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1 – 10 of 91
Article
Publication date: 19 October 2015

Daniela Andreini, Jari Salo, Robert Wendelin, Giuditta Pezzotta and Paolo Gaiardelli

Productization, defined as the standardization of the production and delivery processes of services, is an approach that many service companies undertake, moving from…

Abstract

Purpose

Productization, defined as the standardization of the production and delivery processes of services, is an approach that many service companies undertake, moving from relationship-intensive customer projects toward selling specific standardized offerings. In contrast to research on servitization, little in-depth research is available on the effects of this change of approach on the buyer-seller relationship. The purpose of this paper is to narrow this gap by providing evidence of the outcomes of productization in a corporate bank which has been serving Tier 1 customers for more than 15 years.

Design/methodology/approach

Using the IMP Group approach, this research identifies how productization affects buyer-seller relationships. In total, 37 key informant interviews were conducted on both sides of the buyer-seller relationship.

Findings

This research identified direct effects of productization relevant to buyer-seller relationships, and as many indirect effects through internal organizational processes. Productized service companies should develop their relationships with customers, by separating the standardization of the internal productization processes from the external relationship-based activities.

Originality/value

This paper contribute to the literature, exploring the long-term consequences of productization of services for the buyer-seller relationships.

Details

IMP Journal, vol. 9 no. 3
Type: Research Article
ISSN: 2059-1403

Keywords

Article
Publication date: 22 December 2020

Jochen Wirtz

This paper aims to emphasize a research priority on the understanding of service products and how services can be productized. Furthermore, it provides perspectives on the…

1422

Abstract

Purpose

This paper aims to emphasize a research priority on the understanding of service products and how services can be productized. Furthermore, it provides perspectives on the contribution of service research to management practice and who should be the main target audience of service research.

Design/methodology/approach

This paper is based on the personal reflections of an author of two leading services marketing textbooks.

Findings

This paper develops three propositions related to service research. First, it advances that academic service research has neglected the important topic of productizing services and that service products should be treated as concrete units of deliverables to customers rather than something fuzzy of unspecified quantity. That is, service products should be developed, designed, specified, configured, modularized, bundled, tiered, branded, priced sold and delivered to customers. More research is needed on how organizations can do this. Second, this paper argues that academics frequently underestimate the significant contributions service research has made to management practice and details important contributions that originated from the service research community. Third, it is proposed that the main target audience of service research should not be the marketing, sales and service departments. Rather, it should be decision makers (especially C-level executives) across all functions who should develop a service perspective and service mindset.

Research limitations/implications

This paper urges service researchers to focus on what are service products and how firm can create, manage and deliver them. Furthermore, it suggests that service researchers should be more confident and proud of the significant progress and contributions they have made to management practice over the past few decades. Finally, service researchers should tailor their messages for decisions makers of all organizational functions and departments in service organizations.

Originality/value

As a writer of five editions of a services marketing textbook, the author has sifted through three decades of service research. The reflections in this paper originate from this unique perspective.

Open Access
Article
Publication date: 23 September 2021

Janne Harkonen

The study aims to explore the benefits of service productisation to provide further understanding on the productisation concept as support for business processes and service

1830

Abstract

Purpose

The study aims to explore the benefits of service productisation to provide further understanding on the productisation concept as support for business processes and service management. The concept has been deficiently discussed regardless of the potential significance to the whole formed by service products, business processes, information technology (IT), people and data.

Design/methodology/approach

In the study, the exploratory empirical evidence is presented from 16 cases, 4 of which are from companies that are globally well-known.

Findings

The key findings of the paper include an overview of the benefits of service productisation and the relation to service offering, service processes and related resources. The concept links to the management of the whole formed by service products, business processes, IT, people and data. The noted benefits seem to be applicable to productisation of different service types, whilst some service characteristics may affect the specific emphasis.

