What's in it for the Provider? The Case of a Telecom Vendor's Value Capturing from the Transition to Product-Service Systems

AbstractIn adopting highly integrated Product-Service Systems (PSS), incentive structures change and the value attainable for providers throughout the lifecycle becomes an issue of growing complexity. Nonetheless, value for PSS providers has up to now not been considered in a multidimensional fashion. In an effort to move towards a characterization of provider's value, an offering in the information communication technology sector was examined through an investigation with ten staff-members of Ericsson, Sweden. This led to a value-categorization, which can be utilized in the PSS design process to enhance the value captured throughout the lifecycle beyond immediate monetary benefit. In an effort to provide general learnings, the results are discussed with a focus on PSS business models, PSS design and management communication. Overall, the results presented provide a more comprehensive picture of what a provider has to gain from a PSS offering throughout its entire lifecycle

Ericsson – The History from Product to Solution Provider and Challenges and Opportunities in an Evolving Environment

An increasing number of Original Equipment Manufacturers (OEM) are realizing that their products, earlier the foundation of their success, no longer stand alone in satisfying customer requirements. Customers now demand integration of services and bundling as well as increased active participation of OEMs during the use phase. Ericsson, a Swedish multinational OEM of communications technology and services, is an example of such a company. The objective of this paper is to describe, compare and discuss Ericsson's journey from a product provider to a PSS provider, e.g. by comparison with other industry examples. Furthermore, the paper highlights future challenges and opportunities for instance regarding business models, trends and product design

Ericsson – The History from Product to Solution Provider and Challenges and Opportunities in an Evolving Environment

An increasing number of Original Equipment Manufacturers (OEM) are realizing that their products, earlier the foundation of their success, no longer stand alone in satisfying customer requirements. Customers now demand integration of services and bundling as well as increased active participation of OEMs during the use phase. Ericsson, a Swedish multinational OEM of communications technology and services, is an example of such a company. The objective of this paper is to describe, compare and discuss Ericsson's journey from a product provider to a PSS provider, e.g. by comparison with other industry examples. Furthermore, the paper highlights future challenges and opportunities for instance regarding business models, trends and product design