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Countering Deservitization through Service Innovation

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Manufacturing firms are engaging in servitization in order to increase revenues and strengthen ties to customers. Still, many more firms are decreasing the service components of offerings in what we might call deservitization. The goals of deservitization are reducing costs and increasing value, including customization. Side effects include commoditization and destruction of competitive advantages. Deservitization is impacting many industries as diverse as healthcare, higher education, financial services, and others. The first part of this seminar will review the inevitability and peril of deservitization. Subsequently, we will discuss how the threat of deservitization can be countered through effective service design and innovation. This will include use of the service design technique known as strategic process positioning.

This talk is part of the IfM Seminars series.

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