“The biggest challenge is that services are still not taken seriously enough. Small and medium-sized enterprises are increasingly recognising the potential, but they still lack the skills to carry out the transformation.”

So says PhD student Amna Saeed Akkas, whose research project examines the difficult early stages of digital servitization.

Her mission is to help companies look beyond the physical product and develop services that create value for customers. Because in a world that is becoming increasingly digital and connected, simply selling machines is no longer enough.

According to Amna, digital servitization is important because it is where many companies can find future growth. She points out that companies that have succeeded with the transformation can now generate large parts of their revenue from services.

“We live in an interdependent world where more and more companies are becoming part of digital ecosystems. It is about differentiating yourself and finding new ways to become indispensable to the customer,” she explains.

Companies need to believe in the potential

According to Amna, one of the biggest barriers is companies’ own self-image. Many are proud manufacturers, and the idea that the physical product is what really matters is deeply embedded in their culture.

This can lead to an underestimation of how demanding the transformation is.

“Many people think: ‘Service is just something we do on the side, and we do not expect much from it. It only makes up 1–2 percent of our revenue.’ That attitude stands in the way of the necessary transformation. If you want to make real progress, you need to dare to believe that services can become one of the pillars of the business.”

Find your champions

When Amna analyses a company, she does not only look at its machinery, but at the organisation as a whole. She looks for what she calls champions: internal driving forces who dare to challenge the status quo.

“In every company, there are frontrunners with big ideas. They are people with a particular curiosity who dare to look beyond the traditional product mindset,” she explains.

At the same time, she stresses that success requires the right internal communication.

“It is not enough to convince the customer. You need to bring the whole organisation with you – from sales to R&D. Everyone needs to understand what the service is and why it is worth spending time and effort on it in a busy working day. Otherwise, it just ends up as a paper exercise.” 

Not a sprint

Based on her experience, Amna sees digital servitization as a journey – and much more as a marathon than a sprint.

“You need to respect the time horizon. I have seen companies plan for six months only to discover that it can take six years before they truly reach the finish line. But even though it is difficult, it is necessary. It is about breaking everyday patterns and daring to ask: ‘Can we become something more than we are today?’”