Purpose -The purpose of this paper is to identify integrated solutions business as the first generation of servitized offerings and modular solution offerings as the second development phase in servitization of original equipment manufacturers. This study examines how the servitized manufacturer, Kone, moves from integrated solutions to modular solutions business and develops the requisite capabilities to design, produce and implement modular solution offerings. Design/methodology/approach -The paper reports a longitudinal case study of a provider of integrated solutions installed in buildings. During the ten years studied, the manufacturer implemented a strategic initiative to modularize its integrated solutions offering. Findings -The firm's transition to modular solutions progressed through three major capability development phases: solutions based on ad hoc integration, smart solutions based on modular design and through-chain modularity. The modular structure aims at fostering the efficiency of the solution offering and the associated production system. Research limitations/implications -Leveraging the benefits of modularity calls for an aligned combination of strategic, operational and technical capabilities contributing to the integration of resources in a modular production system for the solution providers' competitive performance. Practical implications -The study reports how a solution provider can develop the operational capabilities to integrate the core and peripheral components into the solution, and orchestrate the modular production system. Originality/value -This study is a rare longitudinal analysis of how a manufacturer builds a modular offering, the solution platform and the required competitive capabilities to provide the solution. Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode 630 IJOPM 39,5 full-service offerings (Brax and Jonsson, 2009;Oliva and Kallenberg, 2003). Advanced levels of servitization require demanding competitive capabilities to ensure flexibility, quality and effectiveness in solution provision while controlling costs. A comprehensive systematic review by Brax and Visintin (2017) demonstrates that pre-existing research has extensively documented the processes and patterns of transitions and extensions of manufacturers' business models toward increasing reliance on generating revenue through service elements.Previous servitization research has identified various critical capabilities for the business models of companies providing integrated solutions. Developing operational capabilities into the solution providers' core competencies enhances their competitive advantages especially in industrial markets characterized by emerging technologies, heterogeneous of customer needs and acc...

This study explains how manufacturers tackle the critical managerial challenge of transforming a product-focused sales force to undertake solution selling. Through an application of configurational theory, the authors explain how individual and organizational conditions combine to determine salespeople's engagement in solution selling. Multilevel, multisource data from the sales organization of a global supplier of building solutions represent input from salespeople (N = 184), solution champions (N = 23), and sales managers (N = 26). A fuzzy set qualitative comparative analysis reveals no single, optimal way to overcome transformation challenges. Rather, consistent with prior research, solution selling requires certain types of salespeople, because valuebased selling is a necessary condition for successful engagement. Beyond this foundational condition, a heterogeneous sales force can be engaged, as long as the organization provides appropriate support that is tailored to individual salespersons' needs. The findings affirm that this viable support can come from either sales managers or solution champions.

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