From Products to Services

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Over the past thirty years, many product companies in Western economies have explored establishing service businesses, with varying degrees of success. Some have abandoned the idea, while others have ventured into competitive services without a clear understanding of the implications. Notable companies such as Unisys, Ericsson, Michelin, Nokia, and HP have engaged in this transition. For IBM, it was a significant strategic decision under Lou Gerstener; for GE, it was part of Jack Welch's major strategies. Despite the prevalence of this shift, little has been documented, leading to misconceptions. Some assert that the evolution from products to services is inevitable, while others believe manufacturing is solely moving to countries like China and India. In reality, transitioning to a service model requires substantial changes across various functions, including operations, management, finance, and marketing, posing significant risks. This book, authored by an experienced businessman, delves into the motivations behind this shift, offering insights from case studies of companies like IBM, Unilever, and Michelin. It addresses strategic focus, change management, and service marketing, making it essential reading for those considering or already pursuing service growth and innovation.