Business Model |
Modification of the business model |
The obstacle in creating, developing, and providing value propositions to customers. |
Baines et al. (2009b); Kowalkowski et al. (2015)Kowalkowski, C., Windahl, C., Kindström, D., & Gebauer, H. (2015). What service transition? Rethinking established assumptions about manufacturers’ service-led growth strategies. Industrial Marketing Management, 45, 59-69. http://dx.doi.org/10.1016/j.indmarman.2015.02.016. http://dx.doi.org/10.1016/j.indmarman.20...
; Zhang & Banerji (2017)Zhang, W., & Banerji, S. (2017). Challenges of servitization: a systematic literature review. Industrial Marketing Management, 65, 217-227. http://dx.doi.org/10.1016/j.indmarman.2017.06.003. http://dx.doi.org/10.1016/j.indmarman.20...
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Customized solutions |
Difficulty to succeed with customized solutions. |
Kowalkowski et al. (2015); Reim et al. (2019)Reim, W., Sjödin, D. R., & Parida, V. (2019). Servitization of global service network actors - a contingency framework for matching challenges and strategies in service transition. Journal of Business Research, 104, 461-471. http://dx.doi.org/10.1016/j.jbusres.2019.01.032. http://dx.doi.org/10.1016/j.jbusres.2019...
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Resource management |
Lack of resources needed in the organization. |
Alghisi & Saccani (2015) |
Organizational Structure |
Cultural |
Resistance to the needed cultural change and changing clients’ mentality. |
Neely (2008); Dahmani et al. (2016)Dahmani, S., Boucher, X., Peillon, S., & Besombes, B. (2016). A reliability diagnosis to support servitization decision-making process. Journal of Manufacturing Technology Management, 27(4), 502-534. http://dx.doi.org/10.1108/JMTM-06-2015-0044. http://dx.doi.org/10.1108/JMTM-06-2015-0...
; Zhang & Banerji (2017)Zhang, W., & Banerji, S. (2017). Challenges of servitization: a systematic literature review. Industrial Marketing Management, 65, 217-227. http://dx.doi.org/10.1016/j.indmarman.2017.06.003. http://dx.doi.org/10.1016/j.indmarman.20...
; Nudurupati et al. (2016)Nudurupati, S. S., Lascelles, D., Wright, G., & Yip, N. (2016). Eight challenges of servitisation for the configuration, measurement, and management of organisations. Journal of Service Theory and Practice, 26(6), 745-763. http://dx.doi.org/10.1108/JSTP-02-2015-0045. http://dx.doi.org/10.1108/JSTP-02-2015-0...
; Ambroise et al. (2018)Ambroise, L., Prim-Allaz, I., & Teyssier, C. (2018). Financial performance of servitized manufacturing firms: a configuration issue between servitization strategies and customer-oriented organizational design. Industrial Marketing Management, 71, 54-68. http://dx.doi.org/10.1016/j.indmarman.2017.11.007. http://dx.doi.org/10.1016/j.indmarman.20...
; Yan et al. (2019)Yan, K., Cheng, T. E., Li, G., & Wei, Z. (2019). Overcoming the service paradox by leveraging the organizational design and cultural factors: a combined configuration and contingency approach. IEEE Transactions on Engineering Management, 68(2), 498-512. http://dx.doi.org/10.1109/TEM.2019.2911105. http://dx.doi.org/10.1109/TEM.2019.29111...
; Dmitrijeva et al. (2020)Dmitrijeva, J., Schroeder, A., Ziaee Bigdeli, A., & Baines, T. (2020). Context matters: how internal and external factors impact servitization. Production Planning and Control, 31(13), 1077-1097. http://dx.doi.org/10.1080/09537287.2019.1699195. http://dx.doi.org/10.1080/09537287.2019....
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Communicating and training |
Lack of adequate communication and training practices to present customers with solutions that meet their needs and expectations. |
Baines et al. (2009b); Reim et al. (2019)Reim, W., Sjödin, D. R., & Parida, V. (2019). Servitization of global service network actors - a contingency framework for matching challenges and strategies in service transition. Journal of Business Research, 104, 461-471. http://dx.doi.org/10.1016/j.jbusres.2019.01.032. http://dx.doi.org/10.1016/j.jbusres.2019...
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Commitment and leadership |
Lack of commitment and awareness of senior management negatively impacts the involvement and attitudes. |
Alghisi & Saccani (2015); Kowalkowski et al. (2017b)Kowalkowski, C., Gebauer, H., Kamp, B., & Parry, G. (2017b). Servitization and deservitization: overview, concepts, and definitions. Industrial Marketing Management, 60, 4-10. http://dx.doi.org/10.1016/j.indmarman.2016.12.007. http://dx.doi.org/10.1016/j.indmarman.20...
