The influence of organizational factors on implementing servitization strategy

Today, many leading companies in developed economy offerings an integration of services with their core products, which comprise a significant shift in the underlying business model. This movement has been coined the `servitization of business´. In this exploratory paper, we discuss the influence of organizational factors by five different indicators, namely, vision/strategy, leadership, organization, human resources, and sales & marketing to assist the implementation of firm servitization strategy. Data was collected from a giant electronics company of Hitachi Limited, Japan. Organization answer to a survey included multiple and open questions about the perception, process, barriers, and execution of servitization strategy. In general results show that the factors like, customer-centric strategy, cross-functional collaboration, business integration, communication skills, and solution oriented process have more influence on building a high performance service model and its capabilities; new relationship with customers, nurture a service culture and supporting the processes towards servitization of business.