Servitization and operations management : a service-dominant logic approach

Managing organisational performance in sectors such as equipment provision has become increasingly complex as competition has heightened and firms have felt pressure to add value through the provision of services (Baines et al, 2007; Howard and Caldwell, 2011; Neely et al., 2011). This provision is commonly referred to as the servitization of manufacturing (Vandermerwe & Rada, 1988). By extending the traditional offering of equipment to include service activities however, underlying operational delivery systems and processes have become more complex to manage and co-ordinate. No longer are firms simply making and shipping products; they are now engaged in a more complex world of design and delivery (Neely et al., 2011). This study aims to explore servitization from a value perspective through the lens of Service-Dominant (S-D) logic, and to propose its implications for operations management

Measuring business process management in UK financial services

Discussion paperThere is a growing interest in the nature and significance of business processes both within the business community and in management research. For many researchers, process has evolved from its re-engineering origins to become a powerful tool for understanding and explaining business activity. Within this new paradigm, effective Business Process Management (BPM) is viewed as a pervasive and profound business challenge. A number of case studies have explored how companies react to this challenge and several recurring themes have emerged: for example, companies must fully identify their business processes, and introduce 'end to end' process measurement and management. However, these themes have not yet been synthesised into a single model capable of being measured. In the absence of such a model, it is difficult to explain why some companies are more active and effective in managing business processes than others. This paper reports on a collaborative exercise carried out with a large UK Bank to develop and test such a model in an empirical context. The findings suggest that the model is both valid and pragmatic. The results were used by the Bank to identify and implement business improvements. More importantly, the model provides a platform for assessing process performance across the financial services sector and underpinning future explanatory research. The paper concludes that BPM was an important consideration for the Bank, supporting the emerging paradigm, and recommends further research from within this perspectiv

'Second Generation' process thinking: a case study from UK financial services

Paper presented at British Academy of Management Conference, Harrogate, 2003.This paper traces the emergence of 'second generation' process thinking in a large UK Bank. In common with many companies, the bank had vigorously embraced the BPR revolution in the early 1990s, only to find the targeted benefits elusive and new challenges take priority. More recently, process has re-emerged as a force within the bank. This time however, the focus is not on radical change, but a more mature and sustained programme of 'end to end' process management. As part of the new drive, a collaborative research exercise was launched to develop a generic model for measuring the effectiveness of Business Process Management (BPM). A synthesis of current research was used to identify the key dimensions of BPM and translate them into a robust measurement instrument. Following an initial pilot, a comprehensive process audit was carried out. The findings recognised that the Bank had developed a strong process infrastructure, but found deployment limited with an ongoing focus on local performance rather than full 'end to end' management. The findings were presented to the management team and used to develop a process improvement programme, focusing on rapid deployment and enhanced communication. As such, the research demonstrates the compatibility of developing theory with the delivery of practical value to business managers. The paper concludes that there is evidence of new process thinking and invites researchers to monitor its future development and impact on the business community

Operationalising and managing variety

Working paperTo extend the conceptual model of a service system presented by Godsiff. (Godsiff, 2010). The model based on Ashby‟s Law of Requisite Variety (1964) suggests a number of possible sources of variety including, the value proposition, the customer and producer inputs and the customer and producer outcomes. Frei proposes two strategies for managing variability, accommodation often provided by employees managing the variations presented by the customers and variety reduction through the value proposition. (Frei, 2006). This paper explores both the types of variability and the strategies adopted to manage variability through the analysis of a case study based on a commercial laundry. Methodology/approach Empirical research in single case study over 12 month period; data was collected through interviews with the owner manager and operational director, and twelve months operational and customer data was provided for analysis

Four archetypes of process improvement: a Q-methodological study

This is an Accepted Manuscript of an article published by Taylor & Francis Group in International Journal of Production Research on 11/07/2014, available online: http://www.tandfonline.com/doi/full/10.1080/00207543.2013.867086This paper explores the process improvement approaches of organisations. It seeks to identify process redesign principles and the combinations of these principles that are used successfully in industry. We use Q-methodology to explore the viewpoints of a range of highly-experienced process experts about the success of 16 improvement practices. Q-methodology enables the examination of the similarities and differences in the success of the improvement principles used by organisations in order to inform archetypes of process improvement. Overall, our findings suggest that process improvement is determined through the application of two foundational principles combined with one of four archetypes. ‘Remove non-value-adding tasks’ and ‘re-sequence tasks’ are described as foundational principles of process improvement, whilst outsourcing needs to be approached with caution. Furthermore, we articulate four distinctive archetypes comprising unique configurations of improvement principles that can be used to redesign operational processes. Based on this evidence we propose a typology of process improvement. This work suggests that rather than adopting generic improvement frameworks, managers should consult the typology to determine the archetype in closest proximity to their specific requirements. This study has several limitations including the small number of items populating the concourse and the fact that implementation problems are not taken into account

Contextual variety, Internet-of-things and the choice of tailoring over platform : mass customisation strategy in supply chain management

