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Servitization and Service Management


Purpose and description of the course

Across many industries, firms add more and more services to their core product portfolio. For instance, a physical product such as a machine may be combined with predictive maintenance services, or an IT company may offer access to its hardware and software as-a-service instead of traditional selling. This transformation from a product-centric approach to a solution-centric approach that combines products and services is called ‘servitization’.

Many industries are currently in the process of transforming from a focus on tangible products to a focus on services. For example, car manufacturers are intending to transform to mobility service providers, software companies are transitioning from selling licenses to software-as-a-service business models (e.g Salesforce and Microsoft 365), companies like Amazon Prime and Netflix has had wide success with providing content as a service and manufacturers of industrial machinery are implementing advanced maintenance services or even outcome-based contracts (e.g. Kaeser Compressors). The reason is that companies are increasingly realizing the tremendous potential that services offer. Generating new revenue streams, increasing profitability, generating data-driven customer insights, creating closer bonds with customers, or locking out competitors are only some of the promises of servitization – the strategy of combining products with services. However, actually realizing these promises has frequently proven to be a challenge for companies. Successfully designing, implementing, and executing servitization entails significant and far-reaching changes to a company’s business model, pricing structure, operational setup, sales approach, and company culture, to name a few. These changes often introduce a host of complexities that can be difficult to anticipate and that can create significant managerial challenges and dilemmas.

This course will sensitize participants to the complexities and interdependencies they should expect when embarking on a servitization journey by providing an in-depth understanding of what servitization entails and how it affects companies’ business models. Moreover, participants will learn different ways in which the ensuing complexities can be addressed. Based on the most recent servitization research, the course provides participants with practical tools to better understand, configure, execute, and manage different servitization strategies.

Key themes in the course

  • Opportunities for value creation through servitization.
  • Analysis of business models that combine services with physical products.
  • Various delivery models that support the provision of services for physical products.
  • Processes and business relationships that support servitization.
  • Change management and implementation of servitization.

Your learning outcome

In this course, you will learn to:

  • Define a specific servitization problem arising in a practical setting.
  • Apply the theories and models of the course to analyze this servitization problem.
  • Critically reflect on how to design and analyze processes and delivery models that can support servitization.

Who should attend this course

The course aims at all managers and specialists who are interested in learning more about servitization and the strategic shift from a goods-centric towards a more service- and customer-centric approach aiming both at business-to-business as well as business-to-consumer markets. The course is both geared towards those already working with industrial service provision as well as those who consider it a future option for their business.


kai storm


Kai Inga Liehr Storm

Institut for Produktion og Erhvervsøkonomi

tobias schafer


Tobias Schäfers

Department of Marketing