Organisational transformation towards servitization

Purpose: The aim of this paper is to develop a model, which illuminates the transformation journey towards servitization in the manufacturing context. Design/Methodology/Approach: This is a theoretical paper based on extensive review of literature on organisation change and transformation, and servitization. This was followed by a series of structured engagement workshops with senior executives of 10 multinational manufacturers in order to synthesis the propositions and further inform the development of the framework. Findings: Our analysis demonstrates that the organisational transformation can be explained as four stages of development, which the manufacturers proceed through according to the impacts of five forces. Originality/Value: Previous studies on servitization succeed at identifying different stages towards servitization. However, the stages are loosely defined and struggled to demonstrate the relevant transformation pathways. This paper has, therefore, addressed this issue

IoT-enabled Advanced Services: exploring the IoT-artefact as a socio-technical construct

The present study draws on the Information Systems (IS) artefact theory (Lee, Thomas, & Baskerville, 2015) to systematically conceptualize the IoT and investigate its contribution to the manufacturer’s advanced services. The study employs qualitative methods to analyse the advanced services offerings of eight multinational manufacturers and identifies the specific IS artefacts, their underlying information-, social- and technology-subsystems and their enabling roles in an advanced services context. The study and its findings contribute to the development of a socio-technical IoT perspective and an enhanced understanding of the role IoT has in an advanced services context

Barriers to capturing the value of advanced services and digitisation in the road transport industry

Servitization and digitization together provide significant opportunities to raise the performance and profitability of the road transport industry. To date these opportunities are only sparsely captured and the potential economic, social and environmental value is forgone. We set out to investigate the barriers to capturing the value of servitization and digitization in the road transport industry

Network positioning and risk perception in servitization:evidence from the UK road transport industry

For manufacturing firms, the integration of advanced services into their customer offerings has become a crucial decision. Such commercial decisions require weighting the risks and rewards of implementing a business model based on advanced services. While academic experts acknowledge uncertainty of returns on investment despite potential advantages, research generally fails to address the challenge of calculating the actual risks involved in ‘servitization’. This paper seeks better understanding of managers’ risk perception and of servitization implications for strategic partnerships and network positioning, while considering the impact of factors such as entry barriers, technological knowledge and position in the supply chain (SC). Qualitative evidence is drawn from an industrial case study involving firms in the UK’s road transport industry: fourteen in-depth interviews with senior executives from seven companies (manufacturers, operators, technology providers). During interviews, a payment card exercise measured risk perception and willingness to take strategic ‘make-or-buy’ decisions. Results suggest that implementing advanced services is perceived as a high-risk strategy, especially when firms lack in-house technological knowledge. However, collaborative strategic partnerships within supply chain networks can mitigate this risk and prove crucial to building entry barriers against external competitors. Based on these findings, implications for network positioning are developed

Organisational change towards servitization:a theoretical framework

Purpose: The need for a holistic framework for studying organisational transformation towards Servitization is implicit. This is particularly relevant as Servitization demands consideration of both business model and organisational change. The purpose of this paper is, therefore, to provide an integrative framework that systematically captures and evaluate existing literature on Servitization. Design/methodology/approach: The aim of the paper has been achieved through three main objectives; comprehensively examine the literature in organisational change management that would assist with the selection of the most effective evaluation framework, classify previous studies against the proposed framework through a systematic literature review methodology and analyse the selected papers and propose research questions/propositions based on the identified gaps. Findings: Results indicate that there are two somewhat macro opportunities for the Servitization community, namely, stronger infusion of generic theory into the Servitization debate and exploring Servitization in action through the lens of the theoretical framework. Practical implications: The findings of the paper demonstrate the gaps in the Servitization literature, which indeed require further theoretical/empirical research. Originality/value: It is discussed the usefulness and practicality of viewing research contributions that are setting out to be either “descriptive” or “prescriptive”. Consequently, the authors have proposed several avenues for future research based on these two viewpoints

Interactively developed capabilities:evidence from dyadic servitization relationships

