Pros and Cons of Servitization for the Company - Term Paper Example

It also proposes the implications of service-dominant logic for operation management. In addition, the paper is organized as follows: Introduction, Public service system, research method, discussion, and conclusion (Maull & Smith, 2014).

Public service system

Most researchers refer to servitization as a product-service transition that represents the transition of products to pure service offerings. The servitization phenomenon has led to manufacturing firms offering complex product-service systems. Their aim is therefore to generate high customer exchange value and enhance competition. However, the public service system evolves from several common themes. The first one is to understand that the growth of GDP, of industrialized economies, is determined by the provision of services. The second one is the concept of a firm’s offerings, being an integration of tangibles and intangibles. The last one is recognizing the change brought by the public service system on how customers consume, and firms produce. However, the public service system is categorized as product-oriented, result-oriented, and use-oriented services (Maull & Smith, 2014).

Research method

The servitization is usually under the developmental stages of research and, therefore, a case study is required to help in understanding the operational issues. An original equipment manufacturer in the UK was therefore used as a case organization study. The organization had lasted for five years and provided important information on Product-service transition (Maull & Smith, 2014). There was the use of triangulation in the case study which included qualitative interviews and analysis of data. These methods provided information used to illuminate public service system value propositions. 

Discussion

Various researchers have revealed several significant challenges of Public Service Systems for operations management. However, this paper contributes to Public Service System research by providing further insight into PSS offerings and operations management of the Product-service transition. In addition, the work of our research extends that of other researchers when determining service system design in a firm’s offerings (Maull & Smith, 2014). Through the identification of four value propositions, the results of this research show that many task designs exist in a complex product, services, or equipment.

This research shows that even those organizations that have serviced for a long time, do not consider service “as a bolt-on extra” to the products they offer. However, those that are new to servitization face a lot of challenges. Organizations need to recognize the implications for their staff’s competencies and resources when delivering the value propositions (Maull & Smith, 2014).

Conclusion

Through analyzing the findings from the case organization, various research propositions have reflected the implications for operations management of public service systems. However, this study has identified four nested value propositions for servitization. These propositions serve to enable in co-creating value with the customer. In addition, the propositions are recognized to have various substantial implications on the P-S transition for operations management. The analysis of this paper focuses on identifying value propositions in a serviced organization and the structural patterns relative to these value propositions. However, the findings of the paper also show the challenges faced by an organization that manages complex systems.

Template

Introduction:

1- Servitization is common among many manufacturing firms

2-Servitization is used in the provision of products due to stiff industrial market competition

3-Servitization has led to the introduction of complex design and delivery systems

4-Due to the complex design and delivery system it has become hard to manage and coordinate organization performance.

The 5-Our study aims at exploring servitization through the use of service-dominant logic.

Public service system:

1- Researchers define servitization as a product-service transition

2-Through servitization, manufacturing firms offer complex product-service systems

3-The aim of using servitization is to maximize customer exchange value

4-Servitization has evolved from several themes

5-Servitization is categorized as product-oriented, result-oriented, and use-oriented services.

Research method:

1- Servitization is under developmental stages of research

2-To understand the operational issues associated with servitization, there is the use of a case study.

3-An original equipment manufacturer in the UK was used as a case study.

4-There was the use of triangulation in the case study

5-Triangulation provided information for illuminating public service system value propositions.

Discussion:

1- The work of our research extends that of other researchers when determining service system design in a firm’s offerings.

2-Through identification of four value propositions, the results of this research how so that many task designs exist in a complex product, services, or equipment.

3-According to the research, organizations that have serviced for a long time, do not consider service “as a bolt-on extra” to the products they offer.

4-Organizations that are new to servitization face a lot of challenges

5-Organizations need to recognize the implications for their staff’s competencies and resources when delivering the value propositions.

Conclusion:

1- The case organization shows various research propositions that reflect on the implications for operations management of public service systems.

2-This study has identified four nested value propositions for servitization.

3-The nested value propositions have substantial implications on the P-S transition for operations management.

4-This paper identifies value propositions in a serviced organization and structural patterns relative to these value propositions.

5-The findings of the paper also show the challenges faced by an organization that manages complex systems.