{"id":25673,"date":"2026-03-03T22:23:46","date_gmt":"2026-03-03T20:23:46","guid":{"rendered":"https:\/\/pointofnew.at\/glossary\/servitization-as-a-service-models\/"},"modified":"2026-03-06T15:43:43","modified_gmt":"2026-03-06T13:43:43","slug":"servitization-as-a-service-models","status":"publish","type":"page","link":"https:\/\/pointofnew.at\/en\/glossary\/servitization-as-a-service-models\/","title":{"rendered":"Servitization (As-a-Service Models)"},"content":{"rendered":"<p><!-- TL;DR Box --><\/p>\n<div style=\"background:#f0f1f3;padding:1.2em 1.5em;margin-bottom:2em;border-radius:8px;\">\n<strong>Key Takeaways:<\/strong> Servitization describes the strategic shift from product-centric to service-oriented business models. Instead of selling products, companies offer their benefits as a service\u2014creating recurring revenue, stronger customer loyalty, and new competitive advantages.\n<\/div>\n<nav style=\"background:#f9f9f9;padding:1.5rem 2rem;border-radius:8px;margin-bottom:2rem;\">\n<strong style=\"font-size:1.1rem;\">Table of Contents<\/strong><\/p>\n<ol style=\"margin:0.75rem 0 0;padding-left:1.25rem;\">\n<li><a href=\"#definition\" style=\"text-decoration:none;color:#1a5276;\">What is servitization?<\/a><\/li>\n<li><a href=\"#stufen\" style=\"text-decoration:none;color:#1a5276;\">The stages of servitization<\/a><\/li>\n<li><a href=\"#modelle\" style=\"text-decoration:none;color:#1a5276;\">Service business models in practice<\/a><\/li>\n<li><a href=\"#vorteile\" style=\"text-decoration:none;color:#1a5276;\">Benefits of servitization<\/a><\/li>\n<li><a href=\"#umsetzung\" style=\"text-decoration:none;color:#1a5276;\">Implementing servitization<\/a><\/li>\n<li><a href=\"#herausforderungen\" style=\"text-decoration:none;color:#1a5276;\">Challenges and risks<\/a><\/li>\n<li><a href=\"#faq\" style=\"text-decoration:none;color:#1a5276;\">Frequently asked questions about servitization<\/a><\/li>\n<\/ol>\n<\/nav>\n<h2 id=\"definition\">What is servitization?<\/h2>\n<p><strong>Servitization<\/strong> (also known as servitisation) is the strategic transformation of a company from pure product sales to integrated product-service systems. The product remains at the core of the offering, but is complemented by services or fully replaced by a service. <\/p>\n<p>The classic example: Rolls-Royce no longer sells engines, but rather &#8216;Power by the Hour&#8217; \u2013 airlines pay per flight hour instead of for the engine. This principle can be applied to many industries and is a central driver of <a href=\"\/glossar\/geschaeftsmodell-innovation\/\" style=\"color:#1a5276;text-decoration:none;\">business model innovation<\/a>. <\/p>\n<h2 id=\"stufen\">The stages of servitization<\/h2>\n<p>Servitization is not all-or-nothing\u2014it happens in stages:<\/p>\n<ol>\n<li><strong>Basic services:<\/strong> Product-related services such as maintenance, repair, and spare parts\u2014the entry point<\/li>\n<li><strong>Advanced services:<\/strong> Consulting, training, optimization, and monitoring\u2014knowledge transfer as added value<\/li>\n<li><strong>Outcome-based Services:<\/strong> The customer pays for results, not for the product \u2013 &#8216;Pay per Use&#8217;, performance guarantees<\/li>\n<li><strong>Product-as-a-Service (PaaS):<\/strong> A fully service-based approach\u2014the product remains the provider\u2019s property<\/li>\n<\/ol>\n<p>The higher the stage, the stronger the customer loyalty and the higher the margins\u2014but also the greater the complexity. The <a href=\"https:\/\/pointofnew.at\/en\/glossary\/value-chain\/\" style=\"color:#1a5276;text-decoration:none;\">value chain<\/a> changes fundamentally. <\/p>\n<h2 id=\"modelle\">Service business models in practice<\/h2>\n<ul>\n<li><strong>Equipment-as-a-Service:<\/strong> Machines and equipment are rented out instead of sold\u2014the manufacturer takes over maintenance and operation<\/li>\n<li><strong>Managed services:<\/strong> IT infrastructure, building technology, or fleet management as a full-service model<\/li>\n<li><strong>Performance contracting:<\/strong> Payment is based on measurable