한국생산성학회

Due to the advent of service economy, servitization becomes popular as a new business model to survive in severe competitions in the market. Although there have been a number of previous studies with the increasing importance of servitization, the development of implementation methods or roadmaps has been rarely fulfilled in literature. In addition, existing methods and case studies are mostly based on major companies and successful cases. Therefore, small and medium sized manufacturing businesses who are not quite ready to start servitization have no guideline to follow. Also, there are rare case studies about failures of servitization which make the servitization more difficult because of the lack of information for what to care and what to avoid. In this paper, we propose a coherent servitization implementation methodology by classifying the degrees of servitization in the detail processes of the company, focusing on the core processes of the small and medium sized manufacturing company, and determining the scope and direction of servitization through a comparative analysis with competitors. The methodology categorizes firm’s core processes as supplier relationship process, manufacturing process and customer relationship process with a flow-chart. Categorized processes are analyzed by process characteristics table to determine the moving direction of the servitization toward the manufacturing side or the service side. Case studies of successful and unsuccessful servitizations are introduced to help understanding of how to apply the theoretic methodology into the practice. The proposed methodology is a comprehensive approach that can be applied for various areas regardless of the characteristics of an industry or a company, and provides a theoretical background on how to achieve successful servitization implementation while avoiding service paradox.