Research vs. Practice on Manufacturing Firms’ Servitization Strategies: A Gap Analysis and Research Agenda

Abstract

Servitization in the manufacturing industry implies a shift from an offer based mainly on standard goods, to a wider value proposition composed of solutions aimed at solving specific customers' problems, obtained by integrating tangible and intangible elements. The purpose of this paper is to investigate the servitization strategies of manufacturing firms, more specifically about: (i) how manufacturing companies move toward servitization (servitization pattern); (ii) how they achieve the capabilities needed; and (iii) which factors enable this transition. We did so by comparing the state of the art of academic research with a qualified sample of case studies of global companies that famously improved their competitiveness by shifting from products to solutions. The results show some gaps between research and practice, concerning in particular: the impact (either transformational or integrative) of servitization on the manufacturing organization; the role of financial resources in shaping the capability achievement strategy, particularly for external acquisitions, and; the role of servitization enablers poorly considered by the extant literature, such as time, leadership and continuity, operational excellence and digital technologies. These findings lead to the definition of seven formalized research directions, thus outlining an agenda for future research.

Manufacturing practices and servitization: The role of mass customization and product innovation capabilities

“…For example, Dell implemented servitization by adopting a customer-centric business model based on direct customer contact. The adoption of lean practices in supply chain management, the development of product customization capability, and operational excellence in manufacturing and logistics have been viewed as the main enablers for the business model (Perona et al, 2017). Caterpillar implemented servitization by offering integrated solutions encompassing a set of services and products.…”

Servitization in the automotive industry: How car manufacturers become mobility service providers

“…Services are increasingly taking the lead in the global economy by enabling both wealth production and value-adding. Although in most OECD countries, the service component of GDP has reached 70% of total gross value added and about 50-70% of employment, among traditional manufacturing companies, service offerings have usually been seen as a necessary evil (Perona, Saccani, & Bacchetti, 2017).…”

Penyediaan Barang Milik Negara Berbasis Biaya Kepemilikan Total

“…Beberapa penelitian terdahulu menjelaskan bahwa Konsep total cost ownership merupakan pengembangan dari konsep activity based costing (Ellram & Siferd, 1998;Johnson & Kaplan, 1987;Perona, Saccani, & Bacchetti, 2017). Model total cost ownership sudah mempertimbangkan biaya pembelian dan operasional serta menghitung aspek kualitas dan biaya pemeliharaan (Prabhakar & Sandborn, 2012).…”