outcomes\u2014e.g., energy savings, productivity gains<\/li>\n<li><strong>Subscription models:<\/strong> Regular usage fees instead of a one-time purchase\u2014from software to coffee machines<\/li>\n<li><strong>Data-driven services:<\/strong> IoT sensors provide usage data for predictive maintenance and optimization\u2014the basis for <a href=\"https:\/\/pointofnew.at\/en\/glossary\/data-driven-business-models\/\" style=\"color:#1a5276;text-decoration:none;\">data-driven business models<\/a><\/li>\n<\/ul>\n<p>Servitization is often linked with <a href=\"https:\/\/pointofnew.at\/en\/glossary\/industry-4-0\/\" style=\"color:#1a5276;text-decoration:none;\">Industry 4.0<\/a>: connected products generate data that enables new service models.<\/p>\n<h2 id=\"vorteile\">Benefits of servitization<\/h2>\n<ul>\n<li><strong>Recurring revenue:<\/strong> Predictable, stable revenue streams instead of project-based one-off revenue<\/li>\n<li><strong>Higher margins:<\/strong> Services typically achieve 25\u201340% higher margins than product sales<\/li>\n<li><strong>Stronger customer loyalty:<\/strong> Long-term contracts and close integration reduce churn<\/li>\n<li><strong>Differentiation:<\/strong> Services are harder to copy than products\u2014a sustainable <a href=\"https:\/\/pointofnew.at\/en\/glossary\/usp-unique-selling-proposition\/\" style=\"color:#1a5276;text-decoration:none;\">USP<\/a><\/li>\n<li><strong>Customer proximity:<\/strong> Ongoing contact provides insights for <a href=\"https:\/\/pointofnew.at\/en\/glossary\/innovation-process\/\" style=\"color:#1a5276;text-decoration:none;\">innovation processes<\/a><\/li>\n<li><strong>Sustainability:<\/strong> Durable, maintained products in a service model support the <a href=\"https:\/\/pointofnew.at\/en\/glossary\/circular-economy\/\" style=\"color:#1a5276;text-decoration:none;\">circular economy<\/a><\/li>\n<\/ul>\n<h2 id=\"umsetzung\">Implementing servitization<\/h2>\n<ol>\n<li><strong>Understand customer needs:<\/strong> What are the <a href=\"https:\/\/pointofnew.at\/en\/glossary\/jobs-to-be-done-jtbd\/\" style=\"color:#1a5276;text-decoration:none;\">jobs to be done<\/a>? Customers do not buy a drill\u2014they need a hole in the wall <\/li>\n<li><strong>Identify service potential:<\/strong> Which parts of the customer journey can be delivered as a service?<\/li>\n<li><strong>Design the business model:<\/strong> Use the <a href=\"https:\/\/pointofnew.at\/en\/glossary\/business-model-canvas\/\" style=\"color:#1a5276;text-decoration:none;\">Business Model Canvas<\/a> and <a href=\"\/glossar\/value-proposition\/\" style=\"color:#1a5276;text-decoration:none;\">Value Proposition Design<\/a> to structure the service model<\/li>\n<li><strong>Define <a href=\"https:\/\/pointofnew.at\/en\/glossary\/pricing-strategy\/\" style=\"color:#1a5276;text-decoration:none;\">pricing<\/a>:<\/strong> Usage-based, outcome-based, or subscription? The pricing model must match customer value <\/li>\n<li><strong>Pilot and learn:<\/strong> <a href=\"https:\/\/pointofnew.at\/en\/glossary\/lean-startup\/\" style=\"color:#1a5276;text-decoration:none;\">Lean Startup<\/a> approach\u2014start with a pilot customer segment and iterate<\/li>\n<li><strong>Adapt the organization:<\/strong> Build new capabilities\u2014service delivery, customer management, <a href=\"https:\/\/pointofnew.at\/en\/glossary\/digital-maturity\/\" style=\"color:#1a5276;text-decoration:none;\">digitalization<\/a><\/li>\n<\/ol>\n<h2 id=\"herausforderungen\">Challenges and risks<\/h2>\n<ul>\n<li><strong>Cultural change:<\/strong> From product thinking to service thinking\u2014requires profound <a href=\"https:\/\/pointofnew.at\/en\/glossary\/change-management\/\" style=\"color:#1a5276;text-decoration:none;\">change management<\/a><\/li>\n<li><strong>Cannibalization:<\/strong> Service models can reduce product revenue in the short term\u2014the ROI comes in the long term<\/li>\n<li><strong>Complexity:<\/strong> Service delivery is operationally more demanding than product sales<\/li>\n<li><strong>Risk assumption:<\/strong> With outcome-based models, the provider takes on more risk<\/li>\n<li><strong>IT infrastructure:<\/strong> Data-based services require IoT, CRM, and analytics platforms<\/li>\n<\/ul>\n<p>Especially for <a href=\"https:\/\/pointofnew.at\/en\/glossary\/mittelstand-innovation\/\" style=\"color:#1a5276;text-decoration:none;\">SMEs<\/a>, a gradual transition is recommended: start with basic services and progressively grow into higher stages.