A Delphi study to explore the adoption of servitization in UK companies

This paper explores and rationalises the process of servitization adoption across manufacturing firms. A Delphi research methodology has been applied to capture evidence and opinion from 33 senior executives, in 28 different sized organisations, from a cross section of British industry. The findings focus on five areas: (1) servitization and advanced services, (2) transformation: stimulus, drivers and organisational change, (3) impact on the customer and manufacturer, (4) enablers and inhibitors and (5) potential for business and the economy. Six findings are presented and collectively these contribute to our understanding of the broader change management processes that transform manufacturers to compete through advanced services.

Interactively developed capabilities:evidence from dyadic servitization relationships

Purpose – The paper challenges the focal firm perspective of much resource/capability research, identifying how a dyadic perspective facilitates identification of capabilities required for servitization. Design/methodology/approach – Exploratory study consisting of seven dyadic relationships in five sectors. Findings – An additional dimension of capabilities should be recognised; whether they are developed independently or interactively (with another actor). The following examples of interactively developed capabilities are identified: knowledge development, where partners interactively communicate to understand capabilities; service enablement, manufacturers work with suppliers and customers to support delivery of new services; service development, partners interact to optimise performance of existing services; risk management, customers work with manufacturers to manage risks of product acquisition/operation. Six propositions were developed to articulate these findings. Research implications/limitations – Interactively developed capabilities are created when two or more actors interact to create value. Interactively developed capabilities do not just reside within one firm and, therefore, cannot be a source of competitive advantage for one firm alone. Many of the capabilities required for servitization are interactive, yet have received little research attention. The study does not provide an exhaustive list of interactively developed capabilities, but demonstrates their existence in manufacturer/supplier and manufacturer/customer dyads. Practical implications – Manufacturers need to understand how to develop capabilities interactively to create competitive advantage and value and identify other actors with whom these capabilities can be developed. Originality/value – Previous research has focused on relational capabilities within a focal firm. This study extends existing theories to include interactively developed capabilities. The paper proposes that interactivity is a key dimension of actors’ complementary capabilities.

Servitization:revisiting the state-of-the-art and research priorities

Purpose – This paper consolidates the servitization knowledge base from an organisational change perspective, identifying developed, developing and undeveloped topics to provide a platform that directs future research. Design/methodology/approach – This paper addresses three objectives : a) it comprehensively examines organisational change management literature for selection of a theoretical framework, b) it classifies extant studies within the framework through a systemic literature review, and (c) it analyses 232 selected papers and proposes a research agenda. Findings – Analysis suggests increasing global awareness of the importance of services to manufacturers. However, some topics, especially related to servitization transformation, remain undeveloped. Research limitations/implications – Although the authors tried to include all publications relevant to servitization, some might not have been captured. Evaluation and interpretation relied on the research team and subsequent research workshops. Practical implications - One of the most significant challenges for practitioners of servitization is how to transform a manufacturing organisation to exploit the opportunity. This paper consolidates literature regarding servitization, identifying progress concerning key research topics and contributing a platform for future research. The goal is to inform research to result eventually in a roadmap for practitioners seeking to servitize. Originality/value - Although extant reviews of servitization identify themes that are examined well, they struggle to identify unanswered questions. This paper addresses this gap by focusing on servitization as a process of organisational change.

Szolgálatosodás, avagy az integrált termék-szolgáltatás rendszerek kialakulása és jellemzői = Servitization – characteristics and development of integrated product-service systems

A tanulmány középpontjában a szolgálatosodás folyamata, vagy más néven az átfogó megoldásokat kínáló integrált termék-szolgáltatás rendszerek kialakulása áll. Áttekintjük a szolgálatosodás XIX. századra visszanyúló kialakulásának tényezőit, és a jelenlegi vállalatok előtt álló fejlődési lehetőségeket. Foglalkozunk e rendszerekhez szükséges képességek kérdéseivel és a sikeres termék-szolgáltatás rendszerek kialakításának folyamataival. Az irodalmi összefoglalás célja, hogy a vállalati üzletfejlesztéssel foglalkozó szakembereknek, a vállalati vezetőknek ötleteket adjon a sikeres fejlődéshez és egyben a lehetséges kockázatok elkerüléséhez. = The emerging theme of servitization, or in other words, the integrated product-service systems providing complex solutions to customer demand are in the focus of this study. We overview the factors leading to servitization, and highlight the improvement opportunities in this field. The capabilities required and the development steps of successful servitization are also addressed. The objective of this short literature review is to provide ideas for business development experts and top managers on how to develop their business successfully and how to avoid risks in this development.

