Servitization and Advanced Services: Book Aims & Content

Increased market tensions, new low-cost suppliers, and growing price pressure mean that firms cannot rely on squeezing out more small increments from existing resources or 'cutting a route to glory'. To achieve significant performance improvement management, something fundamental must change to create space for performance leaps. Explore the Rubicon Performance Leap model and the role of advanced services contracts in building a company cult that accelerates and sustains business transformation, ensuring there is no lapse in addressing the Net Zero challenge and clinging to the past.

Unfamiliar with what is driving the Net Zero challenge beyond government actions? This summary explains the various forces and initiatives that are shaping the Net Zero agenda, impacting every business and necessitating business transformation. Learn about the Science Based Targets initiative, Greenhouse Gas Emissions Scopes, reporting standards, and stakeholder activism. Explore how advanced services contracts and new products could reshape and create beneficial service-based offers to customers who are facing their own Net Zero pressures, ultimately contributing to performance improvement management.

The shift towards Servitization, Advanced Services Contracts, and Guaranteed Outcome Based Contracts means that customers will have evolving expectations regarding who assumes debt and other risks associated with future investments in capital goods. As businesses undergo transformation to meet the Net Zero challenge, the question arises: will customers continue to shoulder the debt and performance risks of equipment themselves, or will manufacturers need to develop innovative risk management and financial solutions in collaboration with specialist funders and FinTech firms? This chapter explores various options for performance improvement management and creating valuable sales-aid funding solutions.

Navigating business transformation can be very tough and is often riddled with risks, such as internal reactions to change, dealing with legacy systems, and managing capabilities and work-arounds. Moulding exceptional teams and effectively managing stakeholders and communications are vital to success, especially when implementing advanced services contracts. It's also important to consider 'design for outcomes', which involves recognizing and addressing multiple profit centres while leveraging telematics data to facilitate performance improvement management in the face of the Net Zero challenge.

Explore tried and tested tools to enhance 'lead indicators' and integrate 'Behavioural Economics' to thrive in today's competitive markets. By leveraging advanced services contracts and innovative funding options, products become significantly more cost-justifiable. Embracing compelling 'Consultative Sales/Finance Language', 'Killer Proposition Packs', and other strategies can empower sales professionals with methods designed for 21st Century business transformation and performance improvement management, all while addressing the Net Zero challenge.

Discover the award-winning Rubicon Performance Improvement Circle Scorecard (PICS) and explore how it can be utilized to drive business transformation and promote the desired performance and cultural changes essential for configuring and selling through advanced services contracts. Shift mindsets from 'Needing to do what I like' to 'Liking what I need to do,' especially in the context of addressing the Net Zero challenge and enhancing performance improvement management.

Throughout the book, you will find useful links to resources and further support to initiate and sustain your business transformation towards adopting Servitization and advanced services contracts. This guidance will also help you tackle the Net Zero challenge and enhance your performance improvement management.