Cost-efficient co-creation of knowledge intensive business services

Kuula, Seppo; Haapasalo, Harri; Tolonen, Arto

doi:10.1007/s11628-018-0380-y

Cited by 39 publications

(38 citation statements)

References 49 publications

(69 reference statements)

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“…Second, new business models require revising operational processes and activities for global delivery. In addition, to successfully deliver value from digitalization, companies need to be able to develop scalable platforms that utilize modularity to achieve both efficiency and effectiveness in what they offer [3,7,44]. Digital capabilities enable continuous improvement of routines related to information flow, integration of service activities, and centralized monitoring of service processes.…”

Section: Digitalization and Value Deliverymentioning

confidence: 99%

“…These efficiency advances are among the main drivers of digital business model development [25]. When aiming for cost efficiency, it is also important to continuously review co-creation initiatives so that the extra costs occurring from joint digitalization efforts are weighed in the balance [43,44]. However, the heaviest costs come from product development and IT infrastructure, which require very substantial upfront investment and continuous updating over time [35,36].…”

Section: Digitalization and Value Capturementioning

confidence: 99%

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Reviewing Literature on Digitalization, Business Model Innovation, and Sustainable Industry: Past Achievements and Future Promises

2019

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Digitalization is revolutionizing the way business is conducted within industrial value chains through the use of Internet of Things (IoT) technologies, intensive data exchange and predictive analytics. However, technological application on its own is not enough; profiting from digitalization requires business model innovation such as making the transition to advanced service business models. Yet, many research gaps remain in analyzing how industrial companies can leverage digitalization to transform their business models to achieve sustainability benefits. Specifically, challenges related to value creation, value delivery, and value capture components of business model innovation need further understanding as well as how alignment of these components drive sustainable industry initiatives. Thus, this special issue editorial attempts to take stock of the emerging research field through a literature review and providing a synthesis of special issue contributions. In doing so, we contribute by developing a framework that communicates and sets the direction for future research by linking digitalization, business model innovation, and sustainability in industrial settings.

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Section: Digitalization and Value Deliverymentioning

confidence: 99%

Section: Digitalization and Value Capturementioning

confidence: 99%

Reviewing Literature on Digitalization, Business Model Innovation, and Sustainable Industry: Past Achievements and Future Promises

2019

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“…The major benefits of establishing a clear product structure for company offering, can be seen in the ability to unify the conception of the product [21], [26], [43] and to enhance the communication and reporting between different groups [21], [26], [44]. The productization with the product structure concept has been studied at least for manufactured products [15] and for service products [31], [45], but there are room for supporting studies.…”

Section: A Productizationmentioning

confidence: 99%

Commercial and Technical Productization for Fact-Based Product Portfolio Management Over Lifecycle

Lahtinen

Mustonen

Härkönen

2021

IEEE Trans. Eng. Manage.

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Increasing product variety and expanding commercial offering create a challenge for companies in terms of keeping their product portfolio profitable and managing it through the entire lifecycle of products. Effective productization and product portfolio management (PPM) practices, supported by product structure considerations, may hold a key for product profitability over lifecycle. This article examines the current practices and improvement possibilities in productization and PPM, including the targets and key performance indicators (KPI), by considering the product lines of a global engineering company. The analysis utilizes the previous literature, company interviews, and relevant company materials. The article demonstrates company difficulties, which are stemming from inadequate definition of productization and imperfect PPM targets and KPIs over the product lifecycle. An initial framework is formed to support more holistic productization over product lifecycle alongside creating suitable PPM targets and KPIs.

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“…In this study, the previous research on product structures concerning commercial and technical views was studied by conducting a brief literature review. Then, the logic of commercial and technical product portfolios [7,10,[13][14][15] was adapted to describe a case product sold as a product-oriented, use-oriented, and result-oriented PSS. Car was chosen as the case product due to its comprehensibility.…”

Section: Methodsmentioning

confidence: 99%

“…While sales items and the commercial side of the portfolio define what is marketed and sold to the customer, version items and the technical side of the portfolio define what is produced [12]. The same logic has since been applied in practice to physical products [13] as well as service products [14][15]. In case of services, the version item is formed by service processes and subprocesses, which can be connected to the required service delivery resources [10].…”

Section: Introductionmentioning

confidence: 99%

From Product to Service Business: Productization of Product-Oriented, Use-Oriented, and Result-Oriented Business

Mustonen

Härkönen

Haapasalo

2019

2019 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM)

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Companies considering a shift from manufacturing and selling physical products to selling services face several questions on service structure and repeatability. The current and potential offerings should be compared in the light of commercial and technical portfolio. The commercial offering visible to the customer needs to be productized and linked to the technical structure for services, including the needed processes and resources. From the financial viewpoint, the cost of delivering the offering should be known to be able to set a profitable price. Productization through a common product structure that acknowledges the commercial and technical views could be used as a tool to clarify the current and potential offerings and transform them into systematic and repeatable form that is comparable. The present study provides an example of using this kind of product structure to model a physical product offered as part of product-oriented, use-oriented, and result-oriented product-service systems. The presented product structure logic enables companies to clarify the offering, describe the processes and resources needed for delivering the offering, and evaluate its profitability.

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Cost-efficient co-creation of knowledge intensive business services

Cited by 39 publications

References 49 publications

Reviewing Literature on Digitalization, Business Model Innovation, and Sustainable Industry: Past Achievements and Future Promises

Reviewing Literature on Digitalization, Business Model Innovation, and Sustainable Industry: Past Achievements and Future Promises

Commercial and Technical Productization for Fact-Based Product Portfolio Management Over Lifecycle

From Product to Service Business: Productization of Product-Oriented, Use-Oriented, and Result-Oriented Business

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