Steering manufacturing firms towards service business model innovation

Increasingly, manufacturing firms are turning to services as a new way of creating and capturing value. Despite its potential benefits, many new product-service providers struggle to deploy service activities effectively, not least because they fail to refect the presence of service activities in their performance management systems. This article reports the results of an in-depth case study, which examines how manufacturers can steer the transition towards services. It shows that manufacturing firms need to emphasize two separate but related dimensions of the market performance of service activities: "service adoption," refecting the proportion of customers who purchase the manufacturer's services; and "service coverage," signaling the range of service elements or the comprehensiveness of the service contract that customers opt for. These two indicators, refecting service market performance, should be supplemented with a "complementarity index" designed to disclose whether the relationship between products and services is reinforcing or substitutive. When combined, these indicators allow manufacturing firms to deploy a service-based business model in an integrated and sustainable manner. © 2013 by The Regents of the University of California. All rights reserved.

Manufacturing clarity

A framework has been developed for the UK economy that categorizes companies who provides a more defined perspective on the structure of the economy in order to help decision makers, government and industry to achieve sustained economic growth. The Institute for Manufacturing (IfM) has established a broader definition of manufacturing that equates manufacturing to the full cycle of activities from research and development, through design, production, logistics and services, to end of life management, within an economic and social context. This approach recognizes that manufacturing firms turn ideas into products and services and that they are inventors, innovators, global supply chain managers and service providers. It is hoped that this categorization provides policy-makers with a clear frame of reference for discussing measures to adapt interventions to address the needs of the diverse set of companies.

Project neptune: Improved operation of water distribution networks

Water service providers (WSPs) in the UK have statutory obligations to supply drinking water to all customers that complies with increasingly stringent water quality regulations and minimum flow and pressure criteria. At the same time, the industry is required by regulators and investors to demonstrate increasing operational efficiency and to meet a wide range of performance criteria that are expected to improve year-on-year. Most WSPs have an ideal for improving the operation of their water supply systems based on increased knowledge and understanding of their assets and a shift to proactive management followed by steadily increasing degrees of system monitoring, automation and optimisation. The fundamental mission is, however, to ensure security of supply, with no interruptions and water quality of the highest standard at the tap. Unfortunately, advanced technologies required to fully understand, manage and automate water supply system operation either do not yet exist, are only partially evolved, or have not yet been reliably proven for live water distribution systems. It is this deficiency that the project NEPTUNE seeks to address by carrying out research into 3 main areas; these are: data and knowledge management; pressure management (including energy management); and the associated complex decision support systems on which to base interventions. The 3-year project started in April of 2007 and has already resulted in a number of research findings under the three main research priority areas (RPA). The paper summarises in greater detail the overall project objectives, the RPA activities and the areas of research innovation that are being undertaken in this major, UK collaborative study. Copyright 2009 ASCE.

Integrated billing mechanisms in the Internet of Things to support information sharing and enable new business opportunities

The Internet of Things (IOT) concept and enabling technologies such as RFID offer the prospect of linking the real world of physical objects with the virtual world of information technology to improve visibility and traceability information within supply chains and across the entire lifecycles of products, as well as enabling more intuitive interactions and greater automation possibilities. There is a huge potential for savings through process optimization and profit generation within the IOT, but the sharing of financial benefits across companies remains an unsolved issue. Existing approaches towards sharing of costs and benefits have failed to scale so far. The integration of payment solutions into the IOT architecture could solve this problem. We have reviewed different possible levels of integration. Multiple payment solutions have been researched. Finally we have developed a model that meets the requirements of the IOT in relation to openness and scalability. It supports both hardware-centric and software-centric approaches to integration of payment solutions with the IOT. Different requirements concerning payment solutions within the IOT have been defined and considered in the proposed model. Possible solution providers include telcos, e-payment service providers and new players such as banks and standardization bodies. The proposed model of integrating the Internet of Things with payment solutions will lower the barrier to invoicing for the more granular visibility information generated using the IOT. Thus, it has the potential to enable recovery of the necessary investments in IOT infrastructure and accelerate adoption of the IOT, especially for projects that are only viable when multiple benefits throughout the supply chain need to be accumulated in order to achieve a Return on Investment (ROI). In a long-term perspective, it may enable IT-departments to become profit centres instead of cost centres. © 2010 - IOS Press and the authors. All rights reserved.

Everywhere and nowhere: nearshore software development in the context of globalisation

Offshore software development has been identified as one of the most striking manifestations of contemporary globalisation and as evidence of placelessness, the idea that information and communication technologies have rendered location irrelevant. Research in the International Business and Information Systems fields, in contrast, has suggested that all locations are not equal and has identified a number of characteristics that may influence the attractiveness of a location for multinational investment and offshoring, respectively. These literatures, however, focus almost exclusively on quantitative, economic characteristics that are seen as fixed and applying uniformly throughout a whole country. They therefore offer little guidance on the suitability of particular locations as offshoring destinations, especially in countries without a track record in offshore software development. Drawing on two cases of nearshore software development centres set up by offshore service providers in the Caribbean, this paper illustrates that, while the initial decision to establish the ventures reflected a logic of placelessness, characteristics of these particular locations affected their subsequent success. Through the findings, we therefore develop a typology of espoused, unanticipated and remediable locational characteristics, which illustrates that locational attractiveness may vary significantly within countries and that offshore service providers and government agencies can modify locational characteristics to their advantage.