Provision Of Advanced Services Research Articles

Manufacturer's servitization level and financial performance: the role of risk management

PurposeThe objective of this research is to investigate the impact of offering product-linked services on the effectiveness of risk management and, subsequently, on financial performance.Design/methodology/approachThe investigation is based on an empirical analysis employing structural equation modeling (SEM) and cross-industry and multi-country survey data of 307 companies. The theorization is guided by the information processing theory (IPT).FindingsConsidering the basic and advanced classification of services, the analysis suggests that only the provision of advanced services influences the effectiveness of risk management. Specifically, the provision of advanced services strengthens the preventive dimension of risk management. Surprisingly, the analysis reveals a negative direct impact of preventive risk management on financial performance. Preventive risk management, however, indirectly enhances financial performance by supporting reactive risk management.Practical implicationsFor practitioners, the research suggests a positive impact of servitization in a long term rather than in form of instant financial benefits. The research attempts to highlight the specific role of supply chain risk management (SCRM) through which servitization has a positive impact on financial performance.Originality/valueAlthough there are assumptions about both reduction and increase in risk when manufacturers offer services, the extant literature lacks an empirical investigation on the association between servitization and the effectiveness of risk management. This study addresses the stated gap and offers novel insights into the role of SCRM in the performance consequences of servitization.

Quantitative Modelling of the Value of Data for Manufacturing SMEs in Smart Service Provision

The provision of advanced services becomes a relevant differentiation for manufacturing companies, in particular for SMEs (small and medium-sized enterprises). These services, also referred to as smart services, require the collection and processing of data from equipment, customers, and processes, as well as the development of analytics models and the interpretation of their results for improved service value propositions. These steps require significant engagement of the firms in terms of technical and human resources, skills, and new types of value creation processes, which is a major hurdle especially for SMEs. As the value that can be achieved when leveraging the information inherent in the data is not known a priori, the enterprises are not sufficiently informed for taking the decision to engage. Consequently, they are missing out on relevant business opportunities due to a lack of quantitative models for assessing the value of data. In this paper, we discuss the existing literature on data valuation models and explore the state of practice through an interview-based field study. We develop a model for the utility-based valuation of data that helps companies expand their fund of knowledge and skills about the value of their data and thus make better-informed investment decisions. A simulation-based model is developed to support companies in this assessment by providing quantitative insights in the value potential of the data in various use cases. This model opens a series of new research questions for the further elaboration of the data valuation models.

Community pharmacy may need to 'pause' advanced services, warns lead negotiator

Community pharmacy contractors in England may need to “pause” provision of advanced services to manage capacity and demand, the chief executive of the Pharmaceutical Services Negotiating Committee (PSNC) has told The Pharmaceutical Journal. In an interview on 23 March 2022, Janet Morrison warned that without an uplift in funding before the end of the ‘Community […]

Facilitating Servitization in Manufacturing Firms: The Influence of Strategic Orientation

Servitization has significant implications for the sustainable development of manufacturing, the economy, and the environment. However, it does not always produce returns as the firms expect, which may discourage them from engaging in this transition. In this study, we examine the facilitating effects of two dimensions of strategic orientation (i.e., technology and market orientation) on two types of servitization (i.e., basic and advanced service provision), and further investigate the performance impacts of these servitization types contingent on firm size. By conducting an empirical study, using survey data comprising 210 samples, we confirm that both technology and market orientation are positively related to basic and advanced service provision. Moreover, while they have equal effects on basic services, market orientation is more important than technology orientation for providing advanced services. We also find that, for basic services, these two strategic orientations function independently, whereas they reinforce each other in the provision of advanced services. Finally, the relationship between servitization and firm performance is contingent on the size of the firm. Our results show that small firms can benefit from providing basic services, rather than advanced services, while only advanced services can improve the performance of large firms further.

