Deciphering the DNA of how things are done
Service has not only proved to be a business with better margins, it has also gradually become the chief source of competitive advantage. How can product-centric companies make the shift?
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WE DON'T need to buy a car. We can pay for a ride. We don't own bicycles. We pick it up off the streets, leave it back when our ride is done. Companies don't own photocopiers. They just pay lease charges for its use. They don't own software programs. They just pay for the use. It's not even on their premises anymore.
There is strident "servisation" of product markets. However, much before these trends, product companies diversified into services. What lessons can we learn from them?
Service has not only proved to be a business with better margins, it has also gradually become the chief source of competitive advantage where products tend towards commoditisation. Services have also expanded in scope, thanks to customers' spoken and unspoken demands and digital technologies.
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