English Lexicon

Servitization

/ˌsɜːr.vɪ.tɪˈzeɪ.ʃən/
nounCEFR B2 (Upper)Top #15000 frequency
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2 senses
As noun
  1. 1

    The process of creating value by adding services to products.

    "Many manufacturing companies are focusing on servitization to enhance customer satisfaction and loyalty."
  2. 2

    A business strategy that emphasizes the delivery of services in addition to traditional product sales.

    "The servitization of the automotive industry has led to new revenue streams through maintenance and software updates."

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Linguistic Origin & Historical Etymology

The term 'servitization' is derived from the combination of 'service' and the suffix '-ization', indicating the process of transforming a business model from a product-centric to a service-oriented approach. It emerged in the late 20th century as industries began to recognize the value of service offerings alongside traditional products.

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