The economies of the industrialized world have become dominated by services. Many manufacturing companies have changed from producing products to providing services. However, many companies still lag behind in this transformation. It is observed that most of the published methodologies are at an advanced level and provide minimal assistance to help managers and especially the managers of small and medium enterprises (SMEs) who are interested in easy-to-use methodologies for transforming their product range. Therefore, a model that assists the transformation of products into services is proposed, which is at a level that can be directly applied by SMEs. A utility-driven approach is followed to establish the model that consists of seven steps. In the initial steps, a product that is to be servitized is selected and broken down into its utility features and customer barriers. Furthermore, options for increasing utility and reducing barriers are presented such that the overall tangibility of the existing product is reduced. This reduction in tangibility in both physical and psychological dimensions is defined as servitization in the present study. This article presents a practical framework for the transformation of company offerings so that they are gradually adjusted to a service economy.
Abstract. Globalization has changed the competitive environment of companies. This paper aims to contribute to understanding the changes a company can face through analyzing the impact of drivers and effects of globalization on the models of industry competition and the company value chain. The boundaries between the forces of competition are fading as economic globalization has led to a new dynamic in the competitive situation where companies and activities of the value chains change places between forces and impact and interact with each other in new ways. The boundaries of companies and their core can and are being redefined. As this potential evolves through offshoring, outsourcing and value chain fragmentation, the pressure of competition forces a continuing and increasing move in this direction.
Purpose This study aims to present a novel approach of using technology trends to trigger product ideas. It is primarily addressed to product ideation where limited applied approaches are available. Design/methodology/approach The model is built by extending the theoretical framework of ideation study. It comprises morphological analysis with product breakdown as primary and technological trends as a secondary dimension to prompt product ideas from user’s intuition. The approach is multidisciplinary using insights from the areas of cognition, management strategy and project management. The model is further tested in two different test configurations with university students (n = 81). Findings The results indicate that this systematic model can increase the quality and number of ideas generated by the students compared to generally practised approaches. It is shown that this approach increases the chances of triggering ideas. Research limitations/implications The testing of the present model is comprehensive and in no means exhaustive. Practical implications Because of the shrinking product life cycle, organisations have a need for systematic product ideation models that can assist in innovating their product ranges. It is important to study idea generation for products to not only assist product innovation but also comprehensively understand the process of creativity. The proposed model is primarily addressed to product innovation projects where limited practical tools are available for product ideation. The present model is easy to apply and has the tendency to generate novel product ideas that can lead to successful product innovations. Originality/value Product innovation currently has limited systematic ideation tools where this study contributes.
It is an agreed fact among scholars that services are more sustainable compared to the products. By offering services, traditional companies can lock their customers into a long-term and sustainable revenue generation settlement. Available academic literature is abundant with methodologies related to service development. However, this study investigates various value adding service options related to financing and ownership of a product that can be offered on top of the existing products. It is important to understand these options from the consumer as well as supplier perspective. The most well established options available for financing/ownership are compiled, and sorted with respect to intangibility, ownership, financing and value addition scale. The study argues that the identified options incrementally add value to the existing offering by increasing the purchasing power and reducing the ownership obstacles for the customers. However, for the supplier, the decision depends on the trade-off between value addition for the customers and the business model changes required.
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