Strategies for deploying information services offerings in the B2B capital goods industry

Abstract

Objective of the Study:

The objective of the study is to analyze how can manufacturing-oriented organizations transform their business through deploying value-based information service offerings to complement and enhance their traditional offering, and what factors need to be considered to facilitate a successful transition. In addition, the study aims to outline implications for strategy implementation and the prevailing manufacturing-oriented business model in the B2B capital goods industry context.

Methodology:

The study was conducted as a qualitative, intrinsic single-case study. Research data was collected through semi-structured interviews in the case company and the case SBU. The analysis and interpretation of the data followed a systematic combining approach, best characterized as 'abductive'. A theoretical framework constructed on the basis of the literature review established the sensitizing concepts guiding the analysis and interpretation process.

Findings and Conclusions:

The results suggest that a key determinant in successful deployment of an information services strategy is the sequential development of service-oriented microfoundations for dynamic capabilities in the areas of enhancing and maintaining market orientation (sensing capabilities); developing service strategies, service-oriented business models, and value-focused service offerings (seizing capabilities); as well as aligning organizational structures, human resources and corporate culture, and reshaping the firm's value network (reconfiguring capabilities).

In particular, establishing a platform for systematic, institutionalized generation of value knowledge is crucial, and constitutes the foundation for all further value-focused activities. Moreover, adopting an end-to-end view of customer relationships would be beneficial in aligning management of the customer relationship portfolio with the relational nature of service business. All decision-making concerning customers should be based on optimizing long-term value for the firm and the customer, and coordinated across all customer-facing functions of the firm.

Finally, the findings indicate that the development of new value-focused service offerings should be separated from product development, to enable better consideration of the unique characteristics of service offerings. While a bi-directional link to the product development process should be maintained, decision metrics and decision-making criteria optimized for service offerings are essential in facilitating the co-existence of manufacturing and service logics within the firm.