Value and servitization; Creating complex deployed responsive services

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 processes2.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 capture5.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

Cutting cost in service systems: Are you running with scissors?

A rigorous link between the domains of cost estimation, systems theory and accident investigation reveals fundamental epistemological limitations of commonly employed cost models when dealing with the characteristics of systems, particularly service systems, which may hinder the ability to take appropriate action for cost reductions.Key points:1.The ability to take action, in particular related to cost reductions in service systems, is strongly influenced by the understanding (epistemological assumptions) underlying a decision-support tool, in this case a cost estimate.2.There is a conflict in the underlying epistemological assumptions about what is and can be known in such a socio-technical system as a service system.3.A managerial perspective of cost estimation which neglects the essential characteristics of service systems may drive behaviour which is locally optimised but creates tension or failure at the system level.4.Cost cutting decisions that are based on a flawed understanding of the situation can lead to counter-intuitive outcomes for organisations; hence practical guidance is needed to help managers consciously consider the underlying epistemological assumptions in a given situation

Four consecutive yearly point-prevalence studies in Wales indicate lack of improvement in sepsis care on the wards

The ‘Sepsis Six’ bundle was promoted as a deliverable tool outside of the critical care settings, but there is very little data available on the progress and change of sepsis care outside the critical care environment in the UK. Our aim was to compare the yearly prevalence, outcome and the Sepsis Six bundle compliance in patients at risk of mortality from sepsis in non-intensive care environments. Patients with a National Early Warning Score (NEWS) of 3 or above and suspected or proven infection were enrolled into four yearly 24-h point prevalence studies, carried out in fourteen hospitals across Wales from 2016 to 2019. We followed up patients to 30 days between 2016–2019 and to 90 days between 2017 and 2019. Out of the 26,947 patients screened 1651 fulfilled inclusion criteria and were recruited. The full ‘Sepsis Six’ care bundle was completed on 223 (14.0%) occasions, with no significant difference between the years. On 190 (11.5%) occasions none of the bundle elements were completed. There was no significant correlation between bundle element compliance, NEWS or year of study. One hundred and seventy (10.7%) patients were seen by critical care outreach; the ‘Sepsis Six’ bundle was completed significantly more often in this group (54/170, 32.0%) than for patients who were not reviewed by critical care outreach (168/1385, 11.6%; p < 0.0001). Overall survival to 30 days was 81.7% (1349/1651), with a mean survival time of 26.5 days (95% CI 26.1–26.9) with no difference between each year of study. 90-day survival for years 2017–2019 was 74.7% (949/1271), with no difference between the years. In multivariate regression we identified older age, heart failure, recent chemotherapy, higher frailty score and do not attempt cardiopulmonary resuscitation orders as significantly associated with increased 30-day mortality. Our data suggests that despite efforts to increase sepsis awareness within the NHS, there is poor compliance with the sepsis care bundles and no change in the high mortality over the study period. Further research is needed to determine which time-sensitive ward-based interventions can reduce mortality in patients with sepsis and how can these results be embedded to routine clinical practice

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

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

Discretion and complexity in customer focused environments

Operations have traditionally focused on reductive analysis; transactional processes open to mass-customisation and standardisation. This study proposes that service complexity created by extensive ‘reasonable’ customer demand limits the ability to standardise and manage systems through mass-customisation. Beyond mass-customisation we propose management is by discretion. Discretion is difficult, if not impossible to codify, so operations are ‘managed’ via framework principles that also are difficult to replicate and provide a source of sustainable competitive advantage. The study furthers the servitisation discussion through a public sector services case

An engineering systems approach to strategic change: The case of the European Automotive Industry

Build to Order [BTO] refers to a demand driven production approach where the majority of products and components are scheduled and built in response to a confirmed order received for it from a final customer. A £23m EU project involving leading automotive experts developed strategies and processes to realise an automotive BTO system in Europe. Despite significant investment and research to establish the required approaches the strategic vision has yet to be achieved. A holistic Engineering Systems approach, developed for complex engineering enterprises, provides an overview for strategic transformation. The current and future BTO state of the industry are described using the eight lenses of Enterprise Architecting, namely strategy, policy, organization, process, knowledge, IT, products and services. An expert panel of practitioners and academics validate and critique the detail and content of the industry transformation described and the Engineering Systems approach to strategic implementation. Following consultation and amendment the experts agree with and support both the content of the automotive BTO strategic vision and the Engineer Systems lenses as an approach to guide strategic change