Az ellátási láncban elfoglalt pozíció és a szolgálatosodás – üzleti modellek Európában (Supply chain position and servitization – business models in Europe)

A szerzők célja, hogy megvizsgálják, milyen kölcsönhatásban áll az ellátási láncban elfoglalt pozíció, valamint a szolgálatosodás szintje az európai termelővállalatoknál. Vizsgálatuk azt mutatja, hogy a globalizáció és a termelés nemzetközivé válása mindkét tényezőt jelentős mértékben befolyásolja. A termelés globalizációs trendjeinek megfelelően így a kelet-európai (fejlődő), illetve a nyugat-európai (fejlett) országokban eltérő üzleti modellek válnak dominánssá, amelyek különböző ellátásilánc-pozícióval és más-más szintű szolgáltatásnyújtással jellemezhetőek. A domináns üzleti modellek mellett természetesen más üzleti modellek is működőképesnek bizonyulhatnak a két vizsgált régióban. A létesítmények elhelyezésére, valamint az üzleti eredményességre vonatkozó mutatók elemzésbe történő bevonásával cikkük az Európában működő üzleti modellek kialakításának okára, valamint jövőbeli fenntarthatóságára is megpróbál választ adni. __________ The objective of this paper is to examine the relationship between supply chain position and level of servitization in European manufacturing companies. The analysis shows that globalization and internationalization of production has dramatic impact on both phenomena. Due to the globalization trends different business models became dominant in the less developed Eastern-European and the more developed Western European countries, which can be characterized by different supply chain position and servitization level. Certainly other business models can also be successful in the two regions. Involving facility location motivations and business performance indicators the article shed light on the reasons of why these business models came alive and how sustainable they can be.

Úton a megoldásalapú gondolkodás felé – szolgálatosodási jellemzők magyarországi termelővállalatoknál (Towards solution-based thinking: characteristics of servitization at Hungarian manufacturing companies)

A cikk fő célja a magyarországi termelővállalatok szolgálatosodási folyamatának jellemzése a versenyképesség- kutatás adatainak felhasználásával. Relevanciáját az adja, hogy a nemzetközi szakirodalom a jelenséget inkább a fejlett országokban vizsgálja. A szerzők kutatásukban körüljárták, hogy a szolgálatosodás nemzetközi szakirodalom által elfogadott jellemzői mennyiben tekinthetők érvényesnek a magyarországi viszonyok közepette. A szolgálatosodást három szinten vizsgálták: stratégia, működés és pénzügyi eredményesség. Vizsgálatuk eredményei azt mutatják, hogy a nemzetközi szakirodalommal összhangban a szolgáltatások stratégiai szerepe még alacsony a magyarországi termelővállalatoknál a termelési stratégia többi versenycéljához képest. Ugyanakkor mintájukban már megtalálhatók azok a vállalatok, amelyek mind stratégiai, mind működési szinten jelentősebb hangsúlyt fektetnek a szolgáltatások nyújtására. Fontos eredmény ugyanakkor, hogy a szolgálatosodástól elvárt pénzügyi előnyök még ezeknél a vállalatoknál sem realizálódnak. _______ The main purpose of the authors is to describe the servitization process of Hungarian manufacturing companies based on data of the Competitiveness research. The relevance of this article is given by the fact that international literature analyzes this phenomenon mainly in developed countries. In the present paper they analyze to what extent characteristics of the servitization process, generally accepted in the literature, are also applicable in a developing macroenvironment, i.e. Hungary. They approach servitization from three different perspectives: strategy, operations and financial payoffs. Results of their analysis show that, in concordance with the literature, the strategic role of services at the Hungarian manufacturing companies is still lower than other manufacturing competitive priorities. However, their sample contains a number manufacturing companies that place a greater emphasis on offering services both on strategic and operational level. An important conclusion of their study is that in case of these companies financial benefits attributable to higher levels of servitization do not yet seem to materialize.

Supply chain position and servitization efforts of companies in Eastern and Western Europe

Our paper investigates the supply chain position of manufacturing companies in Europe, and the relation of this position to the extent and kind of services these companies provide. Our research builds on analyzing differences between Western and Eastern European companies. For the empirical research the database from the fifth round of the International Manufacturing Strategy Survey is used which covers 445 manufacturing companies from 13 European countries. Based on the connection between supply chain position and the extent and type of services offered dominant business models are identified both in Eastern and Western Europe.

