Adopting As-a-Service Business Models in Manufacturing: Insights from an Empirical Case Study

Servitization, defined as the transition from selling products to offering an integrated product-service combination to generate additional value, has gained significant importance in recent years, especially within the manufacturing sector. Recent studies indicate that practical implementation remains underdeveloped, especially in advanced models that emphasize functionality over ownership, like the as‐a‐service model. This is mainly due to the lack of methods and tools for companies that can support managers to better understand the transformations needed to move to this business model. This paper aims to fill this gap by illustrating a framework that helps managers to take into consideration key aspects that need to be considered for implementing as-a-service business models in practice. This framework has been applied in a real-world setting at an SME that manufactures packaging machinery. The application of the proposed framework has helped company identifying practical actions for guiding the desired transition from traditional sales to a pay-per-pack model. Moreover, the application provides value for both researchers and practitioners in characterizing as-a-service models within the manufacturing context. It also equips manufacturers with a valuable tool to assess their current state (as-is), identify necessary changes, and systematically adopt as-a-service business model while considering pertinent aspects.