What Is Productize?
"Productize" refers to the process of developing or altering a process, idea, skill, or service to make it marketable for sale to the public. Productization involves taking a skill or service that has been used internally and developing into a standard, fully-tested, packaged, and marketed product. For example, a consultant might productize their expertise by creating a product or service based on that knowledge. However, productization is not the same as the production of a good or service.
- "Productize" refers to the process of developing a process, idea, skill, or service to make it marketable for sale to the public.
- Productization involves taking a skill or service that has been used internally and developing into a fully-tested, packaged, and marketed product.
- A marketer can productize by writing a "how-to" book for new entrepreneurs teaching them how to market their business.
Productization does not necessarily involve a physical good. Productization can involve taking a capability, intellectual capital, or knowledge and transforming it into a product or service to offer to customers. The customers could be within the same industry or an entirely different one.
Services may be productized, packaged, and sold just like physical products. For example, a marketer could write a "how-to" book for new entrepreneurs that would teach them how to market their business or a web designer could create an education webinar series on how to design web sites. Productization is a key strategy in creating and running a service-based business.
Productization of a Service
Productized services can also be packaged and offered as subscription-based services. Those that are freelancers and entrepreneurs might generate their income from providing a service such as writing or business management. The expertise could be productized into a course to teach how to write a business plan. In short, productization typically involves an offshoot business from the knowledge, equipment, or systems needed to run the primary business.
Productization also involves packaging a solution for a customer and making it a standard offering so that profits can be enhanced. In other words, a consultant who performs one-on-one advice could productize the expertise used daily into a do-it-yourself-kit and sell that product. The productization process means each customer would get the standardized product or service offering. As a result, more products could be sold with less labor time or resources involved–boosting profitability.
Productize: Tips for Starting a Service-Based Businesses
Many services can be productized into an enterprise that can be scaled, delegated, and automated to create a sustainable, recurring revenue stream. In creating a productization strategy, the product must solve a recurring problem for customers. The service offering must also be something clients would pay for on a recurring basis.
Formulating the terms of the business include defining the conditions for how the services are rendered while keeping the workload at a sustainable level. For example, a consultant or freelancer might offer services on a one-to-one basis and therefore, only have a limited amount of time each day to earn a living. Productization allows for a standardized method of creating, producing, and distributing the creative or intellectual capital being offered to current clients. The goal is to take an internal expertise and package it in a way that it earns additional revenue without a lot of added cost or labor time with increases in sales.
Examples of Productization
A bank might have an internal payment system to send money to and from its branches throughout the U.S. The bank decides to productize that ability as a payment service and offer it to smaller, regional banks for a fee.
An automobile manufacturer might offer design and engineering advisory services to manufacturing companies in other industries.
A company that has its own logistics such as a fleet of trucks or access to rail could offer logistic services to other companies to deliver their products for a fee.
A retail company or bookstore chain could rent out its facilities to host events for other industries utilizing the retail space when the stores are not typically open for business.