Value and servitization; Creating complex deployed responsive services

Parry, Glenn; Tasker, Paul

Abstract

This paper presents a value framework which captures how manufacturing engineering firms are transforming from product to complex service provision where the service is delivered within the customer’s dynamic environment and their ability to capture worth is determined by the success of their customer.
Key points:
1. A value framework presents the business models for service transformation which requires managers to consider and capture their value proposition, value realisation and worth capture processes
2. A characterisation of a particular form of service, named complex deployed responsive services [CDRS]
3. CDRS are delivered in partnership with customers, realised off-site and in the customer’s environment and must be responsive to their demands such that their success determines the success of the provider.
4. Application of the value framework to a number of business-to-business CDRS has demonstrated its utility in identification and understanding of opportunities for worth capture
5. The proposed framework helps firms consider how to avoid value slippage, which is the process where the value creator is unable to capture the worth from their effort.

Citation

Parry, G., & Tasker, P. (2014). Value and servitization; Creating complex deployed responsive services. Strategic Change, 23(5-6), 303-315. https://doi.org/10.1002/jsc.1978

• Journal Article Type: Article
• Publication Date: Aug 19, 2014
• Journal: Strategic Change: Briefings in Entrepreneurial Finance
• Print ISSN: 1099-1697
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 23
• Issue: 5-6
• Pages: 303-315
• DOI: https://doi.org/10.1002/jsc.1978
• Keywords: servitization, organisational change, value, business model, complex deployed responsive service
• Publisher URL: http://dx.doi.org/10.1002/jsc.1978
• Related Public URLs: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-1697
• Additional Information: Additional Information : First published online 19 August 2014 This is the pre-peer reviewed version of the following article: Parry, G. and Tasker, P. (2014) Value and servitization; Creating complex deployed responsive services. Strategic Change: Briefings in Entrepreneurial Finance, 23 (5-6). pp. 303-315. ISSN 1099-1697, which has been published in final form at http://dx.doi.org/10.1002/jsc.1978