Resource Realignment in Servitization

When transitioning from a product-centered business model to one focusing on providing services and solutions, manufacturers must realign and reallocate resources to support the new business model. Based on a study of nine leading solution providers that have successfully transitioned from products...

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Bibliographic Details
Published in:Research technology management 2016-07, Vol.59 (4), p.30-39
Main Authors: Huikkola, Tuomas, Kohtamäki, Marko, Rabetino, Rodrigo
Format: Article
Language:English
Subjects:
Brand loyalty
Business models
Case studies
Customer services
FEATURES
Manufacturers
Manufacturing
Organizational change
Researchers
Studies
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Summary:When transitioning from a product-centered business model to one focusing on providing services and solutions, manufacturers must realign and reallocate resources to support the new business model. Based on a study of nine leading solution providers that have successfully transitioned from products to services, we demonstrate how manufacturers create new resources and organizational structures to facilitate co-creation of value with customers, leverage existing resources to develop new service products and markets, and systematically release non-core upstream resources to nurture downstream resources.
ISSN:0895-6308
1930-0166
DOI:10.1080/08956308.2016.1185341