Framing the Servitization Transformation Process: A Model to Understand and Facilitate the Servitization Journey

Research output: Contribution to journalArticle

Abstract

The concept of servitization is well established in the literature, and yet the processes of organisational change that manufacturers undergo to compete through services have received much less attention. Therefore, this paper develops a model that enables a description of the servitization processes, the principal stages of organisational change, and the forces impacting these processes. It is based on a series of 14 case studies of the process of servitization over time in multinational manufacturers. Evidence and analysis from these cases are used to establish that manufacturers undergo four stages of organisational maturity (Exploration, Engagement, Expansion and Exploitation), through which an organisation progresses according to the pressures of five principal forces (customer pull, technology push, value network positioning, organisational readiness, and organisational commitment). This progression can be characterised as a business growth model with multiple crises or tipping points. This research contributes to our understanding of the process of servitization and proposes a model which can be used to explain progression. It also forms the basis to better prepare manufacturers as to what to expect as they embark on a servitization journey.
Original languageEnglish
JournalInternational Journal of Production Economics
Early online date6 Aug 2019
DOIs
Publication statusE-pub ahead of print - 6 Aug 2019

Fingerprint

Transformation process
Service economy
Industry
Organizational change
Progression
Exploitation
Maturity
Readiness
Technology push
Organizational commitment
Value network
Business growth
Growth model
Positioning
Pull
Multinationals

Bibliographical note

© 2019, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/

Keywords

  • Advanced services
  • Organisational change
  • Process
  • Servitization
  • Transformation
  • Transition

Cite this

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title = "Framing the Servitization Transformation Process: A Model to Understand and Facilitate the Servitization Journey",
abstract = "The concept of servitization is well established in the literature, and yet the processes of organisational change that manufacturers undergo to compete through services have received much less attention. Therefore, this paper develops a model that enables a description of the servitization processes, the principal stages of organisational change, and the forces impacting these processes. It is based on a series of 14 case studies of the process of servitization over time in multinational manufacturers. Evidence and analysis from these cases are used to establish that manufacturers undergo four stages of organisational maturity (Exploration, Engagement, Expansion and Exploitation), through which an organisation progresses according to the pressures of five principal forces (customer pull, technology push, value network positioning, organisational readiness, and organisational commitment). This progression can be characterised as a business growth model with multiple crises or tipping points. This research contributes to our understanding of the process of servitization and proposes a model which can be used to explain progression. It also forms the basis to better prepare manufacturers as to what to expect as they embark on a servitization journey.",
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