Szolgálatosodás Nyugat-Európában és Magyarországon. Hol tartunk és merre haladunk? – Egy nemzetközi felmérés nyomán (Servitization in Western Europe and Hungary – Based on an international survey)

A szerző tanulmányában nyugat-európai és magyarországi termelővállalatok szolgálatosodását vizsgálta. A cél a szolgálatosodás mértékének és megtérülésének elemzése volt. A vizsgálatokat az IMSS kérdőíves felmérés adatain végezte el, stratégiai, operatív és eredményességi dimenziók mentén. Munkájában nemcsak Nyugat-Európa és Magyarország vállalatainak szolgálatosodásáról ad képet külön-külön, hanem az adatok közvetlen összehasonlításával megbízható összehasonlító elemzést is végzett a két térség között, melyet a tanulmány legfőbb hozzáadott értékének tekint. Nyugat-Európában a szolgáltatások kiemelkednek a versenycélok közül, míg Magyarországon gyenge helyezést érnek el a stratégiai prioritási sorrendben. Működési szinten mindkét helyen átlagosnak mondható a szolgáltatások nyújtását támogató akcióprogramokba fektetett erőfeszítés nagysága. Ez azonban nem feltétlenül mond ellent a stratégiai szintnek Nyugat-Európában, hiszen az is mondható, hogy a szolgáltatásokkal kapcsolatos programok nem zárják ki azt, hogy más területen is fejlesszenek (pl. lean programok). Az eredmények mindkét térségben a szolgálatosodás paradoxonát mutatják. ______ The paper focuses on the servitization of manufacturing companies in Western Europe and Hungary. The author's goal was to analyse the degree and the returns of servitization. The investigations were conducted using data of the IMSS, considering the dimensions of strategy, operations and returns. Besides giving a picture of the servitization of Western European and Hungarian companies, the paper also offers a reliable comparative analysis between the two regions, which can be considered as main value added of the paper. Services are among the most important competitive goals in Western Europe, but have a low ranking in Hungary. Regarding the operational level, programs supporting the offering of services are in the average in both places. This does not necessarily contradict the high strategic level in Western Europe, because we can say that programs related to servitization do not rule out improvement initiatives in other areas (e. g. lean programs). The service paradox is experienced in both territories.

Towards a Framework for Analyzing and Evaluating Servitization Potential: Case Study of ENVIE Loire

Part 4: Transition Towards Product-Service Systems

A human-centric service approach for architecting and reengineering global system

Production of a new system in any range is expanding dramatically and new ideas are there upon introduced, the logic stands behind the matter is the growth of application of the internet and granting web-based systems. Before producing a system and distribute to the customer, various aspects should be studied which multiple the profit of the system. The process of productizing a new system from being unprocessed idea until delivers to the final user has been unambiguous. In this thesis, the systematize service in a way that benefits both the customer and provider, along with an effort to establish trust and diminish customer’s risk and increase service productivity are in detail presented. Characteristics of Servitization and Productization as two faces of one coin have been interpreted. Apart from the abovementioned issues state of art, service-oriented architecture (SOA) and New Service Development (NSD) has been included in this report for solving the problem of gradually decline in value of companies.

Teollisuuden palveluliiketoiminta: Kustannuslaskennan soveltaminen ja erityispiirteet

