Developing integrated solutions: The importance of relationships within the network

Windahl, Charlotta; Lakemond, Nicolette

doi:10.1016/j.indmarman.2006.05.010

Cited by 268 publications

(237 citation statements)

References 22 publications

(53 reference statements)

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“…Page and Siemplenski (1983, p. 89) also related systems marketing to developments within general marketing, arguing that product firms "are turning to the marketing of systems to satisfy the more extended and complex needs of their customers". Even though they did not expand this discussion further, it is closely related to more recent debates (Cova & Salle, 2008;Windahl & Lakemond, 2006;2010), linking solutions to the service marketing discourse of the Nordic School of Marketing and the emphasis on longterm relationships (Grönroos, 2011;Gummesson, 1994;Normann, 2001), and a servicedominant view on value (Vargo & Lusch, 2004). Arguably, system selling now extends beyond solving customers' operational problems to include more strategic forms of marketing, based on so-called 'solution selling' (Davies et al, 2007;Helander & Möller, 2008).…”

Section: Back To the Roots: Systems Selling And Industrial Marketingmentioning

confidence: 99%

What service transition? Rethinking established assumptions about manufacturers' service-led growth strategies

Kowalkowski

Windahl

Kindström

et al. 2015

Industrial Marketing Management

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260

276

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Research highlights• We challenge the established service transition assumption• We identify 3 service growth trajectories: becoming an availability provider; a performance provider; and an industrializer• Firms should generally downsize and standardize solutions, thus being able to offer them to a greater number of customers• Firms concurrently hold a number of system supplier roles rather than transferring from one role to another• We present a strong platform for further examination of theoretical and managerial implications of the study AbstractBoth academics and practitioners emphasize the importance for product firms of implementing service-led growth strategies. The service transition concept is well established, namely a unidirectional repositioning along a product-service continuum-from basic, product-oriented services towards more customized, process-oriented ones-ultimately leading to the provision of solutions. We challenge this service transition assumption and develop alternative ones regarding how product firms should pursue service-led growth.Using 'problematization methodology', and drawing on findings from thirteen system suppliers, we identify three service-led growth trajectories: (1) becoming an availability provider, which is the focus of most transition literature; (2) becoming a performance provider, which resembles project-based sales and implies an even greater differentiation of what customers are offered; and, (3) becoming an 'industrializer', which is about standardizing previously customized solutions to promote repeatability and scalability. Based on our critical inquiry, we develop two alternative assumptions: (a) firms need to constantly balance business expansion and standardization activities; and (b) manage the co-existence of different system supplier roles. Finally, we consider the implications for implementing service-led growth strategies of the alternative assumptions.

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Section: Back To the Roots: Systems Selling And Industrial Marketingmentioning

confidence: 99%

What service transition? Rethinking established assumptions about manufacturers' service-led growth strategies

Kowalkowski

Windahl

Kindström

et al. 2015

Industrial Marketing Management

Self Cite

260

276

View full text Add to dashboard Cite

show abstract

“…Firstly, there is the issue of definitional ambiguity leading to the possibility that researchers are actually comparing very different organisational strategies under the 'P-S' umbrella. (Neely, 2007;Windahl and Lakemond, 2006 Secondly, what are the operational implications and experiences of P-S? The change and transition required of P-S is largely portrayed as unproblematic and uncontested within the existing literature, but it is unclear as to whether this reflects the realities of creating a PSS within the context of contemporary aerospace organisations.…”

