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.

Related Articles


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 February 27, 2015 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 February 27, 2015).

Share This


More From ScienceDaily



More Computers & Math News

Friday, February 27, 2015

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Lenovo Hack May Be Retaliation For 'Superfish' Vulnerability

Lenovo Hack May Be Retaliation For 'Superfish' Vulnerability

Newsy (Feb. 26, 2015) — Lenovo&apos;s website was hacked by what appears to be the infamous Lizard Squad group. The attack seems to be related to Lenovo&apos;s "Superfish" controversy. Video provided by Newsy
Powered by NewsLook.com
Cyber Criminals Holding Phone and Computer Data to Ransom

Cyber Criminals Holding Phone and Computer Data to Ransom

AFP (Feb. 26, 2015) — Computer and smartphone viruses are holding an increasing number of devices hostage using “ransomware.” Duration:02:21 Video provided by AFP
Powered by NewsLook.com
China Shuns Big Tech Names

China Shuns Big Tech Names

Reuters - Business Video Online (Feb. 26, 2015) — The Chinese government has taken products from major tech firms off its purchase list in favour of smaller domestic players, but experts warn the plan may backfire making them open to security risks. Eve Johnson reports. Video provided by Reuters
Powered by NewsLook.com
Apple Reveals Potential Date For Apple Watch Reveal

Apple Reveals Potential Date For Apple Watch Reveal

Newsy (Feb. 26, 2015) — The company sent out announcements for a March 9 media event with a simple message, "Spring forward." 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:

Strange & Offbeat Stories

 

Space & Time

Matter & Energy

Computers & Math

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