Palveluiden liiketoiminnallinen merkitys on kasvanut viimeisten vuosien aikana ja ilmiö koskee yhä enemmän myös teollisuutta. Tämän tutkielman tarkoituksena on selvittää palvelutuotannon vaikutuksia kustannuslaskennan toteuttamiseen teollisuusyritysten näkökulmasta. Tutkimuksen avulla pyritään hahmottamaan niitä erityispiirteitä ja soveltamistarpeita, joita palveluistuminen asettaa teollisuusyritysten kustannuslaskentaprosesseille. Tutkimus toteutettiin laadullisen tutkimuksen menetelmin yhteen yritykseen keskittyvän tapaustutkimuksen avulla. Aineistoa on kerätty kohdeyrityksen sisäisten dokumenttien ja prosessikaavioiden, toiminnanohjausjärstelmän tietojen, haastattelun sekä tutkijan oman osallistumisen avulla. Tutkimuksessa havaittiin, että palveluistuminen korostaa asiakasnäkökulmaa ja vaikuttaa laajasti koko organisaation toimintaan. Nämä vaikutukset tulisi ottaa huomioon mahdollisimman kattavasti päätöksenteossa ja toiminnan suunnittelussa, jotta palveluiden liiketoimintapotentiaalista voidaan hyötyä. Kustannuslaskennan kannalta haasteena ovat erityisesti eri palvelutuotteiden toisistaan poikkeavat vaatimukset ja prosessit sekä asiakaskohtainen räätälöinti. Kustannuslaskennan kannalta on tärkeää, että yrityksessä tunnistetaan palvelutuotteiden kustannusrakenteet, jotta kustannuslaskenta voidaan toteuttaa tarkoituksenmukaisella tavalla. Palveluistuminen vaikuttaa yrityksen toimintaan ja prosesseihin, jolloin myös kustannuslaskentaa tulee muokata vastaamaan uusia olosuhteita. Palveluistumisen vaikutuksen vaihtelevat organisaatioittain, joten tiettyä palvelutuotantoon sopivaa kustannuslaskentamallia ei voida esitttää, vaan laskentamalli tulee harkita tapauskohtaisesti.

Living up to the value agenda: the empirical realities of through-life value creation in construction

Current research agendas are increasingly encouraging the construction industry to operate on the basis of 'added value'. Such debates echo the established concept of 'high value manufacturing' and associated trends towards servitization. Within construction, the so-called 'value agenda' draws heavily from the notion of integrated solutions. This is held to be especially appropriate in the context of PFI projects. Also relevant is the concept of service-led projects whereby the project rationale is driven by the client's objectives for delivering an enhanced service to its own customers. Such ideas are contextualized by a consideration of broader trends of privatization and outsourcing within and across the construction industry's client base. The current emphasis on integrated solutions reflects long-term trends within privatized client organizations towards the outsourcing of asset management capabilities. However, such trends are by no means uniform or consistent. An in-depth case study of three operating divisions within a major construction company illustrates that firms are unlikely to reorientate their business in response to the 'value agenda'. In the case of PFI, the tendency has been to establish specialist units for the purposes of winning work. Meanwhile, institutionally embedded operating routines within the rest of the business remain broadly unaffected.

Impacto da servitização no modelo de negócio de empresas manufatureiras : o caso Scania

Muitas empresas manufatureiras buscam aumentar a participação dos serviços em seus negócios. Essa estratégia é conhecida como servitização e significa aumentar a oferta de pacotes combinados de produtos e serviços com foco nos clientes e seus negócios. Porém, a servitização constitui um grande desafio para essas empresas, pois seus modelos de negócio tradicionais tem foco no desenvolvimento, produção e venda de produtos. Esta pesquisa investiga como uma empresa manufatureira modifica seu modelo de negócio para aumentar sua servitização. A pesquisa também analisa quais são as motivações para que uma empresa busque isso e quais são os desafios que ela enfrenta nessa busca. Com esses objetivos, realizou-se um estudo de caso de uma montadora de veículos pesados com operações globais e presença consolidada no Brasil. Conduziu-se entrevistas com 8 executivos da empresa, responsáveis por Vendas, Serviços, Marketing e Produção no Brasil e América Latina. As entrevistas foram combinadas com análise de documentos da empresa entre os anos de 1996 e 2011. Utilizou-se o conceito de modelo de negócio como unidade básica de análise, já que este conceito explica como uma empresa cria, entrega e captura valor. Os resultados mostram que o modelo de negócio da empresa está em transição, de seu foco tradicional em produto, para maior centralidade do cliente e suas operações. A proposta de valor da empresa passou a enfatizar o desempenho de seus pacotes de produtos e serviços nas operações dos clientes, ao invés do foco tradicional na qualidade dos produtos. A empresa também criou novas organizações, processos e métricas com foco nos clientes e novos modelos de receitas, baseados em contratos de risco e na venda de desempenho e disponibilidade. Os resultados mostram que a empresa possui motivações estratégicas, financeiras e de marketing para buscar a servitização. Eles também mostram que o alinhamento das diversas áreas da empresa e de sua rede de parceiros, para maior foco nos clientes e em serviços, ao invés do seu foco tradicional no produto, ainda representa um importante desafio empresarial.