The Customer Experience, Servitization Business Models and IOT – Part II


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The balance act between exponential and linear possibilities will be how to accommodate future IOT, Apps, Cloud and other customer experience enablers.

Will hyper-personalized services with #living services based in #data- driven analytics – to the level #IOT provides for us today – be enough in the future? What is your take on this?

Perhaps, in a few years we may no longer own cars, airplanes, games, and certain technologies.

Most everything will be used on a “as you go basis, similar to how our companies today pay for recurring charges and usage for machinery or cloud solutions. Here we could say, that in some aspects, the sharing or collaborative economy has already adapted to living services and servitization, generating an entire new category of customer experience, new possibilities and opportunities.

Today, most platforms may seem yours, due to the recurring monthly and annual charges your company pays to cloud companies such as Amazon, Microsoft, Google, Aliyun (Alibaba Cloud), SoftLayer (IBM), and other Cloud providers or enablers, as I prefer to call them.

#Servitization, involves a significant change in companies’ business models, #mindset & #culture. It may eventually change your company not only because of your willingness to change but “based on your need to #survive”! – @RicardoSGulko

At the end of the day, Servitization involves the change from enterprise focused marketing and sales (of physical or digital products) to a more services oriented action similar to our cloud services solution models.

Or like Jeremiah Owyang (Founder, Crowd Companies Council) calls it: “A more collaborative economy toward an autonomous era”, which in part will be enabled by IOT and Servitization!

Image Courtesy © J. Owyang/Crowd Companies

Striving to be one step ahead of innovation

Let’s look at the best mix between Leasing and Collaborative models: Previous models and current practical theories will collide or collaborate. With its adaptive economy mindset, Servitization will lead everyone, tailored to their individuality, towards a simple, seamless IOT, and an “autonomous era” transformation visible to all industry sectors.

Whether your company will be one of the early or late adopters, if your goal is to strive, your company will have to start preparing today, in order to be able to catch up with this digital transformation and customer experience’s last 3-5 years of progress!

As we enter into the” leasing” world of our old “sharing services economy model”, we are also noticing the changing of certain business models.

To illustrate this, let’s take Rolls-Royce Aerospace, which is now earning at least 50% of its revenue from services provided leasing turbines based on their relative new service model “#Power-by-hour” (airlines using jet engines on a “per mile flown” basis), changing the way products are sold and services portfolios supplied with each leased or purchased product. Another great example, among others, is ThyssenKrupp, who enabled their elevators with a “Servitization” model by adding powerful sensors to their current elevators as well as to their new line MULTI, which is an innovative piece of technology.

How did MULTI change the elevator experience?

MULTI combines creativity and design using game-changing predicative and preventive maintenance and security measures, with hundreds of thousands of sensors and systems in each elevator, monitoring everything from temperature to engine to shaft alignment, cab speed and door functioning. The data collected and the electronic devices used by its field services and maintenance teams – connected in real time to cloud with Microsoft Azure Intelligent Systems Service! An amazing paradigm shift, that changed the company’s and their customer’s reality.

Image is a courtesy of ThyssenKrupp, who enabled their elevators with a “Servitization” model

All of the sudden, experts were able to monitor what was going on at almost 100% of the time. Now, prior to an elevator stop or malfunction, they are able to check, review and repair the elevator and keep it working 24/7 instead of having to interrupt the service for a longer period of time. The reality today: For the first time since 1854 (when elevators surged), the concept of mixing living services and servitization with our great technology, was the first innovation that really “changed the elevator concept” at ThyssenKrupp and fellow competitors.

In addition, as Shep Hyken also perfectly pointed out: It also totally changed the reliability of our technology and services and provided the much needed “consistency in services to customer experience”, the key pillars for great experiences and services, including the heavy industry operation models for employees, partners and customers. IOT and its collective models, enable a new level of customer experience, from C Suite to field service maintenance teams.

Surpassing the Status Quo: The new practical CX includes innovative strategies and delivering opportunities!

