Reversed servitization paths: a case analysis of two manufacturers

Finne, Max; Brax, Saara; Holmström, Jan

doi:10.1007/s11628-013-0182-1

Cited by 79 publications

(85 citation statements)

References 59 publications

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“…This refers to cases of deservitization, where firms to various degrees, have turned away from in-house service provision (Cusumano et al, 2014;Finne et al, 2013). Future research should examine the conditions under which firms will undertake service infusion and service defusion initiatives.…”

Section: Limitations and Research Directionsmentioning

confidence: 99%

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

Kowalkowski

Windahl

Kindström

et al. 2015

Industrial Marketing Management

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: Limitations and Research Directionsmentioning

confidence: 99%

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

Kowalkowski

Windahl

Kindström

et al. 2015

Industrial Marketing Management

260

276

View full text Add to dashboard Cite

show abstract

“…Instead, service innovation takes place throughout the service typology, both planned and ad hoc , and "reversed" service infusion trajectories, from more to less advanced services, are possible too (Finne et al, 2013).…”

Section: Service Typologymentioning

confidence: 99%

Service innovation in product-centric firms: a multidimensional business model perspective

Kindström

Kowalkowski

2014

Journal of Business &Amp; Industrial Marketing

357

326

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Purpose-This article investigates the nature and characteristics of business model elements required for successful service innovation. The authors examine which unique resources and capabilities product-centric firms should develop and deploy to pursue service innovation.Design/methodology/approach-Data collected from several research projects support iterations across empirical data and theory, in an abductive process. Empirical data come from product-centric firms; interviews and focus groups were the main data collection methods.Findings-Specific resources and capabilities are needed for the proposed business model elements, as defined by the overarching strategy and structure. Firms can approach the process of service innovation from different starting points and sequences, depending on the context.Research limitations/implications-Because it takes a synthesizing approach, this research lacks some detail. By taking a business model approach with a holistic perspective, it forgoes detailed descriptions to provide greater breadth.Practical implications-Managers can use business models as tools to visualize changes, which should increase internal transparency, understanding, and awareness of service opportunities and necessary changes. Dependencies exist among elements; a change in one element likely affects the others. This study provides insights into which efforts are necessary and offers managers a guiding framework.Originality/value-By providing a multidimensional perspective on service innovation, this study merges various previous research into a synthesized discussion. Combining a resources and capabilities perspective with a business model framework also leads to new insights regarding service innovation and associated activities. Paper type-Research paper

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“…The photocopier industry is one of the forerunners of servitization (Finne et al 2013;Matsumoto and Kamigaki 2013). The original equipment manufacturers (OEMs) of photocopiers have profited from the sales of services and consumables and pioneered the implementation of servitized business models that are now common practice in many other industries.…”

Section: Introductionmentioning

confidence: 99%

“…The original equipment manufacturers (OEMs) of photocopiers have profited from the sales of services and consumables and pioneered the implementation of servitized business models that are now common practice in many other industries. For example, some of the challenges that photocopier OEMs have faced well in advance of many other manufacturers include the sale of the products' usage instead of the products themselves, the adoption of pay-per-output (pay-per-page) pricing models and the delivery of integrated solutions and outsourcing services (Finne et al 2013;Visintin 2012).…”

Section: Introductionmentioning

confidence: 99%

Photocopier Industry: At the Forefront of Servitization

Visintin

2014

Servitization in Industry

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The photocopier industry is undoubtedly one of the forerunners of servitization. The original equipment manufacturers (OEMs) of photocopiers, such as Xerox, pioneered the implementation of servitized business models and, over time, have developed considerable system-integration, application-development and consulting capabilities. Today, these companies integrate print needs within total ICT solutions and compete against system integrators, consulting firms and software vendors in a large, diverse and growing document management market. This chapter provides a state of the art analysis of servitization phenomenon in the industry as well as a retrospective analysis of its evolution. The chapter ends with a discussion of managerial implications.

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Reversed servitization paths: a case analysis of two manufacturers

Cited by 79 publications

References 59 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

Service innovation in product-centric firms: a multidimensional business model perspective

Photocopier Industry: At the Forefront of Servitization

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