through their data-driven analysis. B. Having producer´s best interest at heart by outsourcing manufacturing to the third world counties and outsourcing services to external companies and 2. Cost efficiency: A. Owning a car seems like a necessity these days and diesel motors are the best choice for driving around the city. B. Owning a car does not appeal to younger generations as much. It might still seem cheaper, more convenient and necessary (for some) to purchase a car and not to pay for maintenance and services.

5.Now think about a company you know, or you have worked for. Would this company be suitable for transferring towards a more service-oriented business model? Why (not)?