Designing and Configuring the Value Creation Network for Servitization

Despite the numerous benefits that the implementation of a servitization strategy can bring to manufacturing companies, several challenges have to be faced. Among others, changes in competences, resources, organisational structure and value network relationships are required in order to create, capture and deliver new value. In such a context, this paper investigates how the servitization level of a product-service offering impacts on a product-service provider as well as on its value-creation network. A theoretical conceptual model, derived from literature, is developed and then expanded into an explanatory conceptual framework through a case-based methodology. Evidence from the empirical investigation is then discussed and summarised into twelve propositions. Finally, contribution to both theory and practice, as well as some directions for future research, is pointed out.

[1]  Rogelio Oliva,et al.  Managing the transition from products to services , 2003, International Journal of Service Industry Management.

[2]  A. Neely.  Exploring the financial consequences of the servitization of manufacturing , 2008 .

[3]  Yves Pigneur,et al.  Business Model Generation: A handbook for visionaries, game changers and challengers , 2010 .

[4]  Jack R. Meredith,et al.  Theory Building through Conceptual Methods , 1993 .

[5]  N. Agrawal,et al.  Winning in the aftermarket , 2006 .

[6]  Stephen W. Brown,et al.  Manufacturers forming successful complex business services , 2008 .

[7]  Stephen L. Vargo,et al.  Evolving to a New Dominant Logic for Marketing , 2004 .

[8]  Daniel Kindström.  Towards a service-based business model – Key aspects for future competitive advantage , 2010 .

[9]  T. Friedli,et al.  Behavioral implications of the transition process from products to services , 2005 .

[10]  E. Fleisch,et al.  Overcoming the Service Paradox in Manufacturing Companies , 2005 .

[11]  Roberto Pinto,et al.  A classification model for product-service offerings , 2014 .

[12]  S. Balasubramanian,et al.  Creating Growth With Services , 2004 .

[13]  C. K. Prahalad,et al.  THE DOMINANT LOGIC: RETROSPECTIVE AND EXTENSION , 1995 .

[14]  Paolo Gaiardelli,et al.  Aligning the servitization level of a company with its organizational configuration , 2011 .

[15]  A. Davies,et al.  Charting a path toward integrated solutions , 2006 .

[16]  Tim Baines,et al.  The servitization of manufacturing: A review of literature and reflection on future challenges , 2009 .

[17]  E. Gummesson.  Extending the service-dominant logic: from customer centricity to balanced centricity , 2008 .

[18]  T. Baines,et al.  Servitization of the manufacturing firm: exploring the operations practices and technologies that deliver advanced services , 2013 .

[19]  Valérie Mathieu.  Product services: from a service supporting the product to a service supporting the client , 2001 .

[20]  Johann C.K.H. Riedel,et al.  The PSO triangle: designing product, service and organisation to create value , 2009 .

[21]  Xabier Drèze,et al.  Su programa de lealtad lo está traicionando , 2006 .

[22]  Christopher A. Voss,et al.  Case research in operations management , 2002 .

[23]  A. Tukker.  Eight types of product–service system: eight ways to sustainability? Experiences from SusProNet , 2004 .

[24]  Jan C. Aurich,et al.  Continuous improvement of industrial product-service systems , 2010 .

[25]  Kathrin M. Möslein,et al.  Hybrid value creation: a systematic review of an evolving research area , 2011 .

[26]  Veronica Martinez,et al.  Challenges in transforming manufacturing organisations into product‐service providers , 2010 .

[27]  Jay R. Galbraith.  Organizing to Deliver Solutions , 2002 .

[28]  Jörg Becker,et al.  The challenge of conceptual modeling for product–service systems: status-quo and perspectives for reference models and modeling languages , 2010, Inf. Syst. E Bus. Manag..

[29]  S. Vandermerwe,et al.  Servitization of business : Adding value by adding services , 1988 .

[30]  A. Davies.  Moving base into high-value integrated solutions: a value stream approach , 2004 .

[31]  Matthew B. Miles,et al.  Qualitative Data Analysis: An Expanded Sourcebook , 1994 .

[32]  R. Amit,et al.  The Business Model: Recent Developments and Future Research , 2011 .

[33]  P. Matthyssens,et al.  Service addition as business market strategy: identification of transition trajectories , 2010 .

[34]  Paolo Gaiardelli,et al.  Configure the service network managing inter-firm relationships , 2011 .