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Service productivity gains through information and communication technology applications: A service marketing approach
Linköping University, Department of Management and Engineering, Industrial Marketing and Industrial Economics . Linköping University, The Institute of Technology.ORCID iD: 0000-0002-4081-9737
2008 (English)In: International Journal of Knowledge Management Studies, ISSN 1743-8268, Vol. 2, no 1, 96-114 p.Article in journal (Refereed) Published
Abstract [en]

Based on examples from Information and Communication Technology- (ICT-) based improvements in service productivity in the service organisations of three manufacturing firms, this paper argues for a service-centred approach towards productivity. When improving the productivity of industrial services, one of the three profitability-generating strategies, cost-efficiency, revenue effectiveness and capacity utilisation – or a combination – can be used. Increased standardisation and automation is a consequence of technological development, making capacity less a constraint in services and even if ICT applications often primarily improve cost efficiency, the elements improved vary depending on the solution implemented. Thus, ICT can enhance existing service processes and enable new service offerings to increase overall profitability. A productivity model for ICT-based services is presented and it is suggested that central coordination is often required in order to develop ICT-based services.

Place, publisher, year, edition, pages
2008. Vol. 2, no 1, 96-114 p.
Keyword [en]
service productivity, information and communication technology, ICT, service offerings, cost efficiency, revenue effectiveness, capacity utilisation, front office, back office
National Category
Production Engineering, Human Work Science and Ergonomics
URN: urn:nbn:se:liu:diva-12458DOI: 10.1504/IJKMS.2008.016440OAI: diva2:149
Original Publication: Christian Kowalkowski, Service productivity gains through information and communication technology applications: A service marketing approach, 2008, International Journal of Knowledge Management Studies, (2), 1, 96-114. Copyright: Inderscience Publishers Available from: 2008-09-05 Created: 2008-09-05 Last updated: 2014-04-14Bibliographically approved
In thesis
1. Managing the Industrial Service Function
Open this publication in new window or tab >>Managing the Industrial Service Function
2008 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

During the past decade, growing attention has been given to industrial service offerings in the marketing literature as well as in many manufacturing firms. This phenomenon is often described as a goods-services transition, in which companies increasingly turn to the provision of industrial services in order to achieve competitive advantage, such a closer customer relationships and higher profit margins. Industrial services span a wide range of offerings, from basic after-sales services to process-orientated solutions consisting of both services and capital goods. With industrial service offerings receiving increased attention as their importance is understood, the ability to manage the service business in a manufacturing context becomes ever more vital.

The overall purpose of this doctoral thesis is to describe and analyse how capital equipment manufacturing firms strategically manage their industrial service offerings in order to achieve long-term competitive advantage. This includes analysing how to organise the firm for the development and production of service, and, depending on the type of industrial service offering, what the requirements on the service processes are. Furthermore the role of information and communication technologies as enablers for new offerings and processes is analysed. The thesis consists of a compilation of five papers, two case descriptions and an extended summary. The research builds on a multiple case study of the service organisations of market-leading manufacturing firms. The main cases are based on in-depth studies at ITT Water & Wastewater and Toyota Material Handling Group.

The results suggest that, as the division between goods and services becomes ever more blurred, there is an increasing need for cooperation between the service and the product organisations. Applying a service logic means that the traditional division between goods sales and after-sales services becomes outdated. Instead, the customer relationship becomes the centre of the offering regardless of its combination of services and goods. Further, the infusion of service in manufacturing firms means that more service processes and interfaces have to be managed simultaneously.

Theoretically, this research contributes mainly to the fields of industrial marketing and service as a business logic. One contribution is the proposed typologies for industrial service offerings which make it possible to better understand the dynamics of service processes. Another important contribution of this research is the service function concept. Industrial services must not be equated with the activities of the industrial service organisation only. Although the service organisation most likely is the key entity, it is only one subset of the service function; sales product development, manufacturing, senior management, and other organisational entities, as well as external service providers and customers, are to be seen as part-time service functions that influence the offering. Compared to previously, competitive advantage through industrial service offerings is to a greater extent based on factors outside the service organisation, i.e. in other parts of the service function.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2008. 64 p.
Linköping Studies in Science and Technology. Dissertations, ISSN 0345-7524 ; 1198Dissertations from the International Graduate School of Management and Industrial Engineering, ISSN 1402-0793 ; 117
Industrial service offerings, service function, manufacturing firms, ICT, customer relationships, value
National Category
Other Mechanical Engineering
urn:nbn:se:liu:diva-12463 (URN)978-91-7393-846-4 (ISBN)
Public defence
2008-08-29, ACAS, Campus Valla, Linköpings universitet, Linköping, 13:15 (English)
Available from: 2008-09-09 Created: 2008-09-05 Last updated: 2014-04-14Bibliographically approved

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