Research limitations/implications

The limitations involve using secondary data, which, however, makes the cases less biased regarding the aims. Primary data are required to gain further insights into the phenomena and the identified benefits.

Practical implications

The findings provide support for issues that are commonly discussed by practitioners on a concept that is less studied by the scientific literature. Practitioners can work towards organisational efficiency and effectiveness by understanding the benefits of productisation. Understanding service productisation can support the effective management of business processes and work towards prosperity in the service business.

Originality/value

The study is the first one to analyse the benefits of service productisation by exploring the issue through multiple cases and attempting to identify aspects for further attention by the academic community.

Details

Business Process Management Journal, vol. 27 no. 8
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 3 October 2017

Janne Harkonen, Arto Tolonen and Harri Haapasalo

The previous literature has indicated that the productisation of services may play a role in service management, although a certain level of obscurity still surrounds the concept…

1727

Abstract

Purpose

The previous literature has indicated that the productisation of services may play a role in service management, although a certain level of obscurity still surrounds the concept. Therefore, the purpose of this paper is to clarify the meaning of service productisation (SP) as well as to contribute to a greater understanding of the concept.

Design/methodology/approach

An inductive analysis was applied to 13 instances of activities related to the productisation of services, with secondary data being analysed to identify practices relevant to SP and to examine their significance. The analysis is guided by an extensive literature review.

Findings

SP has been found to play a role in systematising and tangibilising a service offering and its related processes as well as in formalising the processes and service offerings. The potential elements of SP have been identified and supporting evidence has been provided. The findings indicate that SP has a specific focus on the offering and its related processes, with the aim being to create a service product that can be sold, delivered and invoiced. SP may utilise various practices and techniques, and customer orientation also plays a significant role. A typology of SP has been created by reflecting on its commercial and technical aspects.

Practical implications

This study has important implications for the service industry as it provides a structure and key considerations for productising services.

Originality/value

This study is one of the first to seek evidence for the concept of SP from multiple instances of SP as well as an extensive literature base. The typology created provides a context for discussing SP as well as reflecting on its commercial and technical aspects.

Details

Journal of Service Management, vol. 28 no. 5
Type: Research Article
ISSN: 1757-5818

Keywords

Article
Publication date: 20 June 2016

Aku Valtakoski and Katriina Järvi

The purpose of this paper is to study the antecedents of service innovation success in the knowledge-intensive business services context, especially why the participation of…

2078

Abstract

Purpose

The purpose of this paper is to study the antecedents of service innovation success in the knowledge-intensive business services context, especially why the participation of frontline employees and multiple organizational units is not enough for succeeding in knowledge-intensive service productization.

Design/methodology/approach

A multiple-case study of two polar cases with longitudinal data, participant observation, and key personnel interviews.

Findings

Case evidence indicates that frontline employee participation and cross-unit collaboration are not sufficient antecedents for successful service productization. Instead, to facilitate employee knowledge sharing, managers need to align the project goals with the goals of participating employees, and promote trust among the project workgroup. Moreover, to enable effective cross-unit collaboration, managers need to facilitate the establishment of common vocabulary for productization work and services, and to resolve any emerging conflicts between participating organizational units.

Practical implications

The findings indicate the importance of enabling knowledge sharing and cross-unit collaboration for service productization. The identified antecedents translate to practical strategies for achieving these. The results also highlight the importance of bottom-up service innovation, and the management of service innovation on the group level.

Originality/value

The study indicates that common antecedents for successful service innovation may not be sufficient in the knowledge-intensive context, calling into question the assumptions about individual and group behavior in service innovation, and suggesting the importance of multi-level perspective on service innovation.

