Operationalising IoT for reverse supply: the development of use-visibility measures

© 2016, © Authors. Published by Emerald Group Publishing Limited. This work is published under the Creative Commons Attribution (CC BY 3.0) Licence Purpose – Improvement of reverse supply chains requires accurate and timely information about the patterns of consumption. In the consumer context, the ways to generate and access such use-visibility data are in their infancy. The purpose of this study is to demonstrate how the Internet of Things (IoT) may be operationalised in the domestic setting to capture data on a consumer’s use of products and the implications for reverse supply chains. Design/methodology/approach – This study uses an explorative case approach drawing on data from studies of six UK households. “Horizontal” data, which reveals patterns in consumers’ use processes, is generated by combining “vertical” data from multiple sources. Use processes in the homes are mapped using IDEF0 and illustrated with the data. The quantitative data are generated using wireless sensors in the home, and qualitative data are drawn from online calendars, social media, interviews and ethnography. Findings – The study proposes four generic measurement categories for operationalising the concept of use-visibility: experience, consumption, interaction and depletion, which together address the use of different household resources. The explorative case demonstrates how these measures can be operationalised to achieve visibility of the context of use in the home. The potential of such use-visibility for reverse supply chains is discussed. Research limitations/implications – This explorative case study is based on an in-depth study of the bathroom which illustrates the application of use-visibility measures (UVMs) but provides a limited use context. Further research is needed from a wider set of homes and a wider set of use processes and contexts. Practical implications – The case demonstrates the operationalisation of the combination of data from different sources and helps answer questions of “why?”, “how?”, “when?” and “how much?”, which can inform reverse supply chains. The four UVMs can be operationalised in a way that can contribute to supply chain visibility, providing accurate and timely information of consumption, optimising resource use and eliminating waste. Originality/value – IDEF0 framework and case analysis is used to identify and validate four UVMs available through IoT data – that of experience, consumption, interaction and depletion. The UVMs characterise IoT data generated from a given process and inform the primary reverse flow in the future supply chain. They provide the basis for future data collection and development of theory around their effect on reverse supply chain efficiency

Servitization and operations management: a service-dominant logic approach

Authors' pre-print draft; earlier version issued as working paper. Final version published in International Journal of Operations & Production Management. Available online at http://www.emeraldinsight.com/The accepted author manuscript version is in ORE: http://hdl.handle.net/10871/31585Purpose – The purpose of this paper is to provide further insight into operations management of the product-service (P-S) transition, known as servitization, and the resulting product service system (PSS) offerings. In exploring the P-S transition, this paper adopts a service-dominant (S-D) logic view of value creation, using it as a lens through which to explore value propositions of the P-S transition and their operations design. Design/methodology/approach – This paper presents an in-depth case study of an original equipment manufacturer of durable capital equipment who, over the last five years, has expanded its offerings to include use- and result-orientated PSS. The research design uses a multi-method approach; employing 28 in-depth qualitative interviews with customers and employees and analysis of texts, documents and secondary data including five years of enterprise resource planning (ERP), call centre and contract data. Findings – The paper identifies ten generic P-S attributes that are abstracted into four nested value propositions: asset value proposition; recovery value proposition; availability value proposition; and outcome value proposition. In examining the operations design for delivery of these value propositions, it is found that the role and importance of contextual variety increases as the organisation moves through the value propositions. Interdependencies amongst the value propositions and differences in operational design for each value proposition are also found. Research limitations/implications – The paper investigates PSS through a S-D logic mindset. First, the paper considers value propositions of PSS not according to “product” or “service” but in terms of how resources (both material and human) are optimally designed to co-create customer value. Second, a value co-creation system of nested value propositions is illustrated. In so doing, the findings have a number of implications for literature on both PSS and S-D logic. In addition, the research adds to the PSS literature through the identification and consideration of the concept of contextual use variety. Practical implications – The paper demonstrates the complexity of the transition from product to service. Specifically, service cannot be seen as a bolt-on extra to their product offering; complexity caused by interactions and changes to the core offering require a systems perspective and consideration of both firm and customer skills and resources. Originality/value – This paper extends existing literature on the P-S transition and its implications for operations management. Notably, it takes an S-D logic perspective of value creation and in so doing highlights the importance and role of contextual use variety in the P-S transition. It also provides further empirical evidence that the P-S transition cannot be treated as discrete stages but is evolutionary and requires a complex systems perspectiv

Two strands of servitization: a thematic analysis of traditional and customer co-created servitization and future research directions

