Servitization of capital equipment providers in the pulp and paper industry

Abstract

The digitalisation of society and a reduction in the need for printed media has resulted in dramatic changes to the pulp and paper industry. During the past 10 years, investments in this industry decreased by approximately 40 %. Consequently, service provision has become more important and a larger portion of the business of many capital equipment providers. This chapter describes and discusses the servitization of capital equipment providers regarding technology, business model, offering, organisation and network. Technology is a driver of servitization in the pulp and paper industry and it has introduced a wide range of new offerings for customers. A key issue for capital equipment providers have been to start charging for services, i.e. to turn services for free to services for fee.