Details

Journal of Service Management, vol. 27 no. 3
Type: Research Article
ISSN: 1757-5818

Keywords

Article
Publication date: 14 July 2022

Jochen Wirtz and Christian Kowalkowski

The business-to-business (B2B) marketing literature is heavily focused on the manufacturing sector. However, it is the B2B service sector that shows the highest growth in gross…

1879

Abstract

Purpose

The business-to-business (B2B) marketing literature is heavily focused on the manufacturing sector. However, it is the B2B service sector that shows the highest growth in gross domestic product (GDP). Beyond a vibrant stream of literature on servitization, the B2B literature has neglected drawing on the wider service literature. This paper aims to examine recent streams of service research that have promising implications and research opportunities for B2B marketing.

Design/methodology/approach

Together, the author team has decades of research, managerial and executive teaching experience related to B2B marketing and services marketing and management. The observations and reflections in this paper originate from this unique perspective and are supplemented by insights from 16 expert interviews.

Findings

The authors identify and discuss in this paper four broad and related themes from the service literature that can stimulate B2B research and practice. First, the authors highlight the implications for capturing value in economies with their rapidly increasing specialization and related growth in B2B services. Specifically, the authors explain where B2B firms should focus on to gain bargaining power in the value chains of the future. Second, an additional strategy to enhance a B2B firm’s power to capture value is servitization, which allows firms to get closer to their customers, increase their switching costs and build strategic partnerships. The authors explore how firms can use service productization to enhance their chances of successful servitization. Third, servitization is expensive, and productivity and scalability are often a challenge in B2B contexts. These issues are tackled in a recent service research stream on cost-effective service excellence (CESE) where the authors derive implications for B2B firms. Fourth and related to CESE, latest developments in intelligent automation offer exciting opportunities for B2B services to be made more scalable.

Originality/value

This paper is based on the unique perspective of the author team and a panel of experts and connects major streams of service research to the B2B literature.

Details

Journal of Business & Industrial Marketing, vol. 38 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 1 April 1997

Stan Maklan and Simon Knox

Outlines a new approach for managing brands that brings the process into line with recent advances in the management of flatter, customer‐facing organizations. Argues that the…

6488

Abstract

Outlines a new approach for managing brands that brings the process into line with recent advances in the management of flatter, customer‐facing organizations. Argues that the traditional marketing and brand‐building approach, characterized by a narrow, product‐focussed selling proposition, no longer adds sufficient customer value. As a result, a gap has arisen between the value offered by the brand and the value expected by its customers. The factors which contribute to this value gap are discussed in the context of the changing customer and the changing organization where customer value is increasingly generated by business processes traditionally outside the remit of brand management. Introduces a management tool, the Unique Organization Proposition (UOP) to bridge this value gap by integrating the company’s core business processes into a visible set of credentials that adds customer value through the supply chain. Identifies and discusses the ways in which the UOP links with each of five core business processes. In conclusion argues that if marketers are to regain their role in the heart of the value‐adding process, they must lead in the management of the UOP and relegate their traditional brand engineering tools to an appropriate place in the overall UOP architecture.

Details

Journal of Product & Brand Management, vol. 6 no. 2
Type: Research Article
ISSN: 1061-0421

Keywords

Book part
Publication date: 10 September 2018

Olli Kuivalainen, Jani Lindqvist, Mika Ruokonen and Sami Saarenketo

Many national and regional governments and various trade associations have created and are currently developing services that aim to provide support for firms that have just begun…

Abstract

Many national and regional governments and various trade associations have created and are currently developing services that aim to provide support for firms that have just begun to or which plan to operate in international markets. Consequently, the purpose of this chapter is to illustrate the role of various support services especially in the case of software small and medium-sized enterprises (SMEs) aiming to expand internationally and accelerate their international growth. In the empirical part of the chapter, the authors review the key support organisations Finland has for its software industry. Through a descriptive empirical survey (n = 25) of the industry, we illustrate the role of various support services that are especially targeted at firms aiming to accelerate their international growth, irrespective of the phase of internationalisation. Furthermore, the authors study the use, quality and effectiveness of the internationalisation of support services from the viewpoint of managers of Finnish software SMEs. Based on our results, it is easy and logical to argue that better targeted programmes should be developed for rapidly internationalising firms in the turbulent software market. However, there are already a few innovative and better targeted programmes being offered to Finnish software firms. According to our study, in the later phases of internationalisation, the key to success is more closely linked to the availability of external funding as well as knowledge and contacts provided by international consultants.

