02 September 2025

As products become increasingly similar and competition intensifies, companies need to think in new ways. At a lecture at Linköping University on 2 September, Professor Christian Kowalkowski explained how services and digital platforms are becoming more important for the business models of the future.

A man presenting to an audience, engaging the crowd with his speech and visual aids. Photographer: Teiksma Buseva

Christian Kowalkowski, based at the Department of Management and Engineering (IEI), has spent more than 20 years researching so-called servitization – the process by which manufacturing companies move from selling physical products to offering advanced services and complete solutions.

“To create value, it is no longer enough to just deliver a product. It is when the product is used, in the customer’s everyday life, that value is created,” he explained.

He highlighted examples such as Apple, where an increasing share of revenues comes from services rather than hardware, and Michelin, which has shifted from selling tyres to offering complete fleet management solutions. Digitalisation and sustainability requirements are also driving this development. Sensors, connected products and AI make it possible to analyse usage data and provide tailored services, while circular solutions can extend product lifetimes.

Christian Kowalkowski emphasised that servitization is not without its challenges. Companies may encounter obstacles related to organisation, responsibility, and data sharing. But he also stressed that the potential is significant for companies that succeed.

“The future winners will be those who can orchestrate systems of products, services and digital platforms. It’s about building long-term relationships with customers and creating new value together,” he said.

The lecture was part of the seminar series “Just around the corner” in Studenthuset at Campus Valla and was also livestreamed. It can still be watched afterwards on the university’s Vimeo channel.

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