Concluding, Servitization is a process of an enhanced service oriented business model, which requires an organizational transformation, foremost in product-oriented industries. It is ideal for manufacturers, who currently focus their business on products and production only. Rolls-Royce Aerospace I’ve already mentioned. Additional industry leaders may include Xerox with Document Management, and Alstom with #Train-life services. Or the German logistics company Hoyer, based in Yorkshire (GB), using the manufacturer MAN’s trucks on a “#pay-as-you-go basis”. Costs are based on “per mile driven”. This means, the customer only incurs expenses “when the product is generating revenue”. Great industry models! And imagine we’re just starting to utilize IOT and servitization as enablers for better customer experiences.

These are all examples of “advanced services” lead by predicative and preemptive data-driven services and analytics extracted by hyper-sensitive sensors. They can be easily incorporated into maintenance, repair and contracts, where revenue generation is directly linked to asset availability, reliability, trust, ability and efficiency.
Since 2015-4, when the industry was transformed by the rising IOT and cloud mix, we’ve grown closer to the fact, that interchanging Industry 4.0 “#Smart Factory”, Servitization and Customer Experience are a growing and evolving necessity today!

The bottom line in transcending Fiction in CX: 1) Quality, 2) Simplicity, 3) Open-mindedness to Change

Servitization and customer experience are the potential row models for technology, technical, heavy industry sectors and humans alike! The key to understand is that even though old factories today are totally digitalized, the next step is to make everyone more IOT pro-active. Only with this you will continue to be able to provide value and guarantee continued customer satisfaction and loyalty in a much simpler way.

When you choose to focus on #practicality and #quality, you will automatically allow for a simple, no friction customer experience, while at the same time, #mobilize your company with #sustainable, easy-interface, and #support!

I would appreciate to learn about your experience about related to the topics shared in this article and

  • How you experience IOT and its endless possibilities in your sector!
  • What are/were the major challenges in your sector related to IOT and Servitization?
  • How do Living Services, Servitization and IOT impact or enhance your customer experience today?

For more information about the new era of elevators, take a look at ThyssenKrupp MULTI is now reality – world’s first rope-free,up, down, right and left elevator … really an amazing technology.

Ricardo Saltz Gulko
Ricardo Saltz Gulko is the founder of Eglobalis and the European Customer Experience Organization. He is a global strategist specializing in B2B enterprises, with a focus on Customer Experience, Professional Services, Design and Innovation, as well as data-driven services. Ricardo empowers major global enterprises to generate new revenue and enhance market competitiveness through the delivery of exceptional global CX, and he employs design to drive adoption and growth. The end results of his work include high growth, increased retention, loyalty, innovation ignition, adoption and growth.


  1. Hi Shep, Thanks so much for coming, by here, yes servitization is vastly used as a concept in the UK and here in Europe, just the services model, change its name is several regions. But still vastly used. With IOT and preventative dat driven services, “things will be 24*7 working and preventing downtimes and increasing profits significantly. Thanks so much kr R

  2. Thank you for great post Ricardo! A deep dig into what every manufacturer shall have a focus on for 2018-2019, to drive customer engagement with servitization where the main driving force will be Customer Centricity and the outside- In perspective and thinking.

  3. Thanks Joakim for your kind words, I wrote this article based on what we did in ThyssenKrupp project with CGI and the redesign of the Artik Samsung product that connects IOT with all data-driven services and analytics results, and it simply generated new kind of CX and field services. IIOT is a subject, which 3, 5 years ago were impossible even to imagine. IOT with time will be part of seamless experiences and we will stop talking about it. In the multi-project, I learned the 100K possibilities of sensors and the benefits to create services, new models ( servitization). Thanks and kr R

  4. Hi Joakim, thanks so much for your nice words. We use servitatization business models to improve CX and services for industry 4.0 and ensure is profitable for customers. This was just the result of the work we did in one German company. Have a great week and thanks again R


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