Resource Realignment in Servitization

Tuomas Huikkola · Marko Kohtamäki · Rodrigo Rabetino

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Service and Product Innovation Business Strategies and Innovation Innovation and Knowledge Management

Abstract

OVERVIEW:When transitioning from a product-centered business model to one focusing on providing services and solutions, manufacturers must realign and reallocate resources to support the new business model. Based on a study of nine leading solution providers that have successfully transitioned from products to services, we demonstrate how manufacturers create new resources and organizational structures to facilitate co-creation of value with customers, leverage existing resources to develop new service products and markets, and systematically release non-core upstream resources to nurture downstream resources.

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References

1997Dynamic capabilities and strategic management 2003Evolving to a New Dominant Logic for Marketing 1995Handbook of Qualitative Research.1993The myopia of learning 1994Competing for the Future 2007Managing Firm Resources in Dynamic Environments to Create Value: Looking Inside the Black Box 1988Servitization of business: Adding value by adding services 2003Managing Resources: Linking Unique Resources, Management, and Wealth Creation in Family Firms

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