Servitization: is a paradigm shift in the business model and service enterprise required?

Servitization is the move by firms to gain value from service associated with their products, which requires a strategic rather than incremental change in the provider firm. There are multiple challenges associated with the transformation from product to service provision, including strategy, organization and enterprise management, contracting, risk, culture, and operations. High-tech capital equipment firms attracted by the potential revenue benefits are choosing to move from supplying products only to supplying products and services. A paradigm shift may need to occur, changing both managers' perspectives and the business models employed to provide service.