Servitization in global markets: role alignment in global service networks for advanced service provision

This study investigates how global manufacturers offer advanced services, such as outcome‐based contracts, to global customers. Offering advanced services requires companies to engage in and manage win–win collaborations with a diverse set of service network partners. However, there is currently a lack of insights into the value co‐creation challenges faced by manufacturers’ R&D units and their service network partners. Equally, there is a pressing need for roles to be properly aligned when offering advanced services in global markets. Based on 34 exploratory interviews with respondents from two manufacturers and their six globally dispersed front‐end service network partners, this study identifies diverse co‐creation challenges related to the provision of advanced services in global markets. The results show that complex collaborations of this nature often do not lead to win–win relationships but rather to less understood win–lose or lose–win scenarios. Our proposed framework unpacks how to manage value co‐creation challenges and establish win–win relationships through role alignment. This study’s findings show that the successful provision of advanced services requires manufacturers to play the role of global service orchestrators and service network partners to act as global service integrators. Thus, role alignment provides greater latitude to establish a joint sphere of value co‐creation for back‐end and front‐end actors. We conclude by discussing this paper’s theoretical and practical contributions to the emerging literature on servitization in global markets and global service networks.

Industry 5.0 Transition for an Advanced Service Provision

Industry 5.0 Transition for an Advanced Service Provision

Servitization and supply chain integration: An empirical analysis

Supply chain literature highlights the importance of the role of supply chain partners in a manufacturer's journey towards servitization. However, there is scarce empirical research seeking to explain supply chain level factors that enable servitization. Using resource dependence theory, we argue that servitization orientation encourages organizations to enhance supplier, internal, and customer integration (three dimensions of supply chain integration) which in turn enhance servitization (basic and advanced service provision) ultimately affecting firm performance. Covariance-based structural equation modelling is applied to test the hypotheses using data of 307 manufacturing companies obtained from the sixth version of International Manufacturing Strategy Survey. Empirical examination provides evidence that servitization oriented firms enhance internal integration and the integration with key suppliers and customers. However, there is an uneven relationship between firm's integrative practices with suppliers and customers and the provision of basic and advanced services such that enhanced provision of basic services requires more supplier integration while enhanced provision of advanced services requires more customer integration. Also, the performance implications of different types of service provision are found to be unequal. These findings suggest that servitization oriented firms need to improve a specific dimension of supply chain integration to enhance a particular type of service provision. The paper makes an initial attempt to empirically explore the enabling role of supply chain integration in facilitating servitization.

Community pharmacy advanced adherence services for children and young people with long-term conditions: A cross-sectional survey study.

Objective:The aim of this study was to investigate the provision of community pharmacy services to children and young people with a focus on advanced services such as medicines use review. Perceptions and experiences of community pharmacists, pharmacy staff, young people and their parents or carers on the provision of such services were also explored.Methods:Four different cross-sectional, self-administered questionnaires were distributed in parallel to pharmacists, pharmacy staff members, children and young people and parents in the United Kingdom.Results:An outline of pharmacist’s current involvement with children and young people was provided by 92 pharmacists. A different group of 38 community pharmacists and 40 non-pharmacist members of pharmacy staff from a total of 46 pharmacies provided information and views on the conduct of Medicines use review with children and young people. Experiences of advanced pharmacy service provision were collected from 51 children and young people and 18 parents. Most pharmacists offered public health advice to children and young people (73/92; 79.3%) and even more (83/92; 90.2%) reported that they often interacted with children and young people with long-term condition. Despite their high levels of interaction, and a majority opinion that medicines use reviews could benefit children (35/38; 92.1%), the number of pharmacies reporting to have conducted medicines use reviews with children was low (5/41). Pharmacists perceived the main barriers to recruitment as consent (17/29; 58.6%), guideline ambiguity (14/29; 48.3%) and training (13/29; 44.8%). A considerable proportion pharmacists (12/29; 41.4%) and other personnel (14/33; 42.4%) working in community pharmacies were unaware that children were potentially eligible for medicines use reviews. Only 29.4% of the 51 children and young people participants had received advice about their long-term condition from a pharmacist and the majority (46/51; 90.2%) had not taken part in an advanced service focused on adherence.Conclusions:While general engagement with children and young people appears high from the pharmacist’s perspective, advice specific to children and young people with long-term conditions and the provision of advanced services in this group remains a challenge.

