How Business Customers Judge Solutions: Solution Quality and Value in Use

Macdonald, Emma K.; Kleinaltenkamp, Michael; Wilson, Hugh

doi:10.1509/jm.15.0109

Cited by 313 publications

(306 citation statements)

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“…The value proposition follows the maxim to identify opportunities for value creation before fixing actual product or service specifications. The starting point is to identify propositions that enhance the value-in-use in the context of users (Ballantyne & Vaarey, 2006;MacDonald, Kleinaltenkamp, & Wilson, 2016). In the case of IIoT, potential value propositions for manufacturers who currently buy or lease their machines could be linked to the benefits of transparency, real-time data, and remote access and control.…”

Section: Components Of Effective Business Model Design While There Amentioning

confidence: 99%

Unlocking value from machines: business models and the industrial internet of things

Ehret

Wirtz

2016

Journal of Marketing Management

214

120

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In this article we argue that the Industrial Internet of Things (IIoT) offers new opportunities and harbors threats that companies are not able to address with existing business models. Entrepreneurship and Transaction Cost Theories are used to explore the conditions for designing nonownership business models for the emerging IIoT with its implications for sharing uncertain opportunities and downsides, and for transforming these uncertainties into business opportunities. Nonownership contracts are introduced as the basis for business model design and are proposed as an architecture for the productive sharing of uncertainties in IIoT manufacturing networks. The following three main types of IIoT-enabled business models were identified: (1) Provision of manufacturing assets, maintenance and repair, and their operation, (2) innovative information and analytical services that help manufacturing (e.g., based on artificial intelligence, big data, and analytics), and (3) new services targeted at end-users (e.g., offering efficient customization by integrating end-users into the manufacturing and supply chain ecosystem).

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Section: Components Of Effective Business Model Design While There Amentioning

confidence: 99%

Unlocking value from machines: business models and the industrial internet of things

Ehret

Wirtz

2016

Journal of Marketing Management

214

120

View full text Add to dashboard Cite

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“…Instead, they are jointly designed and continually optimized by both parties (Macdonald, Kleinaltenkamp et al 2016). This is axiomatic to views such as the Service Dominant Logic where value is co-created between the supplier and the customer (Gummesson 1998, Tzokas and Saren 1999, Vargo and Lusch 2004.…”

Section: Value Propositions In Procurementmentioning

confidence: 99%

“…These activities are carried out over time (Macdonald, Kleinaltenkamp et al 2016) during which the parties discuss and revise each other's value propositions (Ballantyne, Frow et al (2011).…”

Section: Saab's Supplier Value Propositionsmentioning

confidence: 99%

The role of context, activities, and organization, in Value-Based Procurement

Larsson¹

2018

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This thesis explores the adoption of a Value-Based Procurement Strategy. A procurement strategy is value-based when it facilitates procurement to develop attractive value propositions for both suppliers and internal stakeholders. The procurement function, including its activities and organization, and the collaboration with suppliers, are shaped to achieve this goal. SAAB, a Swedish military fighter airplane manufacturer, has been driven to adopt such a strategy by its surrounding context and market position, which demand that SAAB find new ways to attract key suppliers. SAAB responded to this demand by offering suppliers alternative benefits in terms of, for example, knowledge, intelligence, standardization, co-marketing, and prioritization. SAAB offers the empirical opportunity taken by this thesis to explore Value-Based Procurement.A theoretical framework built on literature on procurement in terms of procurement context, procurement activities, and procurement organization informs this study. The framework also encompasses literature on value and value propositions. A value perspective describes well both how SAAB's procurement function has been shaped, and the work that the procurement Värdeerbjudanden är verktyg för att utveckla inköpsstrategi och för att exekvera på sådan strategi i inköps arbete. Denna avhandling fördjupar också förståelsen för värde genom att förespråka en parallell syn på samutvecklat värde för kund och leverantör. Slutligen bidrar den till inköpsliteraturen genom att visa att den köpande sidan också kan erbjuda värde. Denna avhandling bidrar till företagsledare genom att illustrera hur en Värdebaserad inköpsstrategi kan införas och möjliga anledningar till varför den borde införas. Den föreslår också "value actions" som möjliga satsningar på att förbättra Värdebaserad inköpsstrategi.-viii --ix -

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“…The first research question will investigate the concept of solution quality and describe the factors that influence this concept. Previous research on quality (in a manufacturing context) has touched on the subject of how quality of solutions can be explained Macdonald, Kleinaltenkamp, and Wilson 2016). However, there is a need for a more thorough investigation to understand solution quality and its various components.…”

Section: Aim and Research Questionsmentioning

confidence: 99%

“…In addition, solution quality as a concept has recently been introduced Macdonald, Kleinaltenkamp, and Wilson 2016) and an increased understanding of what the concept comprises is needed.…”

Section: Introductionmentioning

confidence: 99%

Understanding Solution Quality

Johansson¹

2016

Linköping Studies in Science and Technology. Dissertations

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The integration of services and products into solutions can open up new business opportunities for firms. This thesis concerns how firms can provide solutions that are perceived as high quality. Solutions are often provided over several years, which implies a changed customer relationship compared to product provisions. Since the solution aims to support the customer's activities, firms face new challenges when introducing solutions. One challenge is to integrate all components and activities of the solution, and simultaneously support the customer's activities. In addition, the firm must ensure that the solution and all of its parts are of high quality.Most of the existing research on quality is related to the management of a firm's internal activities and the interaction during exchange. Within the research on quality, customer orientation means that a firm should manage the relevant product or service to meet customer requirements. When this is achieved, the product or service is of high quality. Since solutions are seen as services and products that are integrated as an outcome, as well as a customer relational process that aims to support the customer's activities, firms have little to learn from previous research about the quality of solutions.The aim of this thesis is to increase knowledge about how to manage solution quality. The thesis combines insights from research on quality with research on solutions and servitization. Three research questions are answered. The first question concerns the content of solution quality; the second deals with how firms can, with support from interventions, meet the new challenges that arise from solution provision; and the third question concerns how customers can be involved to achieve solution quality. The research questions are answered through five papers based on literature studies and empirical data. The papers contribute to an increased knowledge of solution quality and how firms can work to achieve it.The results of the thesis suggest that solution quality is built on seven quality dimensions: reliability, communicability, internal consistency, empathy, approachability, tangibility, and adaptability. In addition, knowledge of processes and customer relationships are two prerequisites for the concept. These dimensions and prerequisites are supported by interventions that can provide a change. However, it has become evident that whatever intervention is used must be related to the dimensions that are supposed to be improved. Furthermore, customer involvement is argued to be an intervention to support the prerequisites for solution quality, especially iv during the solution development. The results of this thesis extend the research on quality by increasing the knowledge of the solution quality concept and by changing the view of customers and their involvement during solution development.v SAMMANFATTNING Den här avhandlingen berör hur företag kan möjliggöra så att produkter och tjänster, integrerade i så kallade helhetslösningar, kan levereras med hög kval...

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How Business Customers Judge Solutions: Solution Quality and Value in Use

Abstract: Toossi, and the anonymous practitioner informants. They also thank the three anonymous JM reviewers and associate editor for their helpful suggestions on previous versions of the manuscript.

Cited by 313 publications

References 71 publications

Unlocking value from machines: business models and the industrial internet of things

Unlocking value from machines: business models and the industrial internet of things

The role of context, activities, and organization, in Value-Based Procurement

Understanding Solution Quality

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