The Aston Centre for Servitization Research and Practice has been nominated by the THE Leadership and Management Awards 2015 in the Knowledge Exchange Category. The shortlisting acknowledges the centre’s work to raise awareness of the potential of servitization – adding services and solutions to product offerings – for manufacturing and wider society. The centre also helps to train and advise companies looking to begin providing services.
From Rolls-Royce and Weir to Rotork and IMI, companies across the UK are investing heavily in the after sales service market as they seek new sources of revenue streams.
For many businesses, this strategy has become essential. At Rolls-Royce, for instance, around 48% of the group’s £14.6bn revenue for 2014 came from after-sales market services, including maintenance, repair and overhaul.
At Aston, Professor Tim Baines, Director of the Servitization Centre, is working with small-to-medium sized (SME) British manufacturers to help them adopt a manu-services model. Over the past three years, Aston has worked with 55 manufacturing SMEs on a two-day programme, which it estimates has added £5m of gross value to the economy.
Out of the 55 companies who have worked with Professor Baines, 23 have significantly changed their business. On average, SMEs on the Centre for Servitization’s programme have increased their revenues from £165,000 to £290,000.
The Aston Centre for Servitization Research and Practice is looking to launch a more extensive programme in January, which will see it work with about 80 companies over a two-year period. It is the world’s first and only centre dedicated entirely to understanding and promoting servitization within the global market.
The winners of the THE Leadership and Management Awards will be announced during a ceremony on 18 June at the Grosevnor House Hotel, London.