PURCHASING CLOUD-BASED PRODUCT-SERVICE BUNDLES IN VALUE NETWORKS - THE ROLE OF MANAGEABLE WORKLOADS

The implementation of electronic procurement processes for product-service systems, consisting of material and service components requires a consideration of strategic, tactical and operational issues in procurement processes and information technologies. Increasingly, in certain industries, these product-service systems consist more and more of cloud-based components like online storage or web applications. In the past, the alignment of business processes with a focus on traditional procurement processes for products or services has been well established. But with the rise of product-service systems as core offering from companies, the design of hybrid procurement processes in value networks has to be developed. The merging of different procurement processes for products and services, however, has severe problems and does not reflect the specific requirements in the procurement of product-service systems, especially with cloud-based components. This article highlights the need for a process-oriented view in procurement at multiple levels of abstraction and describes a model for the design of electronic procurement process in value networks for cloud-based product-service systems requirements. Different process characteristics are examined for applicability to hybrid value performance and allow an adjustment proposal for the hybrid procurement process. The proposed procurement model is validated in a typical case-study in the IT industry

PURCHASING PRODUCT-SERVICE BUNDLES IN VALUE NETWORKS - EXPLORING THE ROLE OF SCOR

The implementation of electronic procurement processes for product-service bundles, consisting of product- and service components requires a consideration of strategic, tactical and operational procurement and information and communication technologies in value networks. In the past, the scientific discussion oriented on traditional procurement processes for products and technology-solutions. Increasingly, the design of hybrid procurement processes in value networks is of scientific interest. The combination of different procurement processes for products and services, however, includes problems. This paper shows the need for a process-oriented approach in procurement at several abstraction levels. We describe a model for the design of the electronic procurement process in value networks to serve product-service bundles. Different process characteristics are investigated for the applicability of product-service bundles and SCOR. We adjust a proposal for the procurement process in value networks

Recommender Systems for Strategic Procurement in Value Networks

The implementation of recommender systems in electronic procurement processes for service packages, consisting of product- and service components requires a consideration of strategic, tactical and operational procurement as well as information and communication technologies in value networks. Increasingly, the design of recommender systems for procurement processes in value networks is of scientific interest. The combination of different procurement processes for products and services driven by recommender systems however, includes problems. This paper shows the need for a process-oriented approach in procurement at several abstraction levels. A model for the design of the electronic procurement process in value networks to serve the identification of complex service packages and suppliers with recommender systems is described. Different process characteristics are investigated for the applicability of recommender systems in e-procurement. As an artifact this approach adjust a proposal for the recommender system-based procurement process in value networks

Towards conceptualizing reverse service supply chains

Purpose – Recognizing the heterogeneity of services, this paper aims to clarify the characteristics of forward and the corresponding reverse supply chains of different services. Design/methodology/approach – The paper develops a two-dimensional typology matrix, representing four main clusters of services according to the degree of input standardization and the degree of output tangibility. Based on this matrix, this paper develops a typology and parsimonious conceptual models illustrating the characteristics of forward and the corresponding reverse supply chains of each cluster of services. Findings – The four main clusters of service supply chains have different characteristics. This provides the basis for the identification, presentation and explanation of the different characteristics of their corresponding reverse service supply chains. Research limitations/implications – The findings of this research can help future researchers to analyse, map and model forward and reverse service supply chains, and to identify potential research gaps in the area. Practical/implications – The findings of the research can help managers of service firms to gain better visibility of their forward and reverse supply chains, and refine their business models to help extend their reverse/closed-loop activities. Furthermore, the findings can help managers to better optimize their service operations to reduce service gaps and potentially secure new value-adding opportunities. Originality/value – This paper is the first, to the authors ' knowledge, to conceptualize the basic structure of the forward and reverse service supply chains while dealing with the high level of heterogeneity of services

Characteristics of Value Bundles in RFID-Enabled Supply Networks

In order to avoid ruinous price competition, companies are intensely seeking new ways to stand out from competitors in a global market scenario. In response to this aim, value bundles provide an approach to grade up existing offerings from isolated goods and services to integrated problem solutions for specific customer needs. This differentiation strategy relies on supply networks as an essential enabler. However, the effect of RFID as a major innovation in supply chain networks on their ability to enable value bundles is widely unexplored. In this paper we use the morphological method to identify typical characteristics of value bundles in RFID-enabled supply networks. The outcome is a set of characteristics which allows for categorization and, based on this, structured comparison of any respective value bundles. The categorization is illustrated and validated with three case studies

Sustainable Value Proposition Design in a Product-Service System

Many companies have started to add services to their tangible products in order to defend themselves from increased competition from low-cost economies. Research regarding the transition towards product-service systems (PSS) and how the PSS providers' business models are affected exists, but there is a lack of research regarding how the suppliers to the PSS providers are affected by the transition towards PSS. Therefore, this thesis studies the situation for a supplier/partner to an OEM that has changed their business model to a PSS providing one. As the first step in a development of a new business model aims this thesis to provide guidelines for how to set up value propositions suitable for a supplier/partner in this new environment. When technologically complex products, such as aircraft engines, are provided through PSS offerings it is hard to translate customer needs into quality parameters, which makes it hard to sustain the value to customer over time. Therefore, how to keep the value offering sustainable over time is also investigated in this thesis. The aim of this study was to investigate how a sustainable value proposition can be designed for a product and technology supplier/partner to an OEM that offers PSS solutions. The research has been performed through studying relevant literature and collecting empirical data from a case company through semi-structured interviews and a workshop. The case company in this research is Volvo Aero Corporation (VAC). The empirical findings show that VAC wants to offer product-service bundled solution, which fit the whole spectra of PSS value propositions, to their partners/customers. To be able to deliver these different types of product-service bundled solutions different value propositions that suit the different kinds of PSS offerings are needed. Requirements that must be fulfilled to be able to offer and deliver the different types of value propositions exist in terms of securing sufficient information access, aligning the incentives of all actors involved and achieving an internal consensus of what is delivered

