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Octopus: Alfa Laval's launch of a new business concept based on performance
Linköping University, Department of Management and Economics. Linköping University, The Institute of Technology.
(English)Manuscript (preprint) (Other academic)
Abstract [en]

The innovation of a self-optimising control system for decanter centrifuges challenges Alfa Laval's traditional way of doing business. Instead of selling components, spare parts and service, the new technology makes it possible for Alfa Laval to create customer relationships based on performance optimisation and incentive contracts. An internal corporate venture, Octopus, has been created to launch the new technology and business concept. This paper describes and analysis the first stages of the development and launch of Octopus. Dedicated individuals from the beginning of the process and a highly supportive top management in the later stages have driven the on-going development and launch. The findings show how and why Alfa Laval moves into this new activity, which represents innovation and change for the company on a strategic, technological and market level.

National Category
Engineering and Technology
URN: urn:nbn:se:liu:diva-99928OAI: diva2:658904
Available from: 2013-10-23 Created: 2013-10-23 Last updated: 2013-10-23
In thesis
1. Towards integrated solutions: Alfa Laval and the wastewater industry
Open this publication in new window or tab >>Towards integrated solutions: Alfa Laval and the wastewater industry
2004 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

Manufacturing companies in the capital goods industry face opportunities and challenges to their traditionally used business model for selling products, spare parts and services. They are encountering increasing pressure to provide their customers with broader, more tailored solutions. With these integrated solutions, as they are referred to in this thesis, companies are combining services with products to address their customers' business needs, and focus on the delivery of performance.

The objective of this thesis is to address this fairly new concept of integrated solutions using Alfa Laval as a study case in a wastewater industry setting. The business and organisational implications of the move towards integrated solutions have been explored and the move characterised in the context of innovation literature. The thesis comprises five supporting chapters and four empirical papers. The first of these four papers explores and identifies incentives and new competence requirements for providing integrated solutions. The second paper highlights the influence that external elements such as changes in market structure have on providing integrated solutions. The third paper explores internal processes at Alfa Laval supporting a move towards integrated solutions. The fourth and final paper describes the development and launch of a self-optimising control system for the dewatering process, which is licensed out to customers, hence challenging Alfa Laval's traditional way of doing business.

The thesis links Alfa Laval's move towards integrated solutions with its capabilities in the areas of system integration, operational services, partnering and organisational competence, and its approach to customers. It also shows that Alfa Laval's move towards integrated solutions encompasses products, services, performance and organisational innovations.

Place, publisher, year, edition, pages
Linköping: Linköpings universitet, 2004. 59 p.
Dissertations from the International Graduate School of Management and Industrial Engineering, ISSN 1402-0793 ; 81Linköping Studies in Science and Technology. Thesis, ISSN 0280-7971 ; 40
National Category
Social Sciences
urn:nbn:se:liu:diva-22207 (URN)LiU-Tek-Lic-2004:40 (ISRN)1364 (Local ID)91-85295-23-X (ISBN)1364 (Archive number)1364 (OAI)
Available from: 2009-10-07 Created: 2009-10-07 Last updated: 2013-10-23

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Windahl, Charlotta
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