Solution business models: Transformation along four continua

Storbacka, Kaj; Windahl, Charlotta; Nenonen, Suvi; Salonen, Anna

doi:10.1016/j.indmarman.2013.05.008

Cited by 151 publications

(167 citation statements)

References 64 publications

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“…The third principle-evaluate the articulated assumption-was addressed by a synthesizing research process (similar to that performed by Kindström and Kowalkowski (2014) and Storbacka et al (2013)). We drew on data collected from five research projects conducted during the period 2001 to 2012, which we merged into emerging themes, structured by a focus on service-led growth strategies.…”

Section: Methodsmentioning

confidence: 99%

“…The transition from a transactional to a relational nature of the customer-provider relationship encourages a gradual implementation of increasingly proactive, flexible, customized, and long-term relationships with customers and partners (Brax & Jonsson, 2008;Matthyssens & Vandenbempt, 2010). The transition from product to process-oriented offerings highlights the need to gradually move towards more complex offerings, add service components, and change the earning logic from discrete to continuous cash flows (Raddats & Easingwood, 2010;Ulaga & Reinartz, 2011;Storbacka et al, 2013). With a more complex and extensive offering, the coordination costs and operational risks typically increase (Nordin et al, 2011), but if the firm can manage these factors, there is an economic incentive to extend the total offering.…”

Section: From Products To Solutions: the Underlying 'Service Transitimentioning

confidence: 99%

“…A high level of business process integration on the opex side enables activities along the availability trajectory, whereas substantial technical integration on the capex side enables activities along the performance trajectory. In order to adapt a fully-fledged performance role (and/or availability role), a key organizational challenge for many of these firms is related to managing capex/opex integration (Storbacka et al, 2013). Furthermore, digitalization serves as a catalyst for all three trajectories and roles.…”

Section: Implications For Theory and Practicementioning

confidence: 99%

“…Although most studies adopt the transition process as an underlying theoretical assumption, it seems that few firms actually make a complete downstream transition in practice (Storbacka et al, 2013). Kowalkowski et al (2012) point out that service-led growth and expansion is multifaceted and does not necessarily imply a unidirectional development towards the provision of more extensive services.…”

Section: Introductionmentioning

confidence: 99%

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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: Methodsmentioning

confidence: 99%

Section: From Products To Solutions: the Underlying 'Service Transitimentioning

confidence: 99%

Section: Implications For Theory and Practicementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

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

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show abstract

“…By a PSS we mean a longitudinal relational process among multiple actors, including customers, within a value network during which they provide bundles of goods and services as an integrated solution, aimed at meeting individual customer's needs (Grӧnroos, 2011;Hakanen, 2014;Oliva and Kallenberg, 2003;Storbacka et al, 2013). Since IT is regarded as a technological foundation for the operations of such networks, it is essential to align IT with the business strategy and the operations of the PSS value network.…”

Section: Introductionmentioning

confidence: 99%

Business-IT Alignment in PSS Value Networks - Linking Customer Knowledge Management to Social Customer Relationship Management

Bagheri

Kusters

Trienekens

2015

Proceedings of the 17th International Conference on Enterprise Information Systems

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Abstract:Offering a PSS that is based on co-creating value with customer, starts with understanding customer needs. Customer understanding is realized through the process of managing customer knowledge across a PSS value network. In this respect, customer knowledge management (CKM) is seen as a core business capability. We extend the notion of CKM capability to a PSS value network, defining it as a value network CKM (VN-CKM) capability. We also look at the supportive IT capability, which we define as the value network social customer relationship management (VN-SCRM) capability. At operational level VN-CKM and VN-SCRM capabilities are reflected in the execution of business processes and information systems. To achieve BIA, a linkage is required between the VN-CKM capability and the VN-SCRM capability and between its accompanying business processes and systems. If in the process of VN-CKM, activities such as creation, storage/retrieve, transfer, and usage of customer knowledge are enabled by VN-SCRM systems across a network, the established BIA will support the functioning of the PSS. In this study we discuss the role of a VN-SCRM capability and identify requirement components of accompanying systems in relation to a VN-CKM capability and accompanying processes, in order to foster BIA at a network level.

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Matching value propositions with varied customer needs: The role of service modularity

Heikka

Frandsen

Hsuan

2018

Knowl Process Manag

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Organizations seek to manage varied customer segments using varied value propositions. The ability of a knowledge‐intensive business service (KIBS) provider to formulate value propositions into attractive offerings to varied customers becomes a competitive advantage. In this specific business based on often highly abstract service offerings, this requires the provider to have a clear overview of its knowledge and resources and how these can be configured to obtain the desired customization of services. Hence, the purpose of this paper is to investigate how a KIBS provider can match value propositions with varied customer needs utilizing service modularity. To accomplish this purpose, a qualitative multiple case study is organized around 5 projects allowing within‐case and cross‐case comparisons. Our findings describe how through the configuration of knowledge and resources a sustainable competitive advantage is created through creating the right kind of value propositions for varied customers with the help of modularity. Understanding gained through this research helps KIBS organizations in their efforts to increase organizational effectiveness through modular services.

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Solution business models: Transformation along four continua

Cited by 151 publications

References 64 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

Business-IT Alignment in PSS Value Networks - Linking Customer Knowledge Management to Social Customer Relationship Management

Matching value propositions with varied customer needs: The role of service modularity

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