Value proposition

About: Value proposition is a research topic. Over the lifetime, 3582 publications have been published within this topic receiving 88855 citations.

The relationship between servitization and product customization strategies

Abstract: The purpose of this paper is to examine the relationship between product customization and servitization strategies, specifically the relationship between product customization strategy intensity and degree of servitization (offering of basic and/or advanced services) and the moderating role of product customization strategy alignment on that relationship.,The authors develop and test hypotheses through partial least squares path modeling to analyze data from the Sixth International Manufacturing Strategy Survey, involving 931 manufacturers in 22 countries.,The results indicate that customization strategy intensity is positively associated with the offering of basic and advanced services; these relationships are not moderated by customization strategy alignment.,Manufacturers pursuing product customization strategies may be especially well positioned to servitize, even those with misalignment in strategic choices. Paradoxically, while manufacturers of standard products might look at servitization as an attractive strategy to differentiate their value proposition, they appear to be less servitized than manufacturers pursuing product customization.,This is one of the first studies to examine how manufacturing strategy choices (intensity and alignment) influence the adoption of servitization strategies. The study introduces manufacturing strategy as a contingency factor that influences the adoption of servitization, answering calls for the study of servitization contingencies.

Building an Innovation Community

Abstract: OVERVIEW:Companies are increasingly using social media and other technologies to broaden the approach to idea generation and innovation both within and outside the walls of the organization. However, managers can tend to focus on installing the technology, rather than on designing a socio-technical system that can meet the organization's goals and foster authentic participation. In 2008, Pitney Bowes, a $5.4 billion provider of technology and services for mail and digital communications, initiated an effort to build an employee innovation community aimed at driving organic growth and fostering a culture of innovation among its 30,000 employees around the globe. The Pitney Bowes Employee Innovation Program team took a human-centered approach and used primary research and co-creation with individuals across all levels of the organizational hierarchy to design a program that both met company objectives and satisfied a value proposition for managers and employees. The resulting program delivered measurable va...

Towards a methodology to engineer industrial product-service system – Evidence from power and automation industry

Abstract: Manufacturing companies whose products have become increasingly commoditized are currently striving to identify innovative value propositions allowing them to re-position themselves in the market. This is gradually leading to a business shift from delivering traditional transaction-based, product-centric offering to the provision of integrated product-service systems (PSS). However, the number of companies failing in successfully pursue such a transition is still increasing. Consequently, Service Engineering (SE), a discipline concerned with the systematic development and design of services and product-services, is gaining particular interest in both the scientific and practitioner communities. This paper contributes to these fields by proposing a complete overview of the applicability of the SErvice Engineering Methodology (SEEM) in an industrial context. The SEEM aims at supporting companies approaching the introduction of PSSs in their portfolio and suggests a structured decision-making process to (i) define the PSS offering most aligned with company product(s) and customer needs, (ii) (re-)engineer the (existing) service delivery processes, and (iii) balance the external performance (e.g. customer satisfaction, delivery time, service cycle time) with the internal performance (i.e. efficiency) of the service delivery process. The noteworthy benefits achievable through the SEEM are illustrated through a real case at the industrial partner ABB – a multinational company providing power and automation solutions. The implementation of all the SEEM steps is thoroughly described, and the advantages experienced along with the difficulties encountered are highlighted. Managerial implications and the main gaps to address in future research are also discussed.