<\/p>\n<p><!-- CTA Box --><\/p>\n<div style=\"background:linear-gradient(135deg,#1e3a5f,#2563eb);color:#fff;padding:2rem;border-radius:12px;margin:2rem 0;text-align:center;\">\n<h3 style=\"color:#fff;margin-top:0;\">Would you like to expand your product business with services?<\/h3>\n<p style=\"font-size:1.1rem;\">We support your servitization strategy\u2014from potential analysis to the service business model.<\/p>\n<p><a href=\"https:\/\/pointofnew.at\/en\/business-model-innovation-services\/\" style=\"display:inline-block;background:#fff;color:#1e3a5f;padding:0.75rem 2rem;border-radius:8px;text-decoration:none;font-weight:600;margin-top:0.5rem;\">\u2192 Schedule a consultation now<\/a>\n<\/div>\n<p><!-- FAQ --><\/p>\n<div class=\"faq-section\" itemscope=\"\" itemtype=\"https:\/\/schema.org\/FAQPage\">\n<div>\n<h2 id=\"faq\">Frequently Asked Questions (FAQ)<\/h2>\n<details itemscope=\"\" itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" style=\"background:#eaecee;border-radius:8px;margin-bottom:0.75rem;overflow:hidden;\">\n<summary itemprop=\"name\" style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;\">Which industries is servitization suitable for?<\/summary>\n<div itemscope=\"\" itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 1.2rem 1rem;color:#2c3e50;\">\n<div itemprop=\"text\">\n<p>In principle, for all product-based industries: mechanical engineering, automotive, medical technology, IT\/software, building services engineering, the printing industry, and many more. Industries with high maintenance needs, long product life cycles, and measurable customer value have particularly strong potential. <\/p>\n<\/div>\n<\/div>\n<\/details>\n<\/div>\n<div>\n<details itemscope=\"\" itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" style=\"background:#eaecee;border-radius:8px;margin-bottom:0.75rem;overflow:hidden;\">\n<summary itemprop=\"name\" style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;\">Do I have to stop selling products?<\/summary>\n<div itemscope=\"\" itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 1.2rem 1rem;color:#2c3e50;\">\n<div itemprop=\"text\">\n<p>No\u2014servitization does not mean giving up product sales. Many companies offer both models in parallel: purchase and service. Experience shows that service models often grow step by step and, over time, complement product sales or replace them for certain customer segments.  <\/p>\n<\/div>\n<\/div>\n<\/details>\n<\/div>\n<div>\n<details itemscope=\"\" itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" style=\"background:#eaecee;border-radius:8px;margin-bottom:0.75rem;overflow:hidden;\">\n<summary itemprop=\"name\" style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;\">How long does the transition to servitization take?<\/summary>\n<div itemscope=\"\" itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 1.2rem 1rem;color:#2c3e50;\">\n<div itemprop=\"text\">\n<p>Building basic services can be achieved in 6\u201312 months. Outcome-based or PaaS models typically require 2\u20134 years for piloting, scaling, and organizational adaptation. A gradual approach reduces risks and enables continuous learning.  <\/p>\n<\/div>\n<\/div>\n<\/details>\n<\/div>\n<div>\n<details itemscope=\"\" itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" style=\"background:#eaecee;border-radius:8px;margin-bottom:0.75rem;overflow:hidden;\">\n<summary itemprop=\"name\" style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;\">What role does digitalization play in servitization?<\/summary>\n<div itemscope=\"\" itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 1.2rem 1rem;color:#2c3e50;\">\n<div itemprop=\"text\">\n<p>Digitalization is an enabler: IoT sensors provide usage data, cloud platforms enable remote monitoring, and AI optimizes predictive maintenance. However, servitization starts with strategy, not technology. Service models can also be built without IoT.  <\/p>\n<\/div>\n<\/div>\n<\/details>\n<details style=\"background:#eaecee;border-radius:8px;padding:0;margin-bottom:0.75rem;\">\n<summary style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;list-style:none;\">What are successful examples of servitization in traditional industries?<\/summary>\n<div style=\"padding:0 1.2rem 1rem 1.2rem;\">Rolls-Royce pioneered &#39;Power-by-the-Hour&#39; where airlines pay per flight hour instead of buying engines. Hilti shifted from selling power tools to providing fleet management and per-use subscriptions. Michelin offers tire-as-a-service to trucking fleets, charging per kilometer. These models align supplier and customer interests \u2013 the provider benefits from building durable, efficient products rather than planned obsolescence. For SMEs, examples include equipment leasing, managed services, and outcome-based contracts where payment depends on results achieved.<\/div>\n<\/details>\n<\/div>\n<\/div>\n<p><!-- Verwandte Begriffe --><\/p>\n<div style=\"margin-top:2.5em;padding-top:1.5em;border-top:1px solid #e2e8f0;\">\n<strong>Related terms:<\/strong><\/p>\n<div style=\"display:flex;flex-wrap:wrap;gap:0.5rem;margin-top:0.5rem;\">\n<a href=\"\/glossar\/geschaeftsmodell-innovation\/\" style=\"color:#1a5276;text-decoration:none;\">Business Model Innovation<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/circular-economy\/\" style=\"color:#1a5276;text-decoration:none;\">Circular Economy<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/industry-4-0\/\" style=\"color:#1a5276;text-decoration:none;\">Industry 4.0<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/pricing-strategy\/\" style=\"color:#1a5276;text-decoration:none;\">Pricing Strategy<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/value-chain\/\" style=\"color:#1a5276;text-decoration:none;\">Value chain<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/data-driven-business-models\/\" style=\"color:#1a5276;text-decoration:none;\">Data-Driven Business Models<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/change-management\/\" style=\"color:#1a5276;text-decoration:none;\">Change management<\/a><br \/>\n<a href=\"\/glossar\/value-proposition\/\" style=\"color:#1a5276;text-decoration:none;\">Value Proposition Design<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/platform-economy\/\" style=\"color:#1a5276;text-decoration:none;\">Platform Economy<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/mittelstand-innovation\/\" style=\"color:#1a5276;text-decoration:none;\">Mittelstand Innovation<\/a>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways: Servitization describes the strategic shift from product-centric to service-oriented business models. Instead of selling products, companies offer their benefits as a service\u2014creating recurring revenue, stronger customer loyalty, and&hellip;<\/p>\n","protected":false},"author":1,"featured_media":24529,"parent":25140,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-25673","page","type-page","status-publish","has-post-thumbnail","hentry"],"featured_image_src":"https:\/\/pointofnew.at\/wp-content\/uploads\/2025\/07\/Point-of-New-Business-Model-Innovation-Benedikt-Hasibeder-scaled.png","_links":{"self":[{"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages\/25673","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/comments?post=25673"}],"version-history":[{"count":11,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages\/25673\/revisions"}],"predecessor-version":[{"id":28318,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages\/25673\/revisions\/28318"}],"up":[{"embeddable":true,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages\/25140"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/media\/24529"}],"wp:attachment":[{"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/media?parent=25673"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}