Productization

Productization is the process of transforming a service, concept, or internal capability into a tangible, repeatable, and scalable product. This involves defining the core offering, packaging it with clear value propositions, establishing pricing models, and streamlining delivery and support. It aims to create standardized offerings that can be marketed and sold to a broader customer base, generating recurring revenue streams and reducing operational complexities associated with bespoke services. Successfully productized services prioritize user experience, clear documentation, and efficient resource allocation.

Productization meaning with examples

• A consulting firm, initially offering highly customized strategy advice, decided to **productize** its methodology into a series of workshops and online courses. This allowed them to reach a wider audience, automate some delivery, and significantly increase revenue by offering tiered pricing and easily replicated content.
• Instead of offering custom software development, a technology company decided to **productize** its core code for a client portal. This involved adding features, creating an API, building self-service documentation, and offering subscription tiers, making the technology accessible to more businesses.
• A marketing agency decided to **productize** its social media services. They created three distinct packages with varying levels of content creation, posting frequency, and engagement strategies. The move made the agency services simpler, the sales process faster, and opened up business to clients with smaller budgets.
• An engineering company chose to **productize** its proprietary design for a specific piece of equipment, changing it from a custom offering, produced per request, into a standard product, mass-produced in batches, thus reducing costs and boosting the supply chain.