Details

Key Success Factors of SME Internationalisation: A Cross-Country Perspective
Type: Book
ISBN: 978-1-78754-277-8

Keywords

Article
Publication date: 28 January 2014

Daniel Kindström and Christian Kowalkowski

This article aims to investigate the nature and characteristics of business model elements required for successful service innovation. The authors examine which unique resources…

11381

Abstract

Purpose

This article aims to investigate the nature and characteristics of business model elements required for successful service innovation. The authors examine which unique resources and capabilities product-centric firms should develop and deploy to pursue service innovation.

Design/methodology/approach

Data collected from several research projects support iterations across empirical data and theory, in an abductive process. Empirical data come from product-centric firms; interviews and focus groups were the main data collection methods.

Findings

Specific resources and capabilities are needed for the proposed business model elements, as defined by the overarching strategy and structure. Firms can approach the process of service innovation from different starting points and sequences, depending on the context.

Research limitations/implications

Because it takes a synthesizing approach, this research lacks some detail. By taking a business model approach with a holistic perspective, it forgoes detailed descriptions to provide greater breadth.

Practical implications

Managers can use business models as tools to visualize changes, which should increase internal transparency, understanding, and awareness of service opportunities and necessary changes. Dependencies exist among elements; a change in one element likely affects the others. This study provides insights into which efforts are necessary and offers managers a guiding framework.

Originality/value

By providing a multidimensional perspective on service innovation, this study merges various previous research into a synthesized discussion. Combining a resources and capabilities perspective with a business model framework also leads to new insights regarding service innovation and associated activities.

Details

Journal of Business & Industrial Marketing, vol. 29 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

Open Access
Article
Publication date: 14 December 2023

Marta Tkaczyk, Anna Salina, Jouni Lyly-Yrjänäinen and Teemu Laine

New service businesses carry opportunities for industrial companies. The different cost management and management control implications of those service businesses deserve…

Abstract

Purpose

New service businesses carry opportunities for industrial companies. The different cost management and management control implications of those service businesses deserve attention, which is a widely under-researched area in management accounting and control literature. Digital twins could hold potential in unveiling and supporting those new service business opportunities, as a unique approach of this paper. Thus, the purpose of this paper is to examine the possibility and potential for creating a digital twin of a service, especially to unveil the management accounting and control implications of the digital twin in developing new service businesses.

Design/methodology/approach

This paper investigates the potential of a digital twin in unveiling cost and control implications of new service businesses by examining the characteristics of a digital twin in the service business development context. The paper use an in-depth interventionist case study, where the designed animations illustrate the possibilities of a digital twin of a service. The animations showing the service process characteristics were first used as a communication tool and eventually those animations were actively used in customer cases for different purposes. This motivated the idea for examining the implications of such animations representing a digital twin of a service.

Findings

The paper provides empirical insights regarding the potential for developing and using a digital twin of a service for different cost management and management control purposes. The digital twin of a service may include all main details of a new service offering, simulating the functionality of a service, hence making the performance and the implications of the new service concept clear for all the stakeholders. The digital twin of the service enables defining the processes, setting targets and helps communication about the value generation. Thus, they represent a significant toolkit for the management accounting and control function of the manufacturers.

Originality/value

This paper is among the first attempts to understand the digital twin of the service. The paper is unique in providing financial and control implications of digital twins also in the context of service business development. The in-depth interventionist approach enabled an exceptional exploration process on the subject. The article paves the way toward further research on managing the digital twins of services in the future.

Details

Qualitative Research in Accounting & Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1176-6093

Keywords

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