Blockchain Technology Based Supply Chain Systems and Supply Chain Performance: A Resource-Based View

Blockchain technology (BCT) is set to transform firms’ present ways of managing supply chains. This thesis explores how the efforts by firms to integrate BCT into their supply chain systems and activities, can enable certain supply chain capabilities and subsequently, improve supply chain performance. Using an abductive research approach, qualitative content analyses of 126 cases of firms’ efforts in BCT-based supply chain systems (BCT-SCS) across multiple industries are conducted to identify the BCT-enabled supply chain capabilities and their performance outcomes. Findings reveal that the present BCT-SCS efforts are mainly oriented towards improving the operational-level capabilities namely, information sharing and coordination capabilities rather than strategic-level capabilities namely, integration and collaboration capabilities. The predominant performance outcomes resulting from these capabilities along with the BCT-SCS are quality compliance and improvement, process improvement, flexibility, reduced cost, and reduced process time. However, the performance outcomes vary with industry type, based on the risks that the industry faces. Based on the study’s findings, an integrated framework of research propositions is presented to facilitate future empirical research

Can Better Working Conditions Improve the Performance of SMEs? An International Literature Review

[Excerpt] It is widely recognized that competitive private enterprise is the principal source of economic growth and wealth globally and makes a substantial contribution to poverty reduction. Although large and multinational enterprises have the higher public profile, the majority of businesses are small and medium-sized enterprises (SMEs). They are estimated to be responsible for over 50 per cent of the new jobs created globally and, in most developing and emerging countries, they also employ more people than do large enterprises. Given their importance as employers, SMEs clearly have the potential to contribute to the social and economic progress for workers and their communities. However, many SMEs – particularly those in developing and emerging countries – are not achieving this potential. Frequently, their employment is in low-quality and low-skilled jobs that offer low wages under poor and unsafe working conditions. In addition, SMEs often fall short in terms of productivity, competitiveness and market share. The ILO has long been convinced that, by improving working conditions, safety and skills in SMES, productivity and profitability can also be improved: a win-win scenario that is good for workers, enterprise owner, communities and economies. In June 2012, specialists from four ILO departments came together to implement a joint programme of work to explore how to help and encourage SMEs to achieve this. This independent research review was commissioned by ILO in order to contribute to establishing a solid empirical basis for future research and interventions. It reviews the empirical relevance of the assumption that a win-win scenario exists in SMEs, especially in the context of developing economies. It also seeks to identify the factors or conditions that influence its emergence. More broadly, the report builds upon a thorough review of international literature to present responses to a range of enquiries relating to the links between working conditions, safety and health, skills and productivity. Not surprisingly, the answers contained in this report are often conditional and are far from categorical. Although the report suggests that a win−win scenario may exist, in certain circumstances, it also underlines that more empirical research is needed, particularly in developing and emerging economies

Domestic market potential for tree products from farms and rural communities: Experience from Cameroon

This publication summarizes the results of research carried out by NRI in Cameroon during 1995-96 on the domestic market potential for tree products from farms and rural communities. The study arose from concern that agroforestry projects, which generally aim to reduce the pressure on natural forests by planting trees on farmland, were inadequately addressing the associated marketing needs. As a consequence, many of the projects were failing. The research reported here sought to characterize the markets for non-timber tree products (NTTPs) and highlight constraints to the development of markets for traditional and emerging NTTPs. The research in Cameroon was paralleled by a study in the Brazilian Amazon carried out by IFPRI; ODA provided funding for both studies. The work began with an inventory of products and subsequent identification of marketing chains. Four products were selected as case studies and were used to explore issues relating to valued added, domestication and the role of NTTPs as sources of income. The marketing of the four products was well-established and appeared to be relatively competitive, in spite of some concerns over lack of information at farmer level. There was growing demand for the products, apparently matched by increasing supply. The wholesalers, who source the products in the forest fringe communities and sell them on to retailers, were the most dynamic links in the marketing chains. The impetus to domesticate NTTPs seemed always to be farmer-driven, and occurred when a product important for subsistence and income needs was not readily available from the forest. However, the role of NTTPs within the farming system is important; they must fit into a complex strategy which includes seasonal smoothing of income, production and labour needs. Also, tree-planting is a long-term investment which is unlikely to be undertaken if land tenure is insecure. In conclusion, areas are highlighted for future research. These include: technical aspects of cultivation, processing and storage; identification of products which will be in greater demand as a result of urbanization; the role of NTTPs in the livelihood strategies of particularly vulnerable groups (including the landless) in the forest fringe communities

Business Ecosystem and Stakeholders’ Role Transformation: Evidence from China’s Emerging Electric Vehicle Industry

Nurturing an emerging industry’s business ecosystem always requires stakeholders’ efforts and role transformation. By systematically reviewing and studying the evolution of the Chinese electric vehicle industry, this paper constructs a three-dimensional theoretical framework including stages of business ecosystem lifecycle, stakeholder classification and functional roles, to analyse the transformation both of different stakeholders and their functional roles. The findings show that business ecosystem stakeholders have experienced role transformation following a mechanism defined as the ‘Triple Oscillation’ Model during the evolution of the emerging industry. These findings also help develop a conceptual model of agent-based system for business ecosystem evolution, which could be a starting point for further emerging industry study