Resource allocation is challenged by dynamic environments where changes are frequent. The purpose of this paper is to identify resource allocation challenges and practices…
Resource allocation is challenged by dynamic environments where changes are frequent. The purpose of this paper is to identify resource allocation challenges and practices in service units that perform both project and non-project activities in dynamic environments. Its goal is to show that top-down mechanisms of project resource allocation need to be replaced by or supplemented with mechanisms that are more flexible.
A qualitative comparative case study was conducted in two service units of two project-based firms. The main source of data consisted of semi-structured interviews with 17 service managers and staff members.
This study shows that resource allocation is not necessarily a top-down process at all, and the practices are context-dependent. Two more flexible approaches are revealed – hybrid resource allocation and bottom-up resource allocation – as examples of managing resource allocation in service units that engage in projects under uncertain conditions. The results of the analysis highlight prioritisation and adapting to change and delay as the main issues that managers face in allocating resources to different types of projects and service activities in dynamic environments.
The two target companies chosen for the qualitative research design limit the analysis to project-based firms in a business-to-business context. Further, the viewpoint of the service unit is central to the study. Studying project resource allocation in different organisational contexts and uncovering the perspectives of product development and delivery units would offer promising directions for future research.
The study reveals that in dynamic project settings such as service organisations, top-down mechanisms of resource allocation need to be accompanied by other, more flexible approaches to ensure the sufficient resourcing of projects and related services in dynamic environments. Companies need to establish practices for resource allocation changes that are caused by re-prioritising tasks and accommodating changes and delays in their project and service activities.
Compared to a top-down perspective taken in previous research, the study proposes a more flexible approach for resource allocation in constantly changing environments with different project and service activities. Previous studies have focussed on resource competition between projects, placing project managers in the central role for resource allocation. By contrast, this study discusses hybrid and bottom-up resource allocation, both of which involve broader personnel engagement in resource allocation tasks, drawing on the experience of all employees.
The purpose of this paper is to better understand the efficient use of remote monitoring systems (RMS) to create business value for industrial services in manufacturing…
The purpose of this paper is to better understand the efficient use of remote monitoring systems (RMS) to create business value for industrial services in manufacturing firms. A business view to RMS is a key prerequisite for the successful application of the Internet of Things (IoT) in industrial services.
A qualitative multiple-case study was conducted in six engineering companies. The main source of data was semi-structured interviews with 16 managers.
The findings highlight the role of RMS in enabling manufacturing firms to collect data from customers to complement their limited knowledge about their customers. The study demonstrates the business value of using RMS in industrial services and the necessity of capturing the business value through advanced IT technologies.
The qualitative research design and choice of six target companies limit the findings to business-to-business manufacturing firms. Further, the focus is on the manager’s viewpoint. The findings imply new business value through an efficient use of RMS to complement direct customer contact.
The study draws attention to the skilled use of advanced RMS and information and communication technology as a prerequisite for the successful application of the IoT in manufacturing firms that provide services for complex solutions and customers dispersed globally.
The research shows that using information collected through RMS is an important factor in creating business value in a manufacturing firm’s customer relationships. The study contributes by integrating RMS into the customer information collection process to increase the amount, validity and quality of data.