Digitalisation stays hard for product companies that add services, because their systems and agreements were built for making and selling. Service revolves around the machine at the customer’s site, for years after delivery. Data on that machine’s configuration, contract and history is scattered across the enterprise resource planning (ERP) system, spreadsheets and separate tools, or missing.
More and more product companies also offer repairs and maintenance. Canon, for example, makes and sells cameras and printers and also provides maintenance and repairs. Adding services to products is called servitisation.
Organisations that mainly maintain their own assets run into the same obstacles. Think of NS, the Dutch railway operator, which maintains its own trains, or a telecoms provider such as KPN.
These companies often have a few things in common:
- many customer service staff who schedule appointments and work;
- large and complex assets;
- a strong need to optimise schedules;
- many people and vehicles that are often on the road.
Running all of that takes systems that fit together well. That is exactly where the problems start.
Why does service start with the machine rather than the customer?
Because a service contract sets out what happens to a specific machine. In IFS Cloud, a contract is set up per customer, with service lines for each type of work. Each line names the machines it covers, the response and resolution times from the service level agreement (SLA), and an invoice type. Without a reliable list of machines at customer sites, the installed base, you cannot manage a contract properly.
That installed base can build itself from sales. According to the IFS documentation, a serialised part delivered on a customer order can become a service object automatically. The sales part or order line must be set up for it. IFS tracks warranty for serialised parts only.
So the first step comes before any system choice. Agree which products get a serial number and who records it at delivery. At Optronica Service, which maintains ophthalmic equipment, the system also had to link work to each device and serial number. For warranty and claims after that, see our article on warranty and claims management.
Where do product companies get stuck when they add services?
Product companies get stuck on outdated applications, awkward integrations, unreliable machine data and manual work. Then there are silos between sales, service and finance, IT that cannot grow, lagging security, and applications staff avoid.
1. An outdated set of applications
Many organisations have used the same applications for years, and they no longer keep up with what customers and markets need. Even a small change then takes a lot of time, money or specialist knowledge.
Applications you hardly ever use can simply be retired. For outdated applications you still depend on, there are four routes:
- replace them with a SaaS solution (replace);
- move them from on-premises to a cloud environment (relocate);
- rebuild them with modern technology (rebuild);
- put a modern, user-friendly layer on top (reuse).
2. Systems and applications that are hard to integrate
Systems and applications need to “talk” to each other, and in many organisations they can’t. Legacy applications often work as islands, on a different technical basis from newer ones. APIs and an integration framework bridge that gap. A good framework prevents a tangle of point-to-point links and handles security, performance and documentation.
As a second step, follow one real service call from phone call to invoice. Every system it touches, and every time someone retypes data, shows which integrations you actually need. In a blog from July 2026, IFS gives manufacturers similar advice for choosing an asset management platform. It suggests having software vendors demonstrate how an equipment issue moves through to financial reporting.
3. Inaccurate and unreliable data
Many companies work with data that is wrong or not available in (near) real time. You are always a step behind, and technicians arrive at the customer poorly prepared.
A single, integrated business application where staff quickly find everything relevant then becomes one source of truth. For service, the most important dataset is the installed base. Without serial numbers at delivery, it does not build itself.
4. Lost time and inefficiency
Many organisations still rely on manual processes, such as entering data, forwarding appointments and creating and processing work orders. That takes time and invites errors. Automating repetitive steps and using digital work orders cuts that lost time. Read where service staff lose the most time.
5. Organisational silos
Sometimes the silos sit in the organisation itself. Departments work in isolation, and one site picks a software package without checking whether it fits what the others use. Digitalisation then loses its direction.
In service, the service contract is where sales, service and finance meet. As a third step, have them draw it up together. Sales then promises nothing that service cannot deliver, and finance knows what is included.
6. Lack of scalability
An IT environment that cannot grow with you makes it hard to respond to new technology, markets and customer needs. In IFS Cloud, service, ERP and enterprise asset management (EAM) share one platform. IFS Service Management is component-based, so you add capabilities when your operation needs them.
You could start with service contracts and add IFS Planning & Scheduling Optimization later. See what IFS Service Management covers.
7. Weak security and support
Besides the GDPR, more rules have arrived since 2022. The EU’s NIS2 Directive covers critical product manufacturing, as a rule from medium-sized organisations upwards. In the Netherlands, it took effect on 15 August 2026 as the Cyberbeveiligingswet (Dutch Cybersecurity Act).
Organisations in scope of the Dutch act register with the NCSC, take appropriate measures and report significant incidents. The act also includes a training requirement for board members, so as a managing director you are personally involved.
If your products contain software or a network connection, look at the Cyber Resilience Act (CRA) too. Since 11 September 2026, manufacturers must report actively exploited vulnerabilities and severe incidents. The main obligations apply from 11 December 2027. You then state a support period per product and handle vulnerabilities during it.
In practice, that only works if you know which software version runs on each machine. That takes the same installed base that service relies on. An experienced IT partner with security specialists and a support team can take on part of this work. See what you arrange yourself in IFS maintenance and support.
8. Complex business applications that are hard to use
Digitalisation only works when staff use business applications widely and willingly. So make usability a requirement in every new application or redesign. See also the five biggest barriers to ERP adoption.
Do you have to replace your ERP system first?
Not necessarily. You can keep your ERP system and manage selected service processes in IFS Cloud. You then decide which system holds the installed base, contracts and invoicing, and how costs and invoices flow between them. Eqeep works with your team to map which data this needs and which system should hold it.
Optronica Service shows that a service application can run alongside an existing ERP system. In an earlier project, it connected the standalone IFS Field Service Management (FSM) application to its AFAS ERP system through FSM Connect. That was the earlier FSM solution, not IFS Cloud. Read the Optronica story.
See what IFS Field Service Management covers. An extensive FSM set-up is not right for every company. If your service process is small and simple, a lighter set-up often works better.
Questions about adding services to your products
What is servitisation?
Servitisation means adding services, such as maintenance, repairs and service contracts, to the products a company makes and sells. Sandra Vandermerwe and Juan Rada described it in 1988 in the article “Servitization of business: Adding value by adding services”.
Does NIS2 apply to a product company?
Possibly. NIS2 covers critical product manufacturing, as a rule from medium-sized organisations upwards. In the Netherlands it applies through the Cyberbeveiligingswet since 15 August 2026, and the Dutch government’s NIS2 self-assessment shows whether you are in scope. Belgium has had its own NIS2 act since 18 October 2024, with the Centre for Cybersecurity Belgium (CCB) as the point of contact.
What do you need to see the margin on a service contract?
Service lines that name the machines they cover, and costs booked on work orders under the contract. Each service line also records how the work is invoiced: at a fixed price, on the resources used, or free of charge. In IFS Cloud, Service Contract Analysis then shows the costs and revenue for each contract. For how to protect that margin, see service contracts and margins.
Discuss your IFS question
Tell us where you stand with IFS. You get one conversation and a clear next step. Bring a service contract you sell today, with the machines it covers. Discuss your IFS question
