First Forum on Service Management at the University of Basel

Why transformation? Digitization, increasing competitive intensity, price collapse, the commoditization of products and the demise of traditional business models - the challenges for companies that marketing pioneer Prof. Dr. Dr. h.c. mult. Manfred Bruhn are multifaceted. Those who are not capable of change will fall by the wayside.

Ubiquitous topics - but few goal-oriented discussions

The professor from the University of Basel, together with his colleague Karsten Hadwich, professor at the University of Hohenheim (Stuttgart), will give the opening lecture at the joint Forum Service Management at the University of Basel. Bruhn criticizes the fact that the discussion on topics such as disruption and digital transformation is ubiquitous, but not very purposeful: "Buzzwords such as disruption and digitalization do not provide concepts and solutions per se. That's why it's difficult for companies to deal with the multifaceted changes in a targeted manner. Many know that they have to change. The question is how!"

At the heart of successful transformation is service, explains Manfred Bruhn. It is about creating new forms of interaction, new business models and new service offerings. Together, the two professors show the development steps and phases of the transformation from product provider to service company.

This development brings with it numerous opportunities, but also many challenges. New pricing models are required, customer relationships are changing fundamentally, and change is also needed internally. Technology must not take center stage: "Digitization is an enabler for these developments. But if you focus solely on this, you run the risk of missing out on the customer. Digital is not automatically better," says Karsten Hadwich.

Examples from practice

Afterwards, representatives from the field will present their experiences to date. Pharmaceutical giant Novartis is experimenting with new, outcome-based pricing models. Process automation company Endress+Hauser is also evolving from product provider to solution provider through co-engineering and plant asset management. Fashion startup Outfittery shows how curation as a service enables a new type of sales and business model. Logistics company MAN Truck & Bus, one of the leading manufacturers of commercial vehicles and inventor of the diesel engine, hypothesizes that connected vehicles will only be relevant as carriers of versatile services in the future.

What does service transformation mean for management? In the panel discussion, the speakers will work with the audience to highlight the specific management tasks. It is not enough to simply offer services. Companies must generate customer knowledge and anchor customer orientation in their organization. Without involving the customer, the risk is great. In addition, the company's own brand positioning often has to be revised or the market has to be worked with new sub-brands. Sales and employees need to be trained and educated. Where is the journey leading? "I don't want to sell cars anymore. Our customers should use cars, paying for situational use according to what they want. That means, of course, they pay for transportation, gladly combined with other means of transportation. They also pay for additional services such as entertainment, massage seats, navigation, parking and so on, if required. The customer gets the services he needs and when he needs them," is how a representative from the automotive industry describes the prospects.

Source: www.bruhn-partner.com