Many organizations are asking themselves the question: Satisfied with one-off deals? Or looking to secure a recurring competitive advantage?
As more and more manufacturing companies, and firms in other industries, strive to build a recurring value chain for customers, it becomes imperative to make the shift from being a mere product supplier to becoming an integrated solution provider. The process of building revenue streams for manufacturers from services is servitization.
Given the increasingly complex business environment prevalent today, there is a gradual leaning across all industries to make this move to become a truly intelligent enterprise.
Servitization on the SAP S/4HANA Enterprise Architecture
Servitization involves a reset of operating models, solution architecture and enterprise architecture enabling the transformation from:
- Product offerings to solution offerings
- Functionality-based solutions to outcome-based solutions
- Single transaction business to long-term contracts
- One off supply dealing to becoming a network partner
The benefits are multiple, including stable revenue streams and a successfully navigating the cost to value dynamics for manufacturers, while offering low TCO, predictable costs (and hence investments) as well as dynamic monitoring dashboards for customers.
On the downside, most encompassing changes are fraught with worries – especially when they involve investments, uncertain outcomes, uprooting deep-set mindsets and obtaining the right technology.
Servitization with SAP S/4HANA – Move to a service-based business model
Capgemini facilitates the move to such a service-based approach in a controlled, modular, flexible, agile and risk-mitigated way.
With SAP S/4HANA, SAP Customer Experience, SAP Cloud Platform, Analytics and Asset Intelligence Network (AIN), customers can take advantage of all the components needed for a single, streamlined and world-class servitization approach.
Designed to put the User Experience at the center and allow for easy enhancement, customers can benefit from maturity assessments, rapid PoCs and industrialized delivery, along with developing a true partner on the servitization journey.
Learn how servitization has an impact on all business processes.
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