Servitization as reinforcement, not transformation

2017 ◽  
Vol 28 (4) ◽  
pp. 662-686 ◽  
Author(s):  
Anna Salonen ◽  
Onur Saglam ◽  
Fredrik Hacklin

Purpose The purpose of this paper is to explain why product-centric manufacturers utilize advanced services not as vehicles of transformation, but of reinforcement, to strengthen their established business model logic based on selling products and basic product-related services. Design/methodology/approach The empirical basis of this study relies on an in-depth case study of a globally operating manufacturer of industrial pumps and related services. The data includes 31 interviews conducted over several years of in-depth collaboration with the studied firm. Findings Product-centric manufacturers utilize advanced services as engagement platforms to facilitate the external and internal engagement of the actors and the resources controlled by them. Externally, advanced services facilitate access to customer decision makers and insights into their latent needs. Internally, advanced services help the manufacturer to more effectively leverage resources that reside within its different organizational units. Ultimately, in leveraging advanced services as engagement platforms, the manufacturer seeks to boost activities with the greatest immediate impact on its market performance: the sale of products and basic product-related services. Practical implications The study explains why managers should invest into development of advanced services even if such services contribute only marginally to the manufacturer’s direct revenues and profits. Originality/value This study contributes to development of an alternative explanation of servitization that departs from the current paradigmatic assumptions in the field.

2017 ◽  
Vol 31 (2) ◽  
pp. 192-206 ◽  
Author(s):  
Christina Holm-Petersen ◽  
Sussanne Østergaard ◽  
Per Bo Noergaard Andersen

Purpose Centralization, mergers and cost reductions have generally led to increasing levels of span of control (SOC), and thus potentially to lower leadership capacity. The purpose of this paper is to explore how a large SOC impacts hospital staff and their leaders. Design/methodology/approach The study is based on a qualitative explorative case study of three large inpatient wards. Findings The study finds that the nursing staff and their frontline leaders experience challenges in regard to visibility and role of the leader, e.g., in creating overview, coordination, setting-up clear goals, following up and being in touch. However, large wards also provide flexibility and development possibilities. Practical implications The authors discuss the implications of these findings for decision makers in deciding future SOC and for future SOC research. Originality/value Only few studies have qualitatively explored the consequences of large SOC in hospitals.


2015 ◽  
Vol 43 (3) ◽  
pp. 7-14 ◽  
Author(s):  
Jim Moffatt

Purpose – This case example looks at how Deloitte Consulting applies the Three Rules synthesized by Michael Raynor and Mumtaz Ahmed based on their large-scale research project that identified patterns in the way exceptional companies think. Design/methodology/approach – The Three Rules concept is a key piece of Deloitte Consulting’s thought leadership program. So how are the three rules helping the organization perform? Now that research has shown how exceptional companies think, CEO Jim Moffatt could address the question, “Does Deloitte think like an exceptional company?” Findings – Deloitte has had success with an approach that promotes a bias towards non-price value over price and revenue over costs. Practical implications – It’s critical that all decision makers in an organization understand how decisions that are consistent with the three rules have contributed to past success as well as how they can apply the rules to difficult challenges they face today. Originality/value – This is the first case study written from a CEO’s perspective that looks at how the Three Rules approach of Michael Raynor and Mumtaz Ahmed can foster a firm’s growth and exceptional performance.


2019 ◽  
Vol 23 (6) ◽  
pp. 1077-1104 ◽  
Author(s):  
Davide Aloini ◽  
Riccardo Dulmin ◽  
Valeria Mininno ◽  
Pierluigi Zerbino

Purpose This paper aims to model a decision support system (DSS) that could overcome the oversimplified, subjective, compensatory decision logic of extant purchasing portfolio models (PPMs) by leveraging the firms’ procurement-related knowledge base. Design/methodology/approach The DSS was developed through a fuzzy-based approach, whose design and application were framed within a case study in a multinational company. Findings The application of the fuzzy-based DSS to a product class suggests investing in the relationship with two specific suppliers and to loosen the relationship with a third one. Research limitations/implications Exploiting the fuzzy set theory and fostering the elicitation of procurement-related knowledge from the decision-makers, the DSS effectively tackles the concerns about the existing PPMs by including strategic-oriented priorities and contextual constraints in the evaluation. Practical implications The recommendations in output from the DSS are feasible, more analytical and easy to interpret, enabling knowledge sharing, group decision processes and better decision-making. Originality/value To the best of the authors’ knowledge, this manuscript is the first attempt to effectively integrate traditional PPMs with contextual, strategy-related factors to refine the purchasing directions and make them objective.


2014 ◽  
Vol 30 (7) ◽  
pp. 42-45 ◽  
Author(s):  
Pei-Yuh Huang ◽  
Shigeru Kobayashi ◽  
Kazuhito Isomura

Purpose – The purpose of this paper is to clarify how a competitive company develops its own method to create innovation by utilizing imitation and learning. Design/methodology/approach – The paper examines the case of Fast Retailing from the viewpoint of imitation strategy. Findings – Fast Retailing constantly explores and imports business ideas, evolves its business model through trial and error and finally creates innovation. Practical implications – The paper emphasizes the importance of imitation strategy that flexibly accepts and extends business ideas through learning, creates new values by evolving a business model and combines them with corporate identity and brand. Originality/value – The case study of Fast Retailing suggests that the successful imitation is enabled by flexible corporate culture and redefining its corporate identity and brand through the process of evolving its business model.


2015 ◽  
Vol 43 (2) ◽  
pp. 104-109
Author(s):  
Ylva Gavel

Purpose – The purpose of this paper is to describe how systems automating the local document supply process (such as integrated library systems and ILL management systems) can be integrated with systems automating regional document requesting (interlending). This is illustrated with a case study of DocFlow, an ILL management system developed in-house at Karolinska Institutet and its integration with Libris, the national interlending system in Sweden. Design/methodology/approach – The present paper describes how system integration between Libris and DocFlow was accomplished in practice. It also discusses various aspects of integration between systems offering automation of document supply. Findings – Integration between local document supply workflows and regional document request flows may involve techniques such as import of outgoing and incoming interlending requests, synchronization of status values between systems, exchange of messages between systems and quick links to the native interfaces of external systems. Practical implications – The paper brings up various aspects to consider when developing or procuring a system for the local management of ILL workflows. Originality/value – The paper may provide a deeper understanding of system integration, as it applies to the document supply process.


2018 ◽  
Vol 11 (2) ◽  
pp. 90-106
Author(s):  
Radhika Pandey ◽  
Amey Sapre ◽  
Pramod Sinha

Purpose This paper aims to discuss the changes in the new 2011-12 base year series of the Index of Industrial Production (IIP) to determine whether the new series has improved the understanding of the growth in the manufacturing sector. Design/methodology/approach This paper develops a simple framework to separately estimate the contribution of value- and volume-based commodities in the growth of the manufacturing index. The authors present a case study by analysing the growth performance of IIP drugs and pharmaceuticals sector by comparing it with real net sales of a common sample of firms in this segment. Findings The authors find that growth in value-based commodities contributes significantly in moving the index in either direction, and that high growth in value-based commodities coincides with periods of low inflation. On comparability, using real net sales as an alternate indicator of industrial output for the pharmaceuticals sector, the authors find that IIP and real net sales show contrasting trends, thereby raising issues of reliability. The authors also find that the IIP shows a disconnect with growth rates from Annual Survey of Industries for several industries. Practical implications The divergence between two measures of industrial activity raises crucial questions on the representativeness of the IIP. Originality/value The study builds a framework to separately estimate the contribution of value- and volume-based commodities in the growth of the manufacturing index.


2018 ◽  
Vol 120 (1) ◽  
pp. 133-145 ◽  
Author(s):  
Inari Aaltojärvi ◽  
Maija Kontukoski ◽  
Anu Hopia

Purpose The purpose of this paper is to analyse how Finnish customers at the pop-up restaurant event Trip to Province, which took place in South Ostrobothnia, Finland, make sense of the locality. Design/methodology/approach The data consist of 3 group interviews and 18 respondents, whose responses were analysed using a frame analysis. Findings Locality is discussed in the context of three frames: the immediate surroundings, the Finnish national ethos and the global discourses of food enthusiasts. The results show that, in terms of local food events, locality comprises not only food, but also place, people and cultural context conveying national and global elements. Research limitations/implications The data of this study are limited in size, and limited to the Finnish context. Practical implications Local food events could be promoted to locals and nearby residents, not just to tourists. With the design of the eating environment (music and visuals), the local food experience can be enhanced. Social implications Local food events strengthen the residents’ regional identity. Originality/value The research setting for this paper is original; the study takes part in the scarce discussion about gastronomic tourism in Finland. The study broadens the view that local food is just about food; regarding local food events, locality also entails place, people, nationality and globality.


