Servitization is a growing trend in the world, but its adoption rate differs by industry. Although servitization is already widely adopted within a range of sectors, the healthcare industry lags behind. On behalf of global asset finance company DLL and management consultancy firm Berenschot, Master Students from the Rotterdam School of Management (Erasmus University Rotterdam) explored the obstacles, benefits and success factors for healthcare OEMs (Original Equipment Manufacturers) and hospitals associated with adopting servitization. Their findings are bundled in a report that is launched today.
Servitization entails the shift from producing and selling products to providing and selling services, or a combination of products, services, and sometimes consumables. The concept is the answer to changing market needs as they shift from equipment ownership to instant access to equipment when needed.
Fabian Nullmeier, consultant Operational Excellence at Berenschot and PhD Servitization adds: “The global appetite for services has grown by 30 percent over the past twenty years relative to the Gross Domestic Product. Meanwhile, the nature of services is changing. In general, the number of people buying conventional products and services is decreasing; instead, more people are seeking to buy the outcomes that these products offer. So, rather than ‘buying a car,’ commuters want ‘mobility.’ And rather than ‘buying insurance,’ homeowners want ‘reassurance.’ Increasingly, people want access to equipment without carrying the responsibilities of ownership.”
Servitization has already been successfully implemented in multiple industries including automotive, materials handling and entertainment, where it accomplished total cost of ownership reductions and increased efficiency. While various OEMs have introduced servitization offerings, several characteristics specific to the healthcare sector have resulted in limited adoption of servitization so far. This study sought to identify key benefits,obstacles and success factors for OEMs and hospitals associated with adopting servitization. By addressing these, this study aims to accelerate the adoption of servitization in the healthcare sector.