; Dmitrijeva et al. (2020)Dmitrijeva, J., Schroeder, A., Ziaee Bigdeli, A., & Baines, T. (2020). Context matters: how internal and external factors impact servitization. Production Planning and Control, 31(13), 1077-1097. http://dx.doi.org/10.1080/09537287.2019.1699195. http://dx.doi.org/10.1080/09537287.2019....
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Development of services capacity and methods |
Lack of distinction between service design and product design. Service design features are required to implement the service transition strategy. |
Alghisi & Saccani (2015); Zhang & Banerji (2017)Zhang, W., & Banerji, S. (2017). Challenges of servitization: a systematic literature review. Industrial Marketing Management, 65, 217-227. http://dx.doi.org/10.1016/j.indmarman.2017.06.003. http://dx.doi.org/10.1016/j.indmarman.20...
; Dmitrijeva et al. (2020)Dmitrijeva, J., Schroeder, A., Ziaee Bigdeli, A., & Baines, T. (2020). Context matters: how internal and external factors impact servitization. Production Planning and Control, 31(13), 1077-1097. http://dx.doi.org/10.1080/09537287.2019.1699195. http://dx.doi.org/10.1080/09537287.2019....
|
Supplier and Customer |
Integration of the actors |
Low integration between customers and suppliers: generates deprivation in the exchange of information between actors, making it difficult to solve problems. |
Nenonen et al. (2014); Nudurupati et al. (2016)Nudurupati, S. S., Lascelles, D., Wright, G., & Yip, N. (2016). Eight challenges of servitisation for the configuration, measurement, and management of organisations. Journal of Service Theory and Practice, 26(6), 745-763. http://dx.doi.org/10.1108/JSTP-02-2015-0045. http://dx.doi.org/10.1108/JSTP-02-2015-0...
; Zhang & Banerji (2017)Zhang, W., & Banerji, S. (2017). Challenges of servitization: a systematic literature review. Industrial Marketing Management, 65, 217-227. http://dx.doi.org/10.1016/j.indmarman.2017.06.003. http://dx.doi.org/10.1016/j.indmarman.20...
; Ambroise et al. (2018)Ambroise, L., Prim-Allaz, I., & Teyssier, C. (2018). Financial performance of servitized manufacturing firms: a configuration issue between servitization strategies and customer-oriented organizational design. Industrial Marketing Management, 71, 54-68. http://dx.doi.org/10.1016/j.indmarman.2017.11.007. http://dx.doi.org/10.1016/j.indmarman.20...
; Aminoff & Hakanen (2018)Aminoff, A., & Hakanen, T. (2018). Implications of product-centric servitization for global distribution channels of manufacturing companies. International Journal of Physical Distribution & Logistics Management, 48(10), 1020-1038. http://dx.doi.org/10.1108/IJPDLM-06-2018-0231. http://dx.doi.org/10.1108/IJPDLM-06-2018...
; Reim et al. (2019)Reim, W., Sjödin, D. R., & Parida, V. (2019). Servitization of global service network actors - a contingency framework for matching challenges and strategies in service transition. Journal of Business Research, 104, 461-471. http://dx.doi.org/10.1016/j.jbusres.2019.01.032. http://dx.doi.org/10.1016/j.jbusres.2019...
|
Customer portfolio |
Low utilization of factors related to the process. |
Neely (2008); Alghisi & Saccani (2015)Alghisi, A., & Saccani, N. (2015). Internal and external alignment in the servitization journey - overcoming the challenges. Production Planning and Control, 26(14-15), 1219-1232. http://dx.doi.org/10.1080/09537287.2015.1033496. http://dx.doi.org/10.1080/09537287.2015....
; Dmitrijeva et al. (2020)Dmitrijeva, J., Schroeder, A., Ziaee Bigdeli, A., & Baines, T. (2020). Context matters: how internal and external factors impact servitization. Production Planning and Control, 31(13), 1077-1097. http://dx.doi.org/10.1080/09537287.2019.1699195. http://dx.doi.org/10.1080/09537287.2019....
|
Co-production and Co-creation |
Lack of the integrated service resources needed to design and deliver product and service offerings. |
Alghisi & Saccani (2015); Green et al. (2017)Green, M. H., Davies, P., & Ng, I. C. L. (2017). Two strands of servitization: a thematic analysis of traditional and customer co-created servitization and future research directions. International Journal of Production Economics, 192, 40-53. http://dx.doi.org/10.1016/j.ijpe.2017.01.009. http://dx.doi.org/10.1016/j.ijpe.2017.01...
