Background: The servitization process of capital goods manufacturing is a contemporary issue and indicates that organizations are transforming from offering only products and goods to providing combinations of augmented services with their products.

Purpose: The purpose of this thesis is to contribute to the body of knowledge on servitization and the challenges that manufacturers face in the transformation process towards servitization in a B2B context.

Method: Through conducting a single- case study on a capital goods manufacturing organization in Sweden and interviewing six directors within the organization we have developed and intensified the current literature covering the challenges that encounter the organizations within this process.

Findings/conclusions: Challenge facing a servitized manufacturer business is how to handle service offering customization to suit the final customers ' distinctive requirements. To guarantee adequate delivery, it is essential to have standardized control processes to guarantee consistency and quality of service offerings.