Servitization in the automotive industry: How car manufacturers become mobility service providers

AbstractThe automotive industry, as other manufacturing industries, has evolved from competing on discrete transactions to relational agreements with customers. While previous literature calls for further analysis of the observed heterogeneity found across servitized manufacturing industries, this article contextualizes the analysis in the automotive industry. Servitization follows a sequence of stages, from offering basic and intermediate services, to new business models based on the provision of advanced services to customers. As the advanced services are related to core competencies of the car manufacturers, complex collaborative arrangements are the primary market strategy choice. This article demonstrates the challenges and opportunities related to such choices, over a set of internal and external categories and along the servitization journey.

Relational governance strategies for advanced service provision: Multiple paths to superior financial performance in servitization

The ability of manufacturing companies to offer advanced services and achieve superior financial performance remains an open question in the servitization literature. One central question relates to how providers govern customer relationships to realize profits through servitization. This study addresses this question by unraveling the complex relations between advanced service provision, relational governance strategies, and the financial performance of manufacturing firms. Drawing on a dataset of 50 Swedish advanced service providers, this study uses a configurational comparative method—namely, fuzzy-set qualitative comparative analysis (fsQCA)—to identify the influence of configurations of governance conditions (i.e., service innovation, perceived switching costs, the attractiveness of alternatives, and explicit contracts) on firm performance. This study contributes through the identification of three alternative governance strategies that enable advanced service providers to benefit from service provision: 1) innovation governance strategy (high service innovation, low attractiveness of alternatives, and low use of explicit contracts); 2) relational governance strategy (high service innovation, high perceived switching costs, and low use of explicit contracts); and 3) market-based governance strategy (high service innovation, low perceived switching costs, high attractiveness of alternatives, and high use of explicit contracts). These results enrich the literature on servitization and advanced services by reflecting the need to apply diverse relational governance strategies. The results suggest multiple paths to superior financial performance.

Independent distributors in servitization: An assessment of key internal and ecosystem-related problems

Independent distributors (IDs), just as equipment manufacturers, have the potential to initiate a transition towards the provision of advanced services. However, the internal and ecosystem-related problems experienced by IDs during servitization differ due to their distinct organizational structure. The purpose of this study is therefore to uncover problems faced by servitizing IDs during transition towards provision of advanced services, a topic which is still scarcely covered in the literature. Using an abductive research approach, we identify three overarching groups of servitization problems specific to IDs: (1) conflicting interests of key stakeholders; (2) misalignment between distribution of managerial attention and servitization strategy; and (3) ineffective knowledge management within the ecosystem. To diagnose these problems, we propose a servitization-readiness decision tree that allows IDs to pinpoint hindering factors before embarking on a servitization journey. In so doing, we provide a starting point for identifying and describing criteria for assessing IDs' servitization readiness.

High-Speed and Uninterrupted Communication for High-Speed Trains by Ultrafast WDM Fiber–Wireless Backhaul System

We developed a high-speed and handover-free communication network for high-speed trains (HSTs) using an ultrafast and switchable wavelength-division multiplexing fiber–wireless backhaul system in the W band. We successfully transmitted approximately 20-Gb/s and 10-Gb/s signals over the switched fiber–wireless links in the downlink and uplink directions, respectively. An ultrafast radio-cell switching of less than 10 μs was experimentally demonstrated in both downlink and uplink directions. Moreover, the possibility of connecting a central station to many remote radio cells was evaluated, confirming that an uninterrupted communication network up to several tens of kilometers can be achieved for HSTs. The proposed system can overcome the current challenges in mobile networks and can provide a potential solution for the provision of advanced services to users on HSTs in future 5G and beyond networks.

