Featured Research

from universities, journals, and other organizations

Study on service lifecycle management

Date:
October 21, 2013
Source:
Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO
Summary:
Offering services to accompany the products they sell is already an important consideration for manufacturing companies. Well-known examples include furniture that is assembled at the customer’s home, printers for which the customer receives ink cartridges by regular postal delivery, or conventional cell phones that are sold inclusive of a contract with a cell phone operator. This trend is set to intensify in future. If companies wish to remain competitive, they must master servitization – the process of transforming pure products into bundles of products and services. Doing so requires strategic business models that treat both services and products as important from the outset.

Offering services to accompany the products they sell is already an important consideration for manufacturing companies. Well-known examples include furniture that is assembled at the customer's home, printers for which the customer receives ink cartridges by regular postal delivery, or conventional cell phones that are sold inclusive of a contract with a cell phone operator. This trend is set to intensify in future. If companies wish to remain competitive, they must master servitization -- the process of transforming pure products into bundles of products and services. Doing so requires strategic business models that treat both services and products as important from the outset.

How does one go about systematically creating this new kind of business model? Service lifecycle management provides an effective solution. It's very similar to product lifecycle management, and comprises three stages: service ideation (brainstorming, structured evaluation and selection), service engineering (developing the chosen idea through to market launch), and service operations management (marketing, sales, quality assurance). In order to discover the extent to which manufacturing companies are already using lifecycle management programs to professionally manage the services they offer, Fraunhofer IAO questioned 14 experts working in the field as part of its "Anforderungen an ein Service Lifecycle Management" study.

According to the specialists surveyed, manufacturing companies' services business is becoming ever more important. Their feedback indicated that the first major step is to offer each customer services tailored to their specific needs. This then allows companies to offer their customers hybrid bundles of products and services, creating a unique selling point. The third indispensable factor is highly qualified staff, which the experts deem essential for delivering services in the marketplace. It is precisely these three strategic aspects that must be borne in mind when developing a service lifecycle management program.

The short study shows that the majority of companies surveyed do not yet have a comprehensive service lifecycle management program in place. The main reason cited was insufficient capacity, with underqualified staff also named as an important factor. The companies surveyed would above all like to have systematic, practical support when it comes to selecting and developing ideas for suitable services.


Story Source:

The above story is based on materials provided by Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO. Note: Materials may be edited for content and length.


Cite This Page:

Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO. "Study on service lifecycle management." ScienceDaily. ScienceDaily, 21 October 2013. <www.sciencedaily.com/releases/2013/10/131021094510.htm>.
Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO. (2013, October 21). Study on service lifecycle management. ScienceDaily. Retrieved July 28, 2014 from www.sciencedaily.com/releases/2013/10/131021094510.htm
Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO. "Study on service lifecycle management." ScienceDaily. www.sciencedaily.com/releases/2013/10/131021094510.htm (accessed July 28, 2014).

Share This




More Computers & Math News

Monday, July 28, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Teen's Phone Ignites Under Her Pillow; How Real Is The Risk?

Teen's Phone Ignites Under Her Pillow; How Real Is The Risk?

Newsy (July 28, 2014) — A Texas teen's Samsung phone apparently ignited while she slept, but what was the real problem here? Video provided by Newsy
Powered by NewsLook.com
Google's Next Frontier: The Human Body

Google's Next Frontier: The Human Body

Newsy (July 27, 2014) — Google is collecting genetic and molecular information to paint a picture of the perfectly healthy human. Video provided by Newsy
Powered by NewsLook.com
Cellphone Unlocking Bill Clears U.S. House, Heads to Obama

Cellphone Unlocking Bill Clears U.S. House, Heads to Obama

Reuters - US Online Video (July 27, 2014) — Congress gets rid of pesky law that made it illegal to "unlock" mobile phones without permission, giving consumers the option to use the same phone on a competitor's wireless network. Mana Rabiee reports. Video provided by Reuters
Powered by NewsLook.com
Congress OKs Unlocking Phones From Carriers

Congress OKs Unlocking Phones From Carriers

Newsy (July 26, 2014) — A bill legalizing "unlocking," or untethering a phone from its default wireless carrier, has passed Congress and is expected to be signed into law. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
 
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:  

Breaking News:
from the past week

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:  

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile iPhone Android Web
Follow Facebook Twitter Google+
Subscribe RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins