Rodrigo Rabetino, Marko Kohtamäki, Christian Kowalkowski, Tim S. Baines and Rui Sousa
Paul A. Bartlett, Denyse M. Julien and Tim S. Baines
This paper seeks to investigate the links between different types of visibility, joint initiatives and business performance using the concepts of transparency as a measure of…
Abstract
Purpose
This paper seeks to investigate the links between different types of visibility, joint initiatives and business performance using the concepts of transparency as a measure of visibility in supply chains. The prognosis that increased supply chain visibility can be achieved through suppliers and customers working on joint initiative(s), the deployment of which leads to collaborative successes, is tested.
Design/methodology/approach
Lamming et al.'s transparency concept was used as a basis for the development of a framework for assessing the visibility gaps between the focal company – Rolls‐Royce (RR) – and their suppliers. The framework was applied to a particular supplier to identify visibility gaps; subsequently a joint initiative was launched across the supply chain and the benefits measured and assessed. A case study approach was followed due to the contemporary nature of the work undertaken.
Findings
The supply chain's performance vis‐à‐vis schedule adherence was significantly improved as a result of the initiative launched. Additionally, there were improvements in visibility across capacity planning, material ordering and inventory management.
Practical implications
The study demonstrated the value of using the developed transparency framework in a structured manner to generate improvements in the supply chain. RR will look to extend its use across other supply chains; the approach could also be extended out to other sectors.
Originality/value
The development and application of the transparency frameworks in the aerospace sector are unique and have shown the value of the approach. The work has demonstrated tangibly that the exchange of high‐quality information as part of an improvement initiative does lead to significant improvements in the overall performance of the supply chain.
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Yihua Chen, Ivanka Visnjic, Vinit Parida and Zhengang Zhang
The authors seek to understand the process of digital servitization as a shift of manufacturing companies from the provision of standard products and services to smart solutions…
Abstract
Purpose
The authors seek to understand the process of digital servitization as a shift of manufacturing companies from the provision of standard products and services to smart solutions. Specifically, the authors focus on changes in the business model (i.e. the value proposition, the value delivery system and the value capture mechanism) for digital servitization.
Design/methodology/approach
The authors examine a Chinese air conditioner manufacturer, Gree, who became the global leader with their smart solutions. These solutions included performance-based contracts underpinned by artificial intelligence (AI)-powered air conditioners that automatically adjust to environmental changes and are capable of remote monitoring and servicing thanks to its Internet of things (IoT) technology.
Findings
To successfully offer smart solution value propositions, a manufacturer needs an ecosystem value delivery system composed of suppliers, distributors, partners and customers. Once the ecosystem relationships are well aligned, the manufacturer gains value with multiple value capture mechanisms (i.e. efficiency, accountability, shared customer value and novelty). To arrive at this point, a manufacturer has to pass through different stages that are characterized by both discontinuous and continuous interplay between business models and digital technologies. At the beginning of each stage, new value propositions and value delivery systems are first discontinuously created and then enabled with digital technology. As a result, new value capture mechanisms are activated. Meanwhile, the elements of the existing business model are continuously improved.
Research limitations/implications
By combining process-perspective and business-model lenses, the authors offer nuanced insights into how digital servitization unfolds.
Practical implications
Executives can obtain insights into the business model elements, they need to change over the course of digital servitization and how to manage the process.
Originality/value
A longitudinal case study of a traditional manufacturer that has achieved stellar success through digital servitization business models development.
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Tim Baines, Ali Ziaee Bigdeli, Oscar F. Bustinza, Victor Guang Shi, James Baldwin and Keith Ridgway
The purpose of this paper is to consolidate the servitization knowledge base from an organizational change perspective, identifying developed, developing and undeveloped topics to…
Abstract
Purpose
The purpose of this paper is to consolidate the servitization knowledge base from an organizational change perspective, identifying developed, developing and undeveloped topics to provide a platform that directs future research.
Design/methodology/approach
This paper addresses three objectives: it comprehensively examines organizational change management literature for selection of a theoretical framework; it classifies extant studies within the framework through a systemic literature review; and it analyses 232 selected papers and proposes a research agenda.
Findings
Analysis suggests increasing global awareness of the importance of services to manufacturers. However, some topics, especially related to servitization transformation, remain undeveloped.
Research limitations/implications
Although the authors tried to include all publications relevant to servitization, some might not have been captured. Evaluation and interpretation relied on the research team and subsequent research workshops.
Practical implications
One of the most significant challenges for practitioners of servitization is how to transform a manufacturing organization to exploit the opportunity. This paper consolidates literature regarding servitization, identifying progress concerning key research topics and contributing a platform for future research. The goal is to inform research to result eventually in a roadmap for practitioners seeking to servitize.
Originality/value
Although extant reviews of servitization identify themes that are examined well, they struggle to identify unanswered questions. This paper addresses this gap by focusing on servitization as a process of organizational change.
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Andreas Schroeder, Parikshit Naik, Ali Ziaee Bigdeli and Tim Baines
The purpose of this study is to investigate how the internet of things (IoT) contributes to manufacturers' advanced services development and delivery. To better understand the…
Abstract
Purpose
The purpose of this study is to investigate how the internet of things (IoT) contributes to manufacturers' advanced services development and delivery. To better understand the creation of these IoT contributions, the study adopts a socio-technical research perspective, which expands the scope of the investigation and integrates the technological, information and social factors that enable these IoT contributions.