Assessment of attribute-based credentials for privacy-preserving road traffic services in smart cities

Smart cities involve the provision of advanced services for road traffic users. Vehicular ad hoc networks (VANETs) are a promising communication technology in this regard. Preservation of privacy is crucial in these services to foster their acceptance. Previous approaches have mainly focused on PKI-based or ID-based cryptography. However, these works have not fully addressed the minimum information disclosure principle. Thus, questions such as how to prove that a driver is a neighbour of a given zone, without actually disclosing his identity or real address, remain unaddressed. A set of techniques, referred to as Attribute-Based Credentials (ABCs), have been proposed to address this need in traditional computation scenarios. In this paper, we explore the use of ABCs in the vehicular context. For this purpose, we focus on a set of use cases from European Telecommunications Standards Institute (ETSI) Basic Set of Applications, specially appropriate for the early development of smart cities. We assess which ABC techniques are suitable for this scenario, focusing on three representative ones—Idemix, U-Prove and VANET-updated Persiano systems. Our experimental results show that they are feasible in VANETs considering state-of-the-art technologies, and that Idemix is the most promising technique for most of the considered use cases.

Using gamification to transform the adoption of servitization

Increasingly, manufacturing organizations compete by developing product-service systems rather than offering products alone. To transform themselves into providers of advanced services, however, product-centric manufacturing firms need to overcome a range of barriers. While previous studies have highlighted the teaching/learning potential of ‘gamification’ (the use of ideas and techniques found in game-playing), the opportunities to harness this approach to help tackle such barriers have yet to be fully realized. Our study extends the debate by integrating established frameworks relating to emotional mechanics of gamification with the adoption of advanced services, arguing that such mechanics can facilitate and strengthen companies' transformation into advanced-service providers. Based on a systematic analysis of nearly 90 selected publications, we develop six conceptual propositions to explore how gamification can aid the transformation process. Our findings will help both practitioners and researchers apply emotional mechanics of gamification when seeking to address different hurdles hindering the development and provision of advanced services.

The significance of digital data systems for smart city policy

Our planet is gradually moving towards an urbanized world. Modern urban agglomerations tend to turn nowadays into advanced information hubs supporting a smart management of dynamic urban systems. The currently popular notion of ‘smart cities’ aims to provide a new perspective for sustainable and high-performance strategies of city stakeholders in our ‘urban century’. In this context, digital information technology provides a new tool for efficient and effective management and planning of urban space, inter alia in the field of transportation, environment, public facilities or advanced service provision to citizens. This paper aims to offer, first, a concise overview of the emerging opportunities of information and communication technology (ICT) for smart urban policy; digital technology in particular, appears to provide novel pathways for modern planning strategies in smart cities. Against this background, the paper sketches out the complex force field of global urbanisation phenomena and highlights the data and information needs for strategic planning of cities (using inter alia as a framework the so-called ‘urban piazza’ strategy framework). Secondly, various new decision support tools that are currently emerging and that offer a new promising scope for handling complex urban management issues (for instance, on accessibility, congestion, safety or sustainability) are briefly presented. And finally, the potential of such digital data systems for urban management and policy is concisely illustrated by means of some recent applications in the area of smartphone data systems. The paper concludes with a discussion of the challenges ahead for urban policy, inter alia by paying attention to institutional and governance aspects of ‘big digital data’ management in urban systems.

Capabilities for advanced services: A multi-actor perspective

Servitization involves manufacturers developing service offerings to grow revenue and profit. Advanced services, in particular, can facilitate a more service-focused organization and impact customers' business processes significantly. However, approaches to servitization are often discussed solely from the manufacturer's perspective; overlooking the role of other network actors. Adopting a multi-actor perspective, this study investigates manufacturer, intermediary and customer perspectives to identify complementary and competing capabilities within a manufacturer's downstream network, required for advanced services. Interviews were conducted with 24 senior executives in 19 UK-based manufacturers, intermediaries and customers across multiple sectors. The study identified six key business activities, within which advanced services capabilities were grouped. The unique and critical capabilities for advanced services for each actor were identified as follows: manufacturers; the need to balance product and service innovation, developing customer-focused through-life service methodologies and having distinct, yet synergistic product and service cultures; intermediaries, the coordination and integration of third party products/services; customers, co-creating innovation and having processes supporting service outsourcing. The study is unique in highlighting the distinct roles of different actors in the provision of advanced services and shows that they can only be developed and delivered by the combination of complex interconnected capabilities found within a network.