|
Supply network |
Difficulty in analyzing needs and defining partnerships. |
Alghisi & Saccani (2015); Nudurupati et al. (2016)Nudurupati, S. S., Lascelles, D., Wright, G., & Yip, N. (2016). Eight challenges of servitisation for the configuration, measurement, and management of organisations. Journal of Service Theory and Practice, 26(6), 745-763. http://dx.doi.org/10.1108/JSTP-02-2015-0045. http://dx.doi.org/10.1108/JSTP-02-2015-0...
|
Strategy and Market |
Strategy vision |
Problems related to strategy in the transition of services may involve resources and competencies of the manufacturers linked to the development of the services business. |
Ambroise et al. (2018); Reim et al. (2019)Reim, W., Sjödin, D. R., & Parida, V. (2019). Servitization of global service network actors - a contingency framework for matching challenges and strategies in service transition. Journal of Business Research, 104, 461-471. http://dx.doi.org/10.1016/j.jbusres.2019.01.032. http://dx.doi.org/10.1016/j.jbusres.2019...
; Dmitrijeva et al. (2020)Dmitrijeva, J., Schroeder, A., Ziaee Bigdeli, A., & Baines, T. (2020). Context matters: how internal and external factors impact servitization. Production Planning and Control, 31(13), 1077-1097. http://dx.doi.org/10.1080/09537287.2019.1699195. http://dx.doi.org/10.1080/09537287.2019....
|
Competition |
Extending service offerings can lead manufacturers to compete with service network partners who already offer services to customers. |
Alghisi & Saccani (2015); Dmitrijeva et al. (2020)Dmitrijeva, J., Schroeder, A., Ziaee Bigdeli, A., & Baines, T. (2020). Context matters: how internal and external factors impact servitization. Production Planning and Control, 31(13), 1077-1097. http://dx.doi.org/10.1080/09537287.2019.1699195. http://dx.doi.org/10.1080/09537287.2019....
|
Relationship of product with the company’s brand |
Successful branding can become an obstacle in introducing extensions in the services business model. |
Nenonen et al. (2014); Alghisi & Saccani (2015)Alghisi, A., & Saccani, N. (2015). Internal and external alignment in the servitization journey - overcoming the challenges. Production Planning and Control, 26(14-15), 1219-1232. http://dx.doi.org/10.1080/09537287.2015.1033496. http://dx.doi.org/10.1080/09537287.2015....
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Market |
The market behavior can generate uncertainties regarding the new business model and problems related to new services. |
Neely (2008); Iriarte et al. (2019)Iriarte, I., Hoveskog, M., Alberdi, A., Anaya, M., & Mazmela, M. (2019). To be or not to be: the servitization dilemma and the role of Design. The Design Journal, 22(1), 37-49. http://dx.doi.org/10.1080/14606925.2019.1595849. http://dx.doi.org/10.1080/14606925.2019....
; Dmitrijeva et al. (2020)Dmitrijeva, J., Schroeder, A., Ziaee Bigdeli, A., & Baines, T. (2020). Context matters: how internal and external factors impact servitization. Production Planning and Control, 31(13), 1077-1097. http://dx.doi.org/10.1080/09537287.2019.1699195. http://dx.doi.org/10.1080/09537287.2019....
|
Revenue, price, and sale |
Difficulty in pricing offers. |
Kowalkowski et al. (2015); Nudurupati et al. (2016)Nudurupati, S. S., Lascelles, D., Wright, G., & Yip, N. (2016). Eight challenges of servitisation for the configuration, measurement, and management of organisations. Journal of Service Theory and Practice, 26(6), 745-763. http://dx.doi.org/10.1108/JSTP-02-2015-0045. http://dx.doi.org/10.1108/JSTP-02-2015-0...
; Reim et al. (2019)Reim, W., Sjödin, D. R., & Parida, V. (2019). Servitization of global service network actors - a contingency framework for matching challenges and strategies in service transition. Journal of Business Research, 104, 461-471. http://dx.doi.org/10.1016/j.jbusres.2019.01.032. http://dx.doi.org/10.1016/j.jbusres.2019...
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Decision making |
Lack of knowledge of manufacturers’ competence impacts directly decision making. |
Nenonen et al. (2014); Alghisi & Saccani (2015)Alghisi, A., & Saccani, N. (2015). Internal and external alignment in the servitization journey - overcoming the challenges. Production Planning and Control, 26(14-15), 1219-1232. http://dx.doi.org/10.1080/09537287.2015.1033496. http://dx.doi.org/10.1080/09537287.2015....
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Knowledge Management |
Difficulty in implementing the knowledge management system. |
Alghisi & Saccani (2015) |