Design/methodology/approach
A multiple-case research method was employed to investigate the IoT contribution scenarios of 15 manufacturers who offer advanced services and to examine their dependence on other non-IoT factors, using thematic analysis.
Findings
The analysis identified five advanced services value propositions, which are enabled by nine “IoT-enabled information systems (IS) artefacts” that specify the distinct interactions between the technological, information and social subsystems supporting the manufacturers' advanced services value propositions.
Originality/value
The study advances the servitisation research by demonstrating that IoT technology on its own is insufficient for the creation of the IoT contributions. It shows, instead, the need for close interactions with a diverse range of other factors, which are often not considered when developing an IoT strategy. The study also introduces the IS artefact notion as a unit of analysis that constitutes an alternative to the commonly adopted techno-centric perspective used to conceptualise IoT contributions. The study and its findings add to the development of a socio-technical perspective on the IoT in advanced services and thereby suggests a number of theoretical and practical implications.
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Chris Raddats, Judy Zolkiewski, Vicky Mary Story, Jamie Burton, Tim Baines and Ali Ziaee Bigdeli
The purpose of this paper is to challenge the focal firm perspective of much resource/capability research, identifying how a dyadic perspective facilitates identification of…
Abstract
Purpose
The purpose of this paper is to challenge the focal firm perspective of much resource/capability research, identifying how a dyadic perspective facilitates identification of capabilities required for servitization.
Design/methodology/approach
Exploratory study consisting of seven dyadic relationships in five sectors.
Findings
An additional dimension of capabilities should be recognised; whether they are developed independently or interactively (with another actor). The following examples of interactively developed capabilities are identified: knowledge development, where partners interactively communicate to understand capabilities; service enablement, manufacturers work with suppliers and customers to support delivery of new services; service development, partners interact to optimise performance of existing services; risk management, customers work with manufacturers to manage risks of product acquisition/operation. Six propositions were developed to articulate these findings.
Research limitations/implications
Interactively developed capabilities are created when two or more actors interact to create value. Interactively developed capabilities do not just reside within one firm and, therefore, cannot be a source of competitive advantage for one firm alone. Many of the capabilities required for servitization are interactive, yet have received little research attention. The study does not provide an exhaustive list of interactively developed capabilities, but demonstrates their existence in manufacturer/supplier and manufacturer/customer dyads.
Practical implications
Manufacturers need to understand how to develop capabilities interactively to create competitive advantage and value and identify other actors with whom these capabilities can be developed.
Originality/value
Previous research has focussed on relational capabilities within a focal firm. This study extends existing theories to include interactively developed capabilities. The paper proposes that interactivity is a key dimension of actors’ complementary capabilities.
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Koji Kimita, Tim C. McAloone, Keiji Ogata and Daniela C.A. Pigosso
This study aims to develop a systematic method called servitization maturity model to support companies in developing distinctive capabilities for successful servitization.
Abstract
Purpose
This study aims to develop a systematic method called servitization maturity model to support companies in developing distinctive capabilities for successful servitization.
Design/methodology/approach
The concept of maturity models is adopted to support companies in developing distinctive capabilities for servitization. A systematic literature review and case study approach are employed to develop the maturity model.
Findings
The findings highlight 46 capabilities classified into seven categories: strategy and leadership, performance, offerings, customers, organization, network and digital technology. Furthermore, the evolutionary path is defined by combining two types of levels, i.e. capability and maturity levels, to develop these capabilities.
Research limitations/implications
The evolutionary path was partially validated through the application, while further investigation is required to validate the evolutionary path. Therefore, future research should investigate the further validation of the evolutionary path by conducting multiple case studies.
Practical implications
The proposed maturity model enables companies to not only capture the bigger picture of the required capabilities without oversight, but also determine a process for improving the requisite capabilities with feasible efforts.
Originality/value
Existing maturity models focused on the transition from less to more advanced services. However, recent studies emphasized that companies need to determine strategies that reflect their capabilities rather than simply move toward more advanced services. Based on this assumption, this study provides successive stages that enable companies to improve their capabilities through feasible efforts.
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Ali Ziaee Bigdeli, Tim Baines, Oscar F. Bustinza and Victor Guang Shi
The need for a holistic framework for studying organisational transformation towards Servitization is implicit. This is particularly relevant as Servitization demands…
Abstract
Purpose
The need for a holistic framework for studying organisational transformation towards Servitization is implicit. This is particularly relevant as Servitization demands consideration of both business model and organisational change. The purpose of this paper is, therefore, to provide an integrative framework that systematically captures and evaluate existing literature on Servitization.
Design/methodology/approach
The aim of the paper has been achieved through three main objectives; comprehensively examine the literature in organisational change management that would assist with the selection of the most effective evaluation framework, classify previous studies against the proposed framework through a systematic literature review methodology and analyse the selected papers and propose research questions/propositions based on the identified gaps.
Findings
Results indicate that there are two somewhat macro opportunities for the Servitization community, namely, stronger infusion of generic theory into the Servitization debate and exploring Servitization in action through the lens of the theoretical framework.
Practical implications
The findings of the paper demonstrate the gaps in the Servitization literature, which indeed require further theoretical/empirical research.
Originality/value
It is discussed the usefulness and practicality of viewing research contributions that are setting out to be either “descriptive” or “prescriptive”. Consequently, the authors have proposed several avenues for future research based on these two viewpoints.
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Tim Baines and Howard W. Lightfoot
– This paper aims to explore practices and technologies successfully servitised manufacturers employ in the delivery of advanced services.
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.