To drive sustainable growth and differentiation, B2B manufacturers must expand their service innovation beyond predictive and remote services by addressing broader customer needs—enhancing product and operational performance, and even offering managed operations services.
Many B2B manufacturers are making great progress in predictive maintenance and remote services. These innovations have helped improve uptime, reduce downtime, and optimise maintenance costs.
But here’s the challenge: they are not enough to drive real growth. As more companies adopt similar capabilities, these services are becoming standard—expected rather than valued. They no longer create differentiation.
Meanwhile, customers are evolving. They need more than just well-maintained equipment. They are looking for better operational performance, cost efficiencies, and shifting their core business, leveraging emerging digital and data-driven solutions.
To drive sustainable growth and competitive advantage, B2B manufacturers must rethink what service innovation really means. This article explores the dimensions to expand your service portfolio beyond predictive and remote services to unlock new revenue streams and long-term success.
For many B2B manufacturers, service innovation primarily focuses on reducing downtime, and reducing maintenance cost. The logic is clear—helping customers keep their equipment running creates value and strengthens relationships. However, this narrow focus often results in sustaining innovation rather than breakthrough growth.
Relying too heavily on predictive maintenance and remote services can put manufacturers at risk in several ways. While these offerings provide value, they do not create long-term differentiation or sustainable growth. As customer needs evolve and competition intensifies, manufacturers who fail to broaden their service innovation strategy may face serious challenges.
One major risk is lack of differentiation. Predictive maintenance and remote monitoring have become industry standards. Most competitors offer similar solutions, making it difficult to stand out. When customers see these services as expected rather than exceptional, pricing pressure increases, and margins shrink. Without a clear competitive edge, manufacturers risk being seen as interchangeable suppliers rather than strategic partners.
Another challenge is the shrinking market for maintenance services. Many customers are building maintenance capabilities, investing in AI-driven asset management, or working with third-party service providers. As a result, manufacturers may see a declining demand for traditional service contracts. If companies do not adapt, they risk losing revenue streams that were once reliable.
There is also the issue of missed opportunities in digital and data-driven services. Simply adding connectivity and sensors to products does not create meaningful value. Customers expect actionable insights, process optimisation, and even automation. Without a clear strategy for monetising data and software-driven services, manufacturers may fall behind companies that offer integrated, high-value solutions.
Finally, competitive threats are increasing. If manufacturers do not expand their service offerings, others will step in to fill the gap. Digital-native service providers, system integrators, and even tech startups are entering the market with flexible, customer-centric solutions. These players are not bound by traditional service models and can move quickly to meet evolving customer demands.
Manufacturers that continue to rely only on predictive and remote services risk being left behind. To stay competitive, service leaders must rethink their approach, explore new service models, and create offerings that go beyond maintenance to deliver greater business value.
To drive sustainable growth and differentiation, manufacturers must address a broader range of customer needs, from optimising product performance to improving business processes and even delivering managed operations.
This requires a strategic shift in how B2B manufacturers view their value proposition and service portfolio. Instead of thinking only about keeping equipment running, they must explore how to help customers achieve better outcomes. This means designing services that optimise processes, improve efficiency, and create measurable business value.
Manufacturers can expand their service offerings across multiple areas. The following areas represent different levels of service innovation, ranging from basic product-related services to fully integrated ecosystem solutions.
Manufacturers traditionally focus on selling products, but alternative service models can better serve customer needs. Leasing, renting, or offering time-based access to equipment can provide customers with more flexibility.
Ensuring equipment uptime is a core service, but manufacturers can expand their approach. Offering self-service options, data, insights, alerts, recommendations, diagnostic tools, training for maintenance teams, and advanced spare parts solutions can add more value. Full-service maintenance contracts and uptime guarantees create a stronger value proposition.
Helping customers optimise how their equipment performs opens new service opportunities. Providing insights and training on performance optimisation can be a starting point, but more advanced services—such as full-service optimisation and performance-based guarantees—can drive higher value.
Example: TOMRA Insight Optimising Recycling Operations
OMRA Insight is a cloud-based data platform that transforms sorting machines into connected devices, enabling recycling operations to optimize their processes through real-time monitoring and digital applications.
By collecting near-live data on material streams, TOMRA Insight provides valuable performance metrics that help businesses optimize machine performance, reduce operating costs, and improve sorting efficiency.
Beyond maintaining and optimising the equipment, manufacturers can help customers use their products more effectively. Services that provide insights on usage patterns, training for operators, and recommendations for efficiency improvements can enhance customer performance.
Example: MAN Trucks Enhancing Efficiency with Driver Monitoring
MAN Trucks introduced a driver behaviour monitoring system that helps fleet operators reduce fuel consumption, lower operational costs, and improve safety.
MAN provides measurable business impact by leveraging real-time vehicle data and AI-powered insights, strengthening customer relationships and creating a competitive edge.
A significant opportunity lies in supporting the broader processes where equipment is used. Manufacturers can offer process insights, workflow education, and even full-service outsourcing.
Managed operations services, where the service provider takes responsibility for certain processes, including operating the equipment, provide customers with high-impact solutions, allowing them to shift their core business, while strengthening long-term partnerships.
Example: Tetra Pak’s Plant Secure offering.
This service focuses on optimizing the entire production process of food and beverage manufacturers by providing process insights, workflow improvements, and operational management.
At the highest level of service innovation, manufacturers can create connected solutions that go beyond individual customers. By integrating with broader ecosystems, they can offer platform solutions, industry-wide transparency, and collaborative networks that provide shared value across multiple stakeholders.
Example: Apple’s App Store
Apple’s App Store ecosystem enables third-party developers to create and distribute applications, extending the functionality of Apple devices while generating value for both developers and users. This platform approach fosters a thriving digital economy where Apple facilitates transactions, security, and global reach, benefiting multiple stakeholders.
Example Siemens' MindSphere
Siemens' MindSphere is an industrial IoT ecosystem that connects machines, systems, and data across industries, enabling manufacturers to optimize operations through real-time analytics and AI-driven insights. By providing an open platform for partners and customers to develop and integrate applications, MindSphere drives cross-industry innovation and efficiency at scale.
For B2B manufacturers, predictive maintenance and remote services have been important steps in service innovation. But they are no longer enough to drive differentiation and long-term growth. As customer expectations evolve and competition shifts, manufacturers must rethink their approach to service innovation.
The real opportunity lies in expanding beyond maintenance-focused services to create broader value. By developing offerings that optimise product performance, improve customer processes, and integrate with ecosystem solutions, manufacturers can unlock new revenue streams and strengthen their market position.
Service leaders who embrace this shift will not only stay ahead of competitors but also build deeper, more strategic relationships with their customers. The future of service innovation is not just about keeping equipment running—it’s about enabling business success.
Expanding service innovation beyond predictive and remote services is a critical challenge—and an even bigger opportunity. But how can manufacturers successfully navigate this transformation? What strategies are leading companies using to drive growth through advanced service innovation?
Join us at the Service Transformation Summit on Driving Service Innovation for Growth to explore these questions with industry leaders, experts, and peers.
Will dive into the key strategies, case studies, and frameworks needed to build a high-value service business.
Don’t miss this chance to gain actionable insights, exchange ideas, and accelerate your service transformation.