The Role of IT in the Formation of a Company\u27s Offering - A Framework for Empirical Analysis

In this study, we explore the role of information technology in the seller’s decision to formulate an offering. On the basis of a review of existing studies, we identify three dimensions characterizing the nature of a company’s offering as a part of a comprehensive business model. We analyze offerings on the continuum from product-oriented to service-oriented offerings. The established dimensions are: degree of standardization, timing of costs and price quotation principle. We identify three types of factors (to be tested empirically) affecting the seller’s decision to formulate an offering. These factors are: (1) the use of IT (the degree of integration to electronic business between the buyer and supplier organizations), (2) factors endogenous to the company’s offering, (i.e., scope of contract and type of installations to maintain), and (3) factors exogenous to the company’s offering, (i.e., factors relating to technical unpredictability and core competencies)

Business Models: A New Perspective on Knowledge-Intensive Services in the Software Industry

Firms' specialization to core competencies as a response to intensive competition in technology and knowledge-intensive industries, such as software industry, emphasize network-intensive business behavior and the importance of utilizing resources beyond company boundaries. In recent years, outsourcing of services, including knowledge-intensive services (KIS), have attracted increasing attention in the research literature. However, KIS have not been sufficiently analyzed in connection with different types of business models. Taking theories of interorganizational exchange, including industrial network approach and the transaction cost theory as our basis, we analyze key knowledge-intensive services in four different types of business models of software companies. In our empirical analysis, we identify that the role and type of KIS vary systematically by business model-types

How Open Source Has Changed the Software Industry: Perspectives from Open Source Entrepreneurs

The emergence of F/LOSS (free/libre open source software) has triggered several changes in the software industry. F/LOSS has been cited as an archetypal form of open innovation; it consists of the convergence and collaboration of like-minded parties. An increasing number of software firms have taken upon this approach to link outsiders into their service development and product design. Also, software firms have been increasingly grounded their business models on user-centric and service-oriented operations. This article describes a study that investigates these changes from the perspective of F/LOSS entrepreneurs. The findings are summarized into four issues that are critical in managing an F/LOSS business: i) dealing with organizational changes in the innovation process; ii) mastering user involvement; iii) successfully using resources; and iv) designing revenue models

Digital Transformation: The Interplay of Explorative and Exploitative Capability Development

This research focuses on the firms’ capability development in the era of digital transformation. We empirically investigate how firms operating in heavy industry extend their capabilities through explorative and exploitative capability development. Our study uncovers that firms in the industry tend to begin with exploitation and gradually extend to exploration. Our findings highlight the importance and necessity of adopting network capabilities both for execution of transformation activities, and for developing internal capabilities. The empirical evidence indicates that inter-organizational ambidexterity is essential for unleashing the full potential of digital transformation, and that ambidexterity can be achieved through a combination of internal and external capabilities

Game-based learning in an Industrial Service Operations Management Course

[EN] This study explores how a game-based approach supports students’ learning in a graduate course on industrial service operations management. Aalto Manufacturing Game (AMG) has been played for several years as a part of an Industrial Management course to provide students with a realistic view of industrial services and asset management. The game illustrates supply chain dynamics and asset management challenges, with a focus on the quality deterioration problem in service provision (Oliva & Sterman, 2001). In this paper, we evaluate the effect of AMG on participants’ learning based on game session feedback and written exam answers. We also evaluate the game as a learning experience trough feedback, observations, and interviews. The findings suggest that the gamified version of teaching provides students with the opportunity to learn by doing while having fun in the class. The game enables participants to socially construct knowledge, raising the effectiveness of teaching supply chain challenges by simulating real world problems from different perspectives of actors involved in operations. Based on our research we argue that the game enhances the learning experience through emotionally engaging students in the activity. To this end, the learning objectives should be embedded in the game dramaturgy.http://ocs.editorial.upv.es/index.php/HEAD/HEAD18Tetik, M.; Öhman, M.; Rajala, R.; Holmström, J. (2018). Game-based learning in an Industrial Service Operations Management Course. Editorial Universitat Politècnica de València. 837-845. https://doi.org/10.4995/HEAD18.2018.8095OCS83784

A Value Proposition Development Framework for Industrial Service

Value proposition is a key concept in the research on service and in the practice of service management. Value propositions are described as tools to communicate and motivate a joint value creation opportunity among involved organizations and stakeholders. The future orientation and intangibility of service places value proposition as the key element of competitive service business. However, the concept of value proposition if often vaguely defined, the underlying theoretical concepts missing, and the managerial practices to create value propositions unexplored. This study investigates how value-focused industrial companies build value propositions by conducting customer value research. Building on our findings, we suggest theoretical and managerial frameworks for value proposition development

Effective Digital Channel Marketing for Cybersecurity Solutions

Smaller organizations are prime targets for hackers and malware, because these businesses lack cybersecurity plans and the resources to survive a serious security incident. To exploit this market opportunity, cybersecurity solution providers need to leverage the power of downstream channel members. We investigate how a supplier's digital channel marketing can encourage value-added resellers to sell that supplier’s cybersecurity solutions. Our analysis of survey data from 109 value-added resellers of a multinational supplier shows that resellers are more committed to stock and sell cybersecurity products and services if the supplier’s digital channel marketing provides tools that help them sell the solutions to end customers. This support is likely needed because cybersecurity offerings are technologically complex and systemic by nature, as supported by the finding that value-added resellers pay little attention to supplier’s campaigns and price discounts. Thus, cybersecurity suppliers should maintain trusted and informative relationships with their resellers and provide them with hands-on sales tools, because a reseller's commitment to selling cybersecurity solutions is linked with their ability to understand the offering and with the extent of their supplier relationship. These findings are in line with previous literature on the challenges perceived by salespeople in selling novel and complex technology

Supply Chain Reactions To The Rise Of The Internet Of Things: Reseller Adoption Of Smart Microgrid Solutions

This study applies technology adoption and strategic orientation theories to investigate the reseller adoption of smart microgrids (SMGs). These intelligent power generation solutions, operating on the Internet of Things (IoT) technology, rely on sustainable energy sources to supply small-scale loads. Using data from 100 power system resellers in North America, the study reveals that resellers’ performance expectancy and vendors’ innovation orientation foster reseller adoption of SMG solutions, while adoption is not driven by resellers’ effort expectancy. Furthermore, supply chain members play a crucial role in IoT technology diffusion, but the existing research lacks comprehensive models to help illuminate reseller adoption

Leveraging the benefits of modularity in the provision of integrated solutions: A strategic learning perspective

The purpose of this study is to improve the current understanding of the ways a manufacturer can learn to leverage the benefits associated with modular solution designs in its transition to a solution provider. We find that a modular solution design acts as a key integration mechanism, allowing the provider to orchestrate actors in the supply network for simultaneous exploitation of resources related to the existing solution modules and exploration of new ones. Yet, to implement a modular solution design effectively, the provider needs to engage in strategic learning that improves its ability to explore customers' readiness to adopt new types of solutions, while it develops an ability to deploy the derivative solutions by utilizing the resources related to its core product business. Mastering the co-evolutionary processes of strategic learning that combine elements of explorative and exploitative learning facilitates a pursuit of the industrializer path to service-based growth. For managers, our findings demonstrate the ways a manufacturer may unlock the economies of scale in solution business by leveraging the benefits of a modular solution design.</p