Purpose – The paper challenges the focal firm perspective of much resource/capability research, identifying how a dyadic perspective facilitates identification of capabilities required for servitization. Design/methodology/approach – Exploratory study consisting of seven dyadic relationships in five sectors. Findings – An additional dimension of capabilities should be recognised; whether they are developed independently or interactively (with another actor). The following examples of interactively developed capabilities are identified: knowledge development, where partners interactively communicate to understand capabilities; service enablement, manufacturers work with suppliers and customers to support delivery of new services; service development, partners interact to optimise performance of existing services; risk management, customers work with manufacturers to manage risks of product acquisition/operation. Six propositions were developed to articulate these findings. Research implications/limitations – Interactively developed capabilities are created when two or more actors interact to create value. Interactively developed capabilities do not just reside within one firm and, therefore, cannot be a source of competitive advantage for one firm alone. Many of the capabilities required for servitization are interactive, yet have received little research attention. The study does not provide an exhaustive list of interactively developed capabilities, but demonstrates their existence in manufacturer/supplier and manufacturer/customer dyads. Practical implications – Manufacturers need to understand how to develop capabilities interactively to create competitive advantage and value and identify other actors with whom these capabilities can be developed. Originality/value – Previous research has focused on relational capabilities within a focal firm. This study extends existing theories to include interactively developed capabilities. The paper proposes that interactivity is a key dimension of actors’ complementary capabilities

Servitization:revisiting the state-of-the-art and research priorities

Purpose – This paper consolidates the servitization knowledge base from an organisational change perspective, identifying developed, developing and undeveloped topics to provide a platform that directs future research. Design/methodology/approach – This paper addresses three objectives : a) it comprehensively examines organisational change management literature for selection of a theoretical framework, b) it classifies extant studies within the framework through a systemic literature review, and (c) it analyses 232 selected papers and proposes a research agenda. Findings – Analysis suggests increasing global awareness of the importance of services to manufacturers. However, some topics, especially related to servitization transformation, remain undeveloped. Research limitations/implications – Although the authors tried to include all publications relevant to servitization, some might not have been captured. Evaluation and interpretation relied on the research team and subsequent research workshops. Practical implications - One of the most significant challenges for practitioners of servitization is how to transform a manufacturing organisation to exploit the opportunity. This paper consolidates literature regarding servitization, identifying progress concerning key research topics and contributing a platform for future research. The goal is to inform research to result eventually in a roadmap for practitioners seeking to servitize. Originality/value - Although extant reviews of servitization identify themes that are examined well, they struggle to identify unanswered questions. This paper addresses this gap by focusing on servitization as a process of organisational change

Data mining algorithm predicts a range of adverse outcomes in major depression

Background: Course of illness in major depression (MD) is highly varied, which might lead to both under- and overtreatment if clinicians adhere to a 'one-size-fits-all' approach. Novel opportunities in data mining could lead to prediction models that can assist clinicians in treatment decisions tailored to the individual patient. This study assesses the performance of a previously developed data mining algorithm to predict future episodes of MD based on clinical information in new data. Methods: We applied a prediction model utilizing baseline clinical characteristics in subjects who reported lifetime MD to two independent test samples (total n = 4226). We assessed the model's performance to predict future episodes of MD, anxiety disorders, and disability during follow-up (1–9 years after baseline). In addition, we compared its prediction performance with well-known risk factors for a severe course of illness. Results: Our model consistently predicted future episodes of MD in both test samples (AUC 0.68–0.73, modest prediction). Equally accurately, it predicted episodes of generalized anxiety disorder, panic disorder and disability (AUC 0.65–0.78). Our model predicted these outcomes more accurately than risk factors for a severe course of illness such as family history of MD and lifetime traumas. Limitations: Prediction accuracy might be different for specific subgroups, such as hospitalized patients or patients with a different cultural background. Conclusions: Our prediction model consistently predicted a range of adverse outcomes in MD across two independent test samples derived from studies in different subpopulations, countries, using different measurement procedures. This replication study holds promise for application in clinical practice

Contextualising servitization – the shaping of the organisational transformation

This study has set out to build the evidence base underpinning the context of the SME servitization transformation. It explores how the organisational environment forces manufacturing SMEs to move towards service provision through depicting their perception of the business environment. The study contributes to the understanding of servitization by populating the selected conceptual model with insights drawn from collective experiences of 25 senior executives from 17 servitizing SMEs. The findings summarise how internal and external organisational environment factors shape servitization transformation and how they differ when considering the stages of transformatio

Servitization in manufacturing: A business model perspective

The current research on Business Models (BMs) in servitization tends to focus on either identifying the key components of relevant BMs or examining the challenges of introducing such BMs. The creation of a BM is not a discrete event, but the result of a long-term continuous refinement effort. Redirecting the servitization research from concentrating on successful service-focused BMs to focusing on the process of developing such models is critical for servitization theory and practice. This paper, therefore, sets out to shed light on the development and refinement of the service-focused BMs in the manufacturing context