The role of servitization success factors as firms change towards solution providers : A comparative case study
Virtanen, Tomi (2021-04)
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe2021042011117
https://urn.fi/URN:NBN:fi-fe2021042011117
Tiivistelmä
This study focuses on the servitization process of manufacturing companies and in the suc-cess factors that enable positive outcome in the servitization process. This is relevant to study as most of the servitization processes fail, even though than servitization process is seen as an ideal goal for all manufacturing companies looking to gain competitive advantage over competition and ensuring better profits through services. This combined with clear lack of study on this matter work as motivations to complete this study.
In this study we filled this gap by answering three research questions, which enabled me to shed light on success factors of servitization process. These research questions are: 1. What kind of process is servitization as a whole? 2.What is success in servitization process? 3. What factors can be identified from the servitization process and which of those are the most criti-cal ones that result in a successful servitization process? Chosen method for this study is lit-erature review combined with qualitative case study. In literature review I looked at the ser-vitization processes of companies combined with different levels of servitization, barriers in these processes and we also defined what success in servitization means. After this I was able to draft success factors that I tested in empirical set. This was done through comparative case study, where two case companies were chosen based on their success in servitization into solution providers. Interviews were conducted with representatives from these compa-nies and theory of success factors was tested. Also, annual reports were utilized especially when looking into success in services with these companies, and when illustrating the serviti-zation process of these companies. After both companies and their servitization processes were analysed individually, a comparative analysis was made, and results were gathered through this.
As a result of this study, I was able to compile five success factors that servitizing companies should look into when embarking on servitization journey. These factors are structural change of organization, culture & people within the organization, resources, capabilities, and the markets of servitizing company. I was also able to further strengthen the visual of serviti-zation journey as a continuum from more basic products supporting services into customers needs complying solutions.
This study contributes to the servitization literature by compiling success factors of servitiza-tion processes within one study, enabling future studies to further look into these factors. Also, the idea of servitization process as a linear continuum is further emphasized combined with the image of successful servitized company.
In this study we filled this gap by answering three research questions, which enabled me to shed light on success factors of servitization process. These research questions are: 1. What kind of process is servitization as a whole? 2.What is success in servitization process? 3. What factors can be identified from the servitization process and which of those are the most criti-cal ones that result in a successful servitization process? Chosen method for this study is lit-erature review combined with qualitative case study. In literature review I looked at the ser-vitization processes of companies combined with different levels of servitization, barriers in these processes and we also defined what success in servitization means. After this I was able to draft success factors that I tested in empirical set. This was done through comparative case study, where two case companies were chosen based on their success in servitization into solution providers. Interviews were conducted with representatives from these compa-nies and theory of success factors was tested. Also, annual reports were utilized especially when looking into success in services with these companies, and when illustrating the serviti-zation process of these companies. After both companies and their servitization processes were analysed individually, a comparative analysis was made, and results were gathered through this.
As a result of this study, I was able to compile five success factors that servitizing companies should look into when embarking on servitization journey. These factors are structural change of organization, culture & people within the organization, resources, capabilities, and the markets of servitizing company. I was also able to further strengthen the visual of serviti-zation journey as a continuum from more basic products supporting services into customers needs complying solutions.
This study contributes to the servitization literature by compiling success factors of servitiza-tion processes within one study, enabling future studies to further look into these factors. Also, the idea of servitization process as a linear continuum is further emphasized combined with the image of successful servitized company.