A through-life costing methodology for use in product–service-systems

Availability-based contracts which provide customers with the use of assets such as machines, ships, aircraft platforms or subsystems like engines and avionics are increasingly offered as an alternative to the purchase of an asset and separate support contracts. The cost of servicing a durable product can be addressed by Through-life Costing (TLC). Providers of advanced services are now concerned with the cost of delivering outcomes that meet customer requirements using combinations of assets and activities via a Product Service System (PSS). This paper addresses the question: To what extent are the current approaches to TLC methodologically appropriate for costing the provision of advanced services, particularly availability, through a PSS? A novel methodology for TLC is outlined addressing the challenges of PSS cost assessment with regard to ‘what?’ (cost object), ‘why/to what extent?’ (scope and boundaries), and ‘how?’ (computations). The research provides clarity for those seeking to cost availability in a performance-orientated contractual setting and provides insight to the measures that may be associated with it. In particular, a reductionist approach that focuses on one cost object at a time is not appropriate for a PSS. Costing an advanced service delivered through a PSS is a problem of attributing the value of means to the economic activities carried out for specific ends to be achieved. Cost results from the interplay between monetary and non-monetary metrics, and uncertainties thereof. Whilst seeking to ensure generality of the findings, the application of TLC examined here is limited to a military aircraft platform and subsystems.

Integrating Overlay Protocols for Providing Autonomic Services in Mobile Ad-Hoc Networks

Next generation network characteristics increase the complexity in the design and provision of advanced services, making inappropriate the selection of traditional approaches. Future networks are becoming larger in scale, more dynamic and more heterogeneous. In order to cope with these requirements, services are expected to adapt to environmental conditions and require minimum human intervention. In this paper a new model for providing autonomous and decentralized services is proposed, especially focusing on mobile ad hoc networks (MANETs). Using a newly proposed four-layered approach, service development may be realized independently from the underlying physical network. In a reference implementation, it is demonstrated that it is possible to set up an overlay network that hides any network changes from the service layer. Multiple mechanisms have been adapted in order to efficiently — in terms of message exchanges and convergence time — operate over an ad hoc environment. Finally, it is demonstrated that a specific service could operate over a dynamic network with multiple failures.

GridVideo: A Practical Example of Nonscientific Application on the Grid

Starting from 1990s and until now, Grid computing has been mainly used in scientific laboratories. Only in the last few years, it is evolving into a business-innovating technology that is driving commercial adoption. In this paper, we describe GridVideo, a Grid-based multimedia application for the distributed tailoring and streaming of media files. The objective is to show, starting from a real experience, how Grid technologies can be used for the development of nonscientific applications. Relevant performance aspects are analyzed, regarding both user-oriented (in terms of responsiveness) and provider-oriented (in terms of system efficiency) requirements. Different multimedia data dissemination strategies have been analyzed and an innovative technique, based on the Fibonacci series, is proposed. To respond to the stringent quality-of-service (QoS) requirements, typical of soft real-time applications, a reservation-based architecture is presented. Such architecture is able to manage the Grid resource allocation, thus enabling the provisioning of advanced services with different QoS levels. Technical and practical problems encountered during the development are discussed, and a thorough performance evaluation of the developed prototype is presented.

EID policy in a turbulent environment: is there a need for a new regulatory framework?

There is increasing interest in the EU about the central place of eIdentity (eID) in people’s lives. eID is increasingly seen as a bridge between the commercial viability of models based on large-scale provision of e-services and users’ need for privacy and security in online transactions. This paper examines technological, social and legal developments in the field of eID and asks whether there is the need for a new regulatory framework that both preserves users’ identity and enables the provision of advanced services. Firstly, the paper interprets recent market moves in the eID field as a response to a rising regulatory tide. Secondly, it examines some of the challenges arising from Web2.0, and four emerging socio-legal issues associated with eID—behavioural profiling, social engineering, redlining and other unsocial practices. Thirdly, the paper examines the capacity of the current regulatory framework to absorb this turbulence, and finds it wanting. Finally, it advances a novel model of eID regulation that may help regulators create an identity-preserving, transaction-friendly eID environment.