Servitization and Product as a Service (PaaS) are business models in which organizations provide Products plus Services or Products as a Service (PaaS).
This strategic shift can enhance margins by 20 - 25%. In my recent video, I delved into the nuances between Servitization and PaaS, highlighting their distinct differences.
While Servitization involves Capex + Opex, PaaS operates on a 100% Opex model. I also explored the common challenges faced during the transition to Servitization and the essential elements of this approach.
Software Vendors like PTC, Siemens, Syncron, IFS, and Tavant are leading the way in this transformation. Noteworthy is Salesforce's pivot towards Service Monetization with its Salesforce Manufacturing Cloud. Additionally, ServiceNow is actively developing capabilities to embrace Servitization for Monetization.
#Servitization #SLM #ServicelifecycleManagement #Paas #Productasaservice #StrategicTransformation #circulareconomy
#Sustainability #Servitization #BusinessInnovation
