Servitization: Buzzword or Game-Changer?
Published: March 13, 2026
Last update: May 18, 2026
Das Wichtigste in Kürze
If you look at current analyses on the topics of digitalization and the platform economy, things do not look rosy for Europe and Germany at the moment. The regular survey of the 100 most valuable digital platforms by network economist Dr. Holger Schmidt shows that Europe's share of the platform economy is modest at 5%. Nevertheless, Germany has moved up seven places in the Digital Quality of Life Index 2021 to 9th place. According to a recent study by the American data specialist Snowflake, two thirds of German companies still do not feel ready for the data economy.
Table of Contents
- Falling behind for good?
1. Finally leveraging and monetizing data and knowledge - The 5-step plan for data-driven business models
Step 1: Stocktaking
Step 2: Identifying the potentials
Step 3: Designing a dedicated organizational and structural framework
Step 4: Think Big!
Step 5: Gradual expansion and transformation toward a service business model - How modern SaaS solutions are already realizing the service of tomorrow today
- Conclusion
Falling behind for good?
German industry has everything it needs to digitize faster and use data profitably: Its globally recognized engineering expertise, its position as a leading export nation and its strong reputation in the field of AI research. Smart products and customer-centric services are the drivers for exploiting the available opportunities.
According to asurveyconductedby McKinseyin 2020, 88% of SMEs want to introduce new services and business models in order to improve interaction with their customers and achieve greater customer centricity. In this context, the term "servitization" is cropping up more and more frequently.
Servitization, also known as service transformation, refers to a business model innovation: away from pure product sales and towards offering product-service systems. The "power-by-the-hour" model for Rolls-Royce turbines is often cited as a popular example. Here, the turbines were rented out and the fault-free operating hours billed. However, this neglects the current relationship between servitization and the digital age.
The term "digital servitization" should therefore be used more precisely. This describes more specifically that smart products are enriched by additional digital services and offered together with a corresponding IT ecosystem. The decisive factor for the success of such strategies always lies in the collection, processing andprovision of data. This ensures monetary growth, competitive advantages and, in particular, direct access to end customers.
Finally leveraging and monetizing data and knowledge
Data and knowledge are the decisive factors for scalable and sustainable digital business models, especially in the highly knowledge-intensive mechanical and plant engineering sector. When used optimally, customer-centric services, digital products and new data-driven business models can be created. On this basis, companies are transforming themselves into customer-centric platforms with additional digital offerings and building up a comprehensive digital service business, which promises higher margins, returns and growth opportunities than the actual core products. As tempting as the opportunities of digital servitization may seem, the domestic industry often struggles to implement it and is increasingly losing market share to so-called tech giants. The following are therefore the five most important steps that describe the path to digital business models.
The 5-step plan for data-driven business models
Step 1: Stocktaking
The first step involves taking stock and reviewing relevance in relation to the corporate strategy. On the one hand, one should question the extent to which digital services can transform the existing service landscape, particularly with regard to efficiency and scalability. In addition, it should be discussed whether existing products should be supplemented by digital services or whether entirely new, digital product-service systems should be offered. Furthermore, one should keep an eye on market trends and any potential threats to end-customer contact coming from outside. If opportunities for business success are identified, a closer look should be taken at the potential involved.
Step 2: Identifying the Potentials
Digital servitization exists in a constant tension between a "technology push" — what becomes possible due to new technologies — and a "market pull" — what customer needs exist in the market. In this step, both topics should therefore be systematically analyzed. To prevent the development of elaborate products and services that miss the mark on market requirements, customer needs should be the starting point. The aftersales/aftermarket area offers a good entry point, as close customer contact is already maintained here and revenues can be increased quickly. Based on the defined strategic goals, a "product-service portfolio roadmap" is then created. Potential partners in the customer environment, suppliers, and competitors should also be identified in this process.
Step 3: Designing a dedicated organizational and structural framework
If the service business is an important pillar of the corporate strategy, this should also be reflected in the organization through short reporting lines and anchoring at C-level. To this end, dedicated resources for the sales of (digital) services and new innovative products should begin to be established.
Step 4: Think Big!
Think big, but break the strategy down into verifiable and achievable minimum viable products in order to determine product-market fit. This allows initial products and services to be implemented as proof of value. A stage-gate innovation process should also be established, in which teams must demonstrate progress to validate the value of the products. It is very important to continuously review the service innovation portfolio and discontinue non-functioning initiatives before "zombie projects" emerge that consume time and budgets. Collecting the right data and converting existing knowledge into customer-centric products and services is essential.
Step 5: Gradual expansion and transformation toward a service business model
How can a shift in mindset be initiated within the organization? First, the organization should be transformed, and sales staff should then be progressively upskilled through suitable training concepts. In this way, the sales DNA can be changed over the long term.
Projects of this nature can often not be managed alone or alongside day-to-day business. However, partners and holistic SaaS solutions are already available today that are dedicated to digitalization in service and are suited as a foundation for data-driven business models, without undermining customer access. To ensure seamless data utilization and provision, it is particularly advisable — for reasons of data protection and data security — to rely on "Made in Germany" solutions.
How modern SaaS solutions are realizing the service of tomorrow today
Modular, AI-based SaaS products are already providing service technicians, support agents, sales staff and technical editors with the right product and service information in the right place at the right time, making the service process more efficient from signal to action.
In knowledge portals, users can use the AI-based search to securely access all relevant information in a matter of seconds - regardless of where or in what format it is stored. They can also solve complex problems more quickly with the help of guided error diagnostics.
SaaS products also support active, structured knowledge transfer and situational learning with the help of team apps. Service knowledge is tapped where it arises: during service technician assignments in chat groups, during remote support calls, in countless service tickets or in the daily notes and feedback from service employees. This prevents the loss of knowledge in technical service resulting from employee turnover and demographic change.
Conclusion:
Digital servitization offers German industry the opportunity to bridge the gap between engineering excellence and modern service business through data-driven business models and AI-based SaaS solutions. When data and knowledge are leveraged strategically, this not only secures higher margins, but also sustainably strengthens competitiveness against global tech giants.
Empolis
