Two and a half years ago, a number of leading companies decided to participate in a new project, ‘Developing Industrial Offerings – DInO’. They all had the objective to better understand drivers, methods, and implications for the successful management of the transition from being a mainly product oriented company, towards becoming increasingly service oriented.
Not until long ago the focus for almost all participating companies was on producing and delivering products rather then implementing services and industrial offerings. Today, with a sharp and unexpected economic downturn, the situation is very different, and services and industrial offerings are by most companies seen as potential orders winners and carriers of revenue and profitability in the coming years. New business objectives are often set to include 30–50 percent of revenues generated by these new services and offerings.
A transition, though, from a product-orientated to a service-orientated firm is generally not an easy task or a quick fix. It takes top management commitment and requires dedicated efforts since there are several hurdles to overcome. All these embedded hurdles and new requirements are highlighted in this report based on the DInO-project. It is written for management, business developers and other staff responsible for services and industrial offerings.
Through this report we share learning and experiences from the project, with references to the participating companies. We hope that it will bring new insights to use in your own transition. The timing for most companies could not be more right.
Participating companies were AGA Gas, ESAB, Husqvarna, ITT Water & Wastewater, Metso, SAAB, TeliaSonera, Tranås United and Volvo. Managing the project was Marketing Technology Center, MTC, together with the Institute of Technology at Linköping University, with co-financing from VINNOVA.
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