2019 ◽  
Vol 30 (1) ◽  
pp. 117-139 ◽  
Author(s):  
Clinton Amos ◽  
Sebastian Brockhaus ◽  
Amydee M. Fawcett ◽  
Stanley E. Fawcett ◽  
A. Michael Knemeyer

PurposeThe purpose of this paper is to evaluate how service perceptions influence customer views of the authenticity of corporate sustainability claims. The goal of this paper is to help supply chain decision-makers better understand boundary conditions in order to design more enduring and impactful sustainability programs.Design/methodology/approachThe authors employ behavioral experiments, subjecting two theoretically derived hypotheses to verification across five diverse industries and two distinct sustainability vignettes.FindingsCustomer service perceptions emerge as a significant boundary condition to the perceived authenticity of sustainability efforts. Subjects attributed significantly higher authenticity toward sustainability efforts in above average vs below average service quality contexts. Further, respondents attributed deceptive motivations to sustainability efforts at companies with below average service.Research limitations/implicationsThe authors confirm the underlying tenet of social judgment theory, which suggests thata prioriperceptions create a zone of acceptability or rejection. Ultimately, investing in sustainability can lead to counterproductive cynicism.Practical implicationsThe authors infer that customers’ willingness to give companies credit for sustainability initiatives extends beyond service issues to any practice that influencesa prioriperceptions. Supply chain managers must rethink their role in designing both customer service and sustainability systems to achieve positive returns from sustainability investments.Originality/valueThe authors challenge the assumption that customers universally positively view sustainability efforts. If customers holda priorinegative service perceptions, otherwise well-designed sustainability programs may invoke cynical reactions. Thus, sustainability programs may not inoculate firm reputations from adverse incidents. Given they touch both service and sustainability systems, supply chain managers are positioned to holistically influence their design for competitive advantage.


2018 ◽  
Vol 46 (4) ◽  
pp. 21-27 ◽  
Author(s):  
Vladyslav Biloshapka ◽  
Oleksiy Osiyevskyy

Purpose Defines clear steps for growth planning that support answers to the crucial question: How and where are you planning to scale up the business and what talent do you need to implement this? Design/methodology/approach As the “Business model value matrix” shows, having ‘happy customers’ is only one determinant of a business model’s success. The other essential block of diagnostic questions deals with the current state and prospects of the firm’s growth. Findings We found that companies that have found ways to keep their business models in a winner’s state can provide clear, evidence-based answers to questions about growth opportunities and risks, while their less successful peers have difficulty addressing the issues. Continuous collecting and analyzing of this information allows successful companies to embrace the strategy-as-learning model of development, built around active learning and proactive adjustment to evolving environment. Practical implications To develop a strategy for moving to and sustaining the Winner state, managers must clearly articulate and test a set of hypotheses about the mechanisms of their company’s growth. The first step on this path is related to obtaining a clear view on the factors that underpin the current financial performance. Originality/value High-performance cultures make sure that each manager has the clear answers to the questions of value, growth and digitization in order to learn, experiment and implement the company business model agenda. The unproductive cultures, on the other hand, are sustained by managerial teams that usually do not have the answers to these crucial questions, but are very good at political games.


2018 ◽  
Vol 41 (3) ◽  
pp. 278-295 ◽  
Author(s):  
Stefania Mariano

Purpose The purpose of this study is to investigate how organizational knowledge interacts with artifacts and what determinants, driving processes and outcomes govern these interactions in organizational contexts. Design/methodology/approach A case study is used and data collected is from a US engineering and consulting company. Findings Findings suggested three major driving processes specifically initiating, challenging and improving and several related determinants and outcomes that governed the interaction between organizational knowledge and artifacts over time. Research limitations/implications This study has limitations related to the nature and dimension of the case selected. Practical implications This study provides a means to explain how organizations hold existing knowledge and what determinants, driving processes and outcomes govern the interactions between knowledge and artifacts to assist managerial practices and improve performance. Originality/value This paper contributes to the current debate on organizational knowledge and provides some empirical evidence of how knowledge interacts with artifacts in organizational contexts.


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