The industry needs experts in service sales support

KONE, a leader in the lift and escalator industry, offers labour transport services that save working time and improve occupational safety at construction sites in Hong Kong. As buildings are completed, Kone will be responsible for maintaining and modernising the lifts throughout their lifetime. Siemens, on the other hand, has digitalised the Nestlé broth and gravy factory in Juuka to increase its production capacity. The two companies run the factory together, sharing the profits and risks. 

‘Industrial companies are moving fast from simply selling products to service business’ says Pekka Töytäri, professor of practice in management of product-service system sales. Competing with traditional products is increasingly difficult since the same products can be produced cheaper in such places as Asia. This is why companies seek sales growth from service solutions that are tailored for the customer; changing the traditional division of labour between the supplier and customer. 

In addition to globalisation, digitalisation is shaking up the technology industry as software has become part of business, including the heavy engineering industry. Today, even cars are software products. ‘Previously, cars were at their best straight out of the factory but now they get improvements along the way with new software-based features such as lane departure warning systems and autonomous control as soon as they are invented. One good example of this is Tesla’, professor Töytäri adds.

Shared value instead of cash-grabbing

A service-oriented approach requires new kinds of skills in sales and its management. Service providers need to know their customers’ business and processes thoroughly in order to create innovative new solutions. Providers also need to convince customers that the proposed solutions salessupport the customers’ goals and improve their business. Professor Töytäri explains, ‘The cornerstones of value-based sales are understanding, assessing, presenting and developing the added value that is generated for the customer. The added value can be much more than money, such as more environmentally friendly production or better occupational safety’. 

Professor Töytäri wants to provide the technology industry with sales experts who have skills to develop service-based businesses. ‘I never wanted to settle for the traditional sales model where you use psychological tricks to turn a profit off of someone else. For me, sales means companies working together to find opportunities for creating new value and business’, professor Töytäri concludes.

Text: Marjukka Puolakka