Developing a Modular Service Architecture for E-store Supply Chains: The Small- and Medium-Sized Enterprise Perspective

Abstract

Servitization and productization lead to offerings and solutions that combine tangible products, standardized base services, and customized services. These tailored service offerings or solutions call for new modular service architectures and service process design approaches to complement traditional service and product design methods. In this paper we suggest a modular service architecture framework to develop tailored service solutions. We use the framework as a lens to analyze three Finnish small- and medium-sized enterprises in the retail industry offering an e-store to their customers. We identify and define the order-delivery process of the case e-stores' supply chain; the modularity and modularization principles of the order-delivery process; and constructs such as service process modularization, modular reuse, and modular variation as well as their interrelationships. For practitioners, we provide a real-life example of how modular service design can be adopted when developing new and modified service encounter processes in the context of the less studied, small e-stores' order-delivery process.