Servitisation

A strategy of seeking to create value by adding services to products, or replacing a product with a service.

Selling maintenance contracts for capital goods is an example of a service being added to a product.

Contracting tyres by the kilometre to haulage companies instead of selling them outright is an example of a service replacing a product.

The potential benefits of servitisation include reducing waste, and more closely aligning the interests of users and providers/producers in the economy.

See also

• Access economy
• Capital
• Producer
• Productisation
• Service