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Creating Business Offerings: the case of integrated solutions in manufacturing firms
Linköping University, Department of Management and Economics. Linköping University, The Institute of Technology.
Linköping University, Department of Management and Economics. Linköping University, The Institute of Technology.
2004 (English)In: Proceedings of the 20th Annual IMP Conference, Köpenhamn: IMP Group , 2004Conference paper, Published paper (Refereed)
Abstract [en]

Relationships have been discussed thoroughly in interorganizational relationship theories.However, little has been done to study the object of this interaction, that is, how the businessto business offering is designed in regard to the reality in which the company exists. Byproviding Integrated Solutions, the increased overall responsibility over a function leads to ahigher risk-taking for the supplier. The challenge is to succeed in creating a new offering thatincreases customer value instead of charging the customer for the risk taking. Well-managedcustomer relationships are a critical factor in the creation of Integrated Solutions offerings.They proved to add customer value by bringing an opportunity to deepen cooperation,identify elements delivering benefits, and changing sacrifices into benefits. In this regard,offerings of integrated solutions facilitate a shift from charging for service to sharing profitswith customers resulting from a more efficient running.

Place, publisher, year, edition, pages
Köpenhamn: IMP Group , 2004.
Keyword [en]
integrated solutions, offering, value, relationship, outsourcing
National Category
Social Sciences
Identifiers
URN: urn:nbn:se:liu:diva-23468Local ID: 2926OAI: oai:DiVA.org:liu-23468DiVA: diva2:243782
Conference
20th Annual Conference of the Industrial Marketing and Purchasing (IMP ) Group. Copenhagen, Denmark. 2-4 September 2004.
Available from: 2009-10-07 Created: 2009-10-07 Last updated: 2013-11-27
In thesis
1. The Business of Integrated Solutions
Open this publication in new window or tab >>The Business of Integrated Solutions
2005 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

The after-sales market is increasing in importance for many manufacturing firms. Sales of spare-parts and services is at the same time facing stiffer competitions from third-party suppliers. For many of these companies, the answer to this development has been to engage in the sales of integrates solutions, an offering that allows manufacturing firms to add customer value by including sophisticated products and services, activity specific knowledge and/or resources, and incentives based on successful customer operations. However, not all firms have succeeded in this endeavor and the main research question investigated in this licentiate thesis is: when and under which circumstances are certain integrated solutions preferable options to traditional sales of products and services?

The thesis is constituted of one cover paper and four appended papers. Although the individual aims of each paper vary, they all work together towards answering the main research question. The results of each have been synthesized and analyzed for this purpose in the cover paper. Paper 1 investigates three cases and highlights some important implications for firms moving towards integrated solutions. Among the implications identified is the need of an extended set of new competencies. The need for an increased customer-centric orientation is also acknowledged. Paper 2 suggest that the one of the important challenges facing these mentioned firms is creating value-adding offerings based on deepened relationships with their customers. Paper 3 expand on the discussion of the offering by providing a tentative conceptual model for buying ,integrated solutions. The paper is written from a customer perspective rather than taking the view of the supplier, which have been the most common perspective in the academic area of integrated solutions until now. Paper 4 addresses the issue of pricing the solution based on the performance of the supplying firm, the intent of this pricing model being increased performance and better cost coverage. A contingency framework is suggested as a way to analyze integrated solutions from this perspective. The cover paper gives special attention to the importance of supplier-customer relationships. It also returns to the main research question by suggesting that integrated solutions as a concept may be viewed from several perspectives and each perspective brings forth various organizational and offering options which may or may not be applicable under certain circumstances.

Place, publisher, year, edition, pages
Linköping: Linköpings universitet, 2005. 38 p.
Series
Linköping Studies in Science and Technology. Thesis, ISSN 0280-7971 ; 1151
National Category
Social Sciences
Identifiers
urn:nbn:se:liu:diva-24473 (URN)6589 (Local ID)91-85297-52-6 (ISBN)6589 (Archive number)6589 (OAI)
Available from: 2009-10-07 Created: 2009-10-07 Last updated: 2013-11-27

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Wikner, SarahAndersson, Pierre

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