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Servitization - Complex engineering service availability: Is a paradigm shift in the business model and service enterprise required?

Barnett, N.; Parry, Glenn; Saad, Mohammed; Newnes, Linda; Goh, Yee M

Authors

N. Barnett

Glenn Parry Glenn.Parry@uwe.ac.uk
Academic Associate Lecturer - BAM

Mohammed Saad Mohammed.Saad@uwe.ac.uk
Professor in Innovation & Technology Mgm

Linda Newnes

Yee M Goh



Abstract

In many sectors customers are increasingly seeking service contracts rather than buying products. High tech capital equipment firms attracted by the potential revenue benefits are choosing to move from supplying product only to supplying product and services. The academic literature suggests that business will face challenges in undertaking the transformation from product to service provision and that organisational, cultural, commercial and operational problems have the potential to erode the potential benefits. A better understanding of service business dynamics is required. A case study of a complex engineering service was undertaken. Findings identified multiple challenges associated with the transformation from product to service provision that include strategy, organisation and enterprise management, contracting, risk, culture and operations. Considering these findings holistically it is suggested that a paradigm shift may need to occur, changing both managers perspective and the business models employed to provide service.

Citation

Barnett, N., Parry, G., Saad, M., Newnes, L., & Goh, Y. M. (2013). Servitization - Complex engineering service availability: Is a paradigm shift in the business model and service enterprise required?. Strategic Change, 22(3-4), 145-156. https://doi.org/10.1002/jsc.1929

Journal Article Type Article
Publication Date May 1, 2013
Journal Strategic Change: Briefings in Entrepreneurial Finance
Print ISSN 1099-1697
Publisher Wiley
Peer Reviewed Peer Reviewed
Volume 22
Issue 3-4
Pages 145-156
DOI https://doi.org/10.1002/jsc.1929
Keywords servitization, cost, business model
Publisher URL http://dx.doi.org/10.1002/jsc.1929
Additional Information Additional Information : l.b.newnes@bath.ac.uk y.goh@lboro.ac.uk

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StrChg1 submitted.docx (62 Kb)
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