IDC Sees Opportunity in Product-Service Systems


Manufacturers find themselves in an increasingly complex environment. The global nature of today’s business is marked by regional demand variability, supply uncertainties, and the incessant mandate to increase revenue while controlling costs. Product sales alone are not delivering the results that shareholders and leaders want, driving many manufacturers to turn to after-sales services for revenue and profit growth. Services are an underutilized opportunity area for many manufacturers, but that is starting to change.

The rise of connected products offers a prime opportunity for manufacturers to shift their traditional product-centric sales model to a model that delivers “outcomes” through a combination of products and services, also known as product-service systems.

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