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Servitization of the manufacturing firm Exploring the operations practices and technologies that deliver advanced services

Servitization of the manufacturing firm Exploring the operations practices and technologies that... Purpose – This paper aims to explore practices and technologies successfully servitised manufacturers employ in the delivery of advanced services. Design/methodology/approach – A case study methodology is applied across four manufacturing organisations successful in servitization. Through interviews with personnel across host manufacturers, their partners, and key customers, extensive data are collected about service delivery systems. Analyses identify convergence in their practices and technologies. Findings – Six distinct technologies and practices are revealed: facilities and their location, micro‐vertical integration and supplier relationships, information and communication technologies (ICTs), performance measurement and value demonstration, people deployment and their skills, and business processes and customer relationships. These are then combined in an integrative framework that illustrates how operations are configured to successfully deliver advanced services. Research limitations/implications – The analyses are reductive and rationalising. Future studies could identify other technologies and practices. Case study as a method is inherently limited in the extent to which findings can be generalised. Practical implications – Awareness and interest in servitization is growing, yet adoption of a servitization strategy requires particular organisational capabilities on the part of the manufacturer. This study identifies technologies and practices that underpin these capabilities. Originality/value – This paper contributes to the understanding of the servitization process and, in particular, the implications to broader operations of the firm. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Operations & Production Management Emerald Publishing

Servitization of the manufacturing firm Exploring the operations practices and technologies that deliver advanced services

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Publisher
Emerald Publishing
Copyright
Copyright © 2014 Emerald Group Publishing Limited. All rights reserved.
ISSN
0144-3577
DOI
10.1108/IJOPM-02-2012-0086
Publisher site
See Article on Publisher Site

Abstract

Purpose – This paper aims to explore practices and technologies successfully servitised manufacturers employ in the delivery of advanced services. Design/methodology/approach – A case study methodology is applied across four manufacturing organisations successful in servitization. Through interviews with personnel across host manufacturers, their partners, and key customers, extensive data are collected about service delivery systems. Analyses identify convergence in their practices and technologies. Findings – Six distinct technologies and practices are revealed: facilities and their location, micro‐vertical integration and supplier relationships, information and communication technologies (ICTs), performance measurement and value demonstration, people deployment and their skills, and business processes and customer relationships. These are then combined in an integrative framework that illustrates how operations are configured to successfully deliver advanced services. Research limitations/implications – The analyses are reductive and rationalising. Future studies could identify other technologies and practices. Case study as a method is inherently limited in the extent to which findings can be generalised. Practical implications – Awareness and interest in servitization is growing, yet adoption of a servitization strategy requires particular organisational capabilities on the part of the manufacturer. This study identifies technologies and practices that underpin these capabilities. Originality/value – This paper contributes to the understanding of the servitization process and, in particular, the implications to broader operations of the firm.

Journal

International Journal of Operations & Production ManagementEmerald Publishing

Published: Dec 20, 2013

Keywords: Case study; Servitization; Product‐service systems; Operations; Service delivery systems

References