This paper considers the implications for Supply Chain Management from the development of the Internet of Things (IoT) or Internet Connected Objects (ICO). We focus on the opportunities and challenges arising from consumption data as a result of ICO and how this can be translated into a provider’s strategy of offering different varieties of products. In our model, we consider two possible strategies: tailoring strategy and platform strategy. Tailoring strategy implies that a provider produces multiple varieties of a product that meet consumers’ needs. Platform strategy depicts the provider’s actions in offering a flexible and standardised platform which enables consumers’ needs to be met by incorporating personal ICO data onto various customisable applications independently produced by other providers that could be called on in context and on demand. We derive conditions under which each of the strategies may be profitable for the provider through maximising consumers’ value. We conclude by considering the implications for SCM research and practice including an extension of postponement taxonomies to include the customer as the completer of the product

Service delivery system design: characteristics and contingencies

publication-status: Publishedtypes: ArticleThis is an Accepted Manuscript of an article published in International Journal of Operations & Production Management, Vol. 31 (3), pp.324 – 349. DOI: 10.1108/01443571111111946 "This article is (c) Emerald Group Publishing and permission has been granted for this version to appear here: https://ore.exeter.ac.uk/repository/. Emerald does not grant permission for this article to be further copied/distributed or hosted elsewhere without the express permission from Emerald Group Publishing Limited."Purpose: The aim of this paper is to explore and empirically investigate the characteristics and contingencies of service delivery system design. Design/methodology/approach: Informed by the service strategy triad, a single embedded case study was designed to explore empirical data on four target markets, four service concepts, and on the design characteristics of the corresponding four service delivery systems. Data was collected in a market leading organisation in the B2B sector within the power industry. The service delivery systems comprise processes that sell electricity contracts and processes that bill against those contracts. Findings: First, the findings indicate what design characteristics are contingent upon the degree of customisation of the service concept. We show how this contingency has implications for the extents of employee skills, employee discretion, task routineness, automation, and for front office – back office configurations. Second, we challenge the consensus that low customer-contact processes are designed for the purpose of efficiency. Third, our findings contradict Metters and Vargas (2000) who state that it is not possible to have different front office – back office configurations in a single organisation. Research limitations/implications: While there are major interactions between the four service delivery systems supporting each individual service concept, this research does not examine the trade-offs between the various possible designs of these service delivery systems. Practical implications: The study emphasises the importance of considering the complexity of the service offering, the customer relationship strategy, and of taking a process-orientation to address service delivery system design

Process design principles in service firms: Universal or context dependent? A literature review and new research directions

publication-status: Acceptedtypes: ArticleThis is an Accepted Manuscript of an article published by Taylor & Francis Group in Total Quality Management & Business Excellence on 16/01/2012, available online: http://www.tandfonline.com/doi/abs/10.1080/14783363.2011.637797#.VGxftZ1FDcsThe aim of this article is to assess whether process design principles derived from best practices are universally applicable to service organisations or context dependent. This is achieved through a comprehensive review of the business process management (BPM) and operations management (OM) literatures. Our comparison of the existing bodies of knowledge in these disciplines reveals major inconsistencies in how the topic of process design in service environments is addressed. Drawing on the more mature, contingency-oriented OM literature, we challenge the BPM discipline which prescribes that process design principles derived from best practices are universally applicable irrespective of the context in which the service organisation operates. The results strongly suggest that in the business process design area one size does not fit all service organisations and that some design principles fit better under certain contextual conditions. We then use these findings to develop a contingency conceptual framework and associated research propositions linking the firm's service strategy context to the use of particular business process design principles. This extends existing theory and provides a platform for future process design research in service organisations that is more closely aligned with the needs of practitioners

Contextual variety, Internet-of-Things and the choice of tailoring over platform: Mass customisation strategy in supply chain management

AbstractThis paper considers the implications for Supply Chain Management (SCM) from the development of the Internet of Things (IoT) or Internet Connected Objects (ICO). We focus on opportunities and challenges stemming from consumption data that comes from ICO, and on how this data can be mapped onto strategic choices of product variety. We develop a simple analytical framework that illustrates the underlying mechanisms of a product supplier/producer׳s choice between (i) producing multiple product varieties as a way of meeting consumer demand (a “tailoring strategy”), and (ii) offering a flexible and standardised platform which enables consumers׳ needs to be met by incorporating personal ICO data into various customisable applications (a “platform strategy”). Under a platform strategy, the ICO data is independently produced by other providers and can be called on in both use and context of use. We derive conditions under which each of the strategies may be profitable for the provider through maximising consumers’ value. Our findings are that the higher the demand for contextual variety, the more profitable the platform strategy becomes, relative to the tailoring strategy. Our study concludes by considering the implications for SCM research and practice with an extension to postponement taxonomies, including those where the customer, and not the supplier, is the completer of the product, and we show that this yields higher profits than the tailoring strategy

Analysing the Role of BPM in Driving Customer Satisfaction

Achieving high levels of customer satisfaction is a core issue for any business. This paper presents the results of an empirical analysis, based on longitudinal data from a large UK bank on drivers of customer satisfaction. The results indicate that process management is a critical driver of TSQ and a fundamental component for attaining high levels of customer satisfaction. The paper proposes a comprehensive quantitative analysis using the structural equation modelling (SEM) methodology to explore the contribution of factors that drive customer satisfaction especially the role of BPM as a key driver