Section: How Do Firms Develop Integrated 'Product-services'?mentioning

confidence: 99%

Integrating products and services through life: an aerospace experience

Johnstone

Dainty

Wilkinson

2009

International Journal of Operations &Amp; Production Management

153

127

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PurposeExplores the evolution of 'product-service' (P-S) strategies in the aerospace sector. Despite the widespread perception that aerospace organisations are advanced in terms of P-S integration, little is known about the realities of P-S provision in the sector. Much of the existing literature is normative and prescriptive, focusing upon what organisations aspire to do, but offers little insights into how attempts to integrate products and services occur or the challenges organisations encounter. Design/methodology/approachPresents an in-depth case study of an international aerospace Original Equipment Manufacturer (OEM), referred to as 'JetCo'. A total of 18 interviews were conducted with key actors involved in the operationalisation of P-S strategy within defence aerospace and civil aerospace divisions. In addition, analysis of internal company documentation was also undertaken. FindingsReveals that current P-S strategy, which builds upon a long history of service offerings, initially evolved separately in each division in response to the particular markets in which they operate. However, there was evidence of a corporate-wide strategy for P-S provision being developed across divisions to improve co-ordination. This was founded on the recognition that P-S delivery requires the development of a stronger customer orientation, better knowledge and information management strategies, and the engagement of employees. A key challenge concerned integrating the product and service parts of the business to ensure consistent delivery of a seamless value offering to customers. Research limitations/implicationsThe research is limited to a single case organisation in the aerospace sector, and as such the findings are not necessarily generalisable to other contexts. Nevertheless, the research provides important insights into the organisational challenges of P-S provision, and as such the findings are of interest to researchers, managers and policymakers across industries involved in P-S provision. Originality/valueThe paper offers fresh empirical evidence into the development of P-S in an organisation drawn from a sector often flagged as an exemplar of P-S provision, and provides insights into the complex realities of P-S implementation and delivery. Notably, it highlights the challenge of attempting to embed an organisation-wide 'service culture' in pursuit of integrated P-S delivery, and questions the nostrums and overly simplistic models which pervade the current solutions discourse.

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“…Finne and Holmström (2013) find that service innovation can take place at the supply chain level, involving several actors at multiple levels. Even as most studies of service innovation adopt a dyadic perspective, there have been calls to look beyond the dyad (Finne and Holmström 2013;Gebauer et al 2013;Kowalkowski et al 2013;Windahl and Lakemond 2006). In reality, many small and local, as well as multinational, manufacturers operate through intermediaries (Nordin et al 2013), which extends the dyad to include more actors in the network.…”

Section: Transitive Triads Through Service Innovationmentioning

confidence: 99%

Triadic Value Propositions: When It Takes More Than Two to Tango

2016

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Value propositions are reciprocal resource-integration promises and value alignment mechanisms, operating to and from actors seeking an equitable exchange. In a business triad, any change in the relationship between two actors also affects relationships with the third actor, influencing resource integration and value creation at the value constellation level. This study of the development of a triadic value proposition analyzes how the discontinuous effects of a new service initiative alter the relationships among actors in a manufacturerdealer-user triad. A qualitative empirical inquiry examines a ten-year process, in which a leading industry incumbent enters the service business by crafting a triadic value proposition.As the value proposition evolves over time, the network ties-and thus the interdependence among manufacturer, dealer, and user-strengthen. The findings offer firms a better understanding of how to involve and collaborate with key actors to initiate discontinuous changes at the firm and network levels. These insights are particularly timely in light of the difficulties that product firms face when intermediaries are decisive for the success of their service-led growth initiatives.Keywords: value proposition; network ties; relationship development; service systems; case study application Application abstractDeveloping a value proposition is a critical strategic issue for marketing managers. Even as competitive advantage increasingly appears in networked business models though, the concept of the value proposition has yet to be extended to multilateral settings. For example, studies of service-led growth in industrial contexts often focus on the manufacturer and customer but omit service partners as critical actors. The authors therefore suggest a triadic value proposition and analyze how such value propositions might evolve over time in an industrial context, a setting in which service partners' performance often is a foundation for manufacturer success. Substantial adjustments to the arrangement between two parties likely influence what can be proposed to the third, which makes collaboration with all parties necessary to initiate any discontinuous change at the network level. To make this concept more actionable, the authors also illustrate how managers might approach the task of crafting triadic value propositions. The insight for management is straightforward: By adopting a triadic perspective while developing the value proposition, companies can increase the viability of their service system and provide a more compelling market offering.3

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Developing integrated solutions: The importance of relationships within the network

Cited by 268 publications

References 22 publications

What service transition? Rethinking established assumptions about manufacturers' service-led growth strategies

What service transition? Rethinking established assumptions about manufacturers' service-led growth strategies

Integrating products and services through life: an aerospace experience

Triadic Value Propositions: When It Takes More Than Two to Tango

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