The servitization literature has diverged, some adopting a goods-dominant logic and some a service-dominant logic. While both literature streams deal with servitization, their conceptual underpinnings and use of key terms are fundamentally different and have become confused within literature. This lack of clarity and understanding presents a challenge to both research and practice. The paper asks what the points of convergence and divergence are between the two streams of literature. The extant literature is reviewed to identify and understand where and how the streams converge and diverge. A two-tiered thematic analysis with both semantic and latent theme analysis is employed. Our findings highlight five points of departure, as well as highlighting examples where both logics have been applied. The five points of departure are the differing conceptualisations of: Value-in-Use, Design of the Servitized Offering, Value Co-production and Value Co-creation, Contextual Variety and Complexity, and Business Model of Solutions and Outcomes. We also propose conditions under which one logic may be more appropriate, in particular we find that adoption of a goods-dominant logic and service-dominant logic are better suited to the pursuit of efficiency and effectiveness, respectively. Finally, we identify future research directions, particularly within the domain of the Internet-of-Things

Advanced demand and a critical analysis of revenue management

Pre-print; author's draftThis paper presents a theoretical framework of advanced demand through six propositions. The framework introduces the concept of acquisition and valuation risks and suggests that advanced demand distribution is rooted in the trade off between them. Furthermore, since advanced buyers may not consume, firms may be able to re-sell capacity relinquished. The study then proposes how refunds could provide additional revenue to firms. The study further suggests theoretical reasons why and when service firms are able to practice revenue management, suggesting that RM tools such as overbooking and demand forecasting may not be the only tools for higher revenue

Competition in the advanced sale of service capacity

Since service production and consumption are inseparable, many service firms sell their capacity in advance. This paper examines the optimality and practice of advanced sale of service capacity under duopolistic competition. Using a game-theoretic approach, it attempts to explain why, despite sophisticated practices of advanced sale in many service industries, many service firms still do not sell in advance. It demonstrates that competition and market price sensitivity to a firm's capacity can impact not only a firm's decision to sell in advance, but also its pricing and capacity allocation decisions.services; yield management; competitive strategy; game theory; advanced sale; service capacity; competition; market price; pricing; capacity allocation.

Outcome-based service contracts in the defence industry – mitigating the challenges

Purpose – This case study aims to explore the risks and challenges associated with the implementation of outcome-based contracts (OBCs) in maintenance, repair and overhaul services in the defence industry. It also aims to identify ways to address and reduce them. Design/methodology/approach – The case study approach was used to capture the dynamics of OBCs in B2B service delivery. The challenges and risks were explored using qualitative approaches such as in-depth interviews, and findings were abstracted through grounded theory. The factors identified from the above findings were structured in a survey and validated using simple descriptive statistics. Findings – This study identified the challenges and risks of implementing OBCs, which include complexity and unpredictability of costs, dependability on customer in delivering the service and cultural change from traditional setting. Although the survey results revealed 11 factors that could mitigate these challenges and risks, the most important factors are mutual expectations, teamwork, shared information and materials as well as the firm's access to customer resources. Practical implications – This study's results have practical implications for businesses implementing OBCs in the B2B arena. Ensuring the presence of these factors, identified from this study, in OBC delivery would overcome most of the challenges and risks faced. Originality/value – Although research has been done on OBCs, many are conceptual or theoretical studies. This study is an empirical research into the challenges and risks of OBCs and the factors that could mitigate them; this advances knowledge in this domain

Outcome-based contracts as a driver for systems thinking and service-dominant logic in service science: Evidence from the defence industry

Summary Two outcome-based defence contracts are studied in the attempt to better understand the provision of services in maintenance, repair and overhaul (MRO) environment that is contracted on the outcome of the equipment, rather than the provision of equipment. The nature of the contract changes the dynamics of the delivery, bringing complex issues such as customer behaviours and involvement to the forefront, with both customer and firm focused on value co-creation and co-production, rather than each party's contractual obligation. We uncover four areas that are crucial in the understanding of value co-production in service delivery and analysed them through a systems approach combined with the application of the service-dominant logic, both considered as the theoretical underpinnings of service science.Systems thinking Service science Outcome-based contracts Value co-creation Service-dominant logic

The antecedents of salespeople's relational behaviors

Purpose – This paper aims to examine the driving factors of salespeople's relational behaviors in the business to business marketing context. Design/methodology/approach – The hypotheses were tested through a quantitative study via an online survey. Data were collected from 224 salespeople dealing with business customers in manufacturing as well as service industries in China. Findings – The results showed that perceived consequences, affect-based judgment and salespeople's communal or exchange orientation influenced their relational behaviors. In particular, communal orientation, perceived reciprocity from the customer, and a liking for the customer positively affected relational behaviors, whilst exchange orientation had a negative impact on those behaviors. Originality/value – This paper provides a framework of the antecedents to salespeople's relational behaviors in the business to business marketing context, filling in the gaps found in previous research by studying the driving factors, not the outcomes, of individual salespeople's relational behaviors