122 Iain McKechnie: steps to a services-led strategy

Circular Economy Podcast

Iain McKechnie of the Advanced Services Group helps clients develop services-led strategies, improving circularity and outcomes for the businesses and their customers. The market for services, including rental, subscriptions and ‘X-as-a-service’ is growing rapidly, both for business to business and business to consumer markets, and services can be a gamechanger for businesses looking to shrink their footprint and adopt circular strategies. It’s all part of a shift from a culture of ‘ownership’ to ‘usership’, with services emerging as a way to provide more convenient, flexible options for customers, avoiding the burden and hassle of ownership. Meanwhile, businesses can benefit from the stability of recurring revenue, predictable income streams and easier financial planning; and improve sustainability by using resources more efficiently. And providing services helps businesses get closer to their customers, with many more opportunities for contact and dialogues, discovering more about what customers value, and how to improve things. The Advanced Services Group are specialists in servitization research and practice, with work that is grounded in the latest academic research, real industry insight, business know-how and experience. The Advanced Services Group helps manufacturing companies and technology innovators on their servitization journey to develop services-led strategies and ultimately transform their business model to compete through advanced services. ASG has worked with over 300 businesses, multinational companies and SMEs to develop their growth strategies through services. Iain tells us a bit about what Advanced Services Group does, and which kind of sectors are starting to move towards service-based models. Iain then explains how companies can transition from selling products, to moving along what ASG calls the 'Services Staircase', developing different kinds of services to create value for their customers. Iain talks about the kind of benefits these companies are seeing – and how this is better for their customers, too. We hear what typically holds companies back from switching to services, and how they might get started. Iain shares a couple of diagrams from the resources on ASG’s website – the Transformation Roadmap and the Services Staircase, and I’ve included links to those in the shownotes.