As competitively tendering for work is becoming increasingly difficult, and with profit margins reducing, UK construction companies are looking to differentiate their offering to clients. Safely delivering on time, within budget and to the required quality standard is no longer a differentiator in a market where clients are demanding increased value, building information modelling and life cycle provision. Construction companies are therefore looking to extend their activities into business consulting, financing and operational services, which will provide new sources of revenue in addition to their core production activities. This holistic service should provide solutions that meet their client s business needs, not just their building needs, ultimately resulting in long-standing relationships that over time yield a more predictable, long-term return. Over half of the top 20 UK construction companies, by turnover, have stated their intent to provide solutions to their clients - the case study organisation in which this research has been carried out is one of those companies. Part of a group of companies, the case study company, Shepherd Construction Ltd (SCL), has a vision to deliver integrated solutions to their clients, with the ultimate aim being that companies across the group can pool their expertise and deliver a service offering unique to the industry. Existing literature states the characteristics that integrated solutions providers need to possess, and proposes models for how an organisation needs to structure itself to deliver a service. However, the applicability of these models to SCL was unknown, and along with current literature on how to enact the transition pathway being vague, highlighted an area for investigation. Since the aim of integrated solutions provision is the delivery of a service to the client that adds value, it was proposed that lean thinking could provide a means of enacting the P-S transition: the starting point for lean thinking is value (Womack & Jones, 2003). Lean thinking principles (Womack & Jones, 2003) state that value needs to flow through the value stream the series of actions that transform inputs into the completed output raising the further proposition that flow is required through the stages of the integrated solutions lifecycle (the value stream) in order to successfully deliver all aspects of the client s value proposition, i.e. the desired solution. As a long established main-contractor, or product provider, SCL s challenge to transition from products-to-services was set against a backdrop of inconsistent performance and loss of continuity of service at crucial pinch-points in the delivery process. The action research carried out therefore sought to understand these problems and develop practices based on lean thinking that could be implemented in the company to enable consistent delivery of integrated solutions, i.e. enable the products-to-service transition, and in doing so provide the basis for the wider group vision. An abductive approach was taken to the research strategy; the experiences of the participants involved in the changes prompted by the action research process were used to inform the development of new theories and practices, and evaluate them once implemented. The methods used for collecting data and accounting for the experiences of people in the company included observation, both participant and non-participant, semi-structured interviews and analysis of company records. The research findings show that lean thinking has a role to play in enabling an organisation to transition from the provision of products to services. Standard processes and tools, based on lean thinking and developed through the action research framework, are shown to be the basis for consistent and repeatable performance within the phases of the integrated solutions lifecycle. Flow of information through and between phases of the lifecycle is then shown to be essential to ensuring the client s value proposition is realised and information is not lost during the transitions between lifecycle phases. The operational framework for service delivery , one of the practices developed, itself a form of standardised work, draws on lean thinking to provide a structured, yet flexible, means of developing a plan for service delivery that is focused on the client and ensuring the client s definition of value flows through the integrated solutions value stream and is therefore continually understood, and ultimately delivered, by the whole team as the project progresses. The practices developed through the research the standard company management system, operational framework for service delivery , service delivery plan and maturity assessment are shown to have improved consistency and company performance, and to have contributed to improved customer satisfaction (the ultimate aim of delivering a service) such that the company is starting to be perceived in the marketplace as an integrated solutions provider. This research also contributes to existing theory by evidencing that the transition pathway from products-to-services isn t as smooth as current literature portrays. In trying to implement current models in a construction setting, the products-to-service transition has been problematised and deficiencies in existing characteristics and models identified. Along with showing that lean thinking provides a theoretical framework for enacting the products-to-service transition, the hybrid model of the integrated solutions lifecycle developed, along with the maturity assessment, provide new theoretical insights, such as the need for feedback loops between all phases of the lifecycle.

<p>Idag genomförs en avreglering av den svenska Försvarsmakten vilket medför att Försvarsmakten kan komma att efterfråga fler integrated solutions från försvarsindustrin. Integrated solutions är ett relativt outforskat koncept som blivit alltmer vanligt i företags strategiska tänkande. Detta koncept innebär att leverantören inte längre enbart tillhandahåller separata produkter och tjänster utan ett företags specifika produkter och tjänster kopplas samman till en specialanpassad lösning för kundens enskilda behov. Detta innebär att det värde som kunden upplever i och med konsumtion av den specialanpassade lösningen ökar i jämförelse med det värde som uppstår när företagets erbjudanden endast innefattade standardiserade produkter och tjänster. Det resultat som framkom i vår uppsats var att integrated solutions är en sammankoppling av produkter, system och tjänster vilket resulterar i en helhetslösning. Kunden kan köpa en hel integrated solution eller så kan kunden endast betala för den tid eller för de delar av den specifika integrated solution som används. Fördelen med att kunden endast kan betala för den tid som en viss integrated solution används är att leverantören får en möjlighet att genomföra en affär som annars kanske inte hade varit möjlig. FMV:s sätt att hantera sina upphandlingar kan komma att ändras i och med den kommande förändringen, enskilda produkter eller system kommer inte längre att inhandlas istället kommer fokus i större utsträckning att ligga på sammansatta erbjudanden. Även fast FMV i viss utsträckning redan upphandlat sammansatta erbjudanden, kommer behovet av dessa att genomgå en förändring. I och med FMV:s arbete på högre systemnivåer kommer myndigheten att efterfråga vidare erbjudanden än förr, vilket kommer att innebära att myndighetens beställningar kommer att innefatta mer samt bli större. Det är viktigt att Saab utvecklar sina kompetenser till att kunna tillgodose dessa nya uppkommande behov innan konkurrenterna gör det. För att den kommande förändringen ska leda till möjligheter för Saab är det dock viktigt att företaget även de höjer sig i systemnivå. Om Saab kan komma att tillgodose dessa behov kan beställningarna från FMV att öka företagets sysselsättningsgrad. Saab kan dock inte vara säkra på att företaget kommer att få de outsourcingaktiviteterna som FMV kommer att lägga ut, genom att använda sig av den nära relation som finns mellan parterna kan dock Saab komma att försöka förutspå de uppkommande behoven. Konkurrensen kan även komma att öka i det fall FMV väljer att gå ut på den internationella marknaden, detta kan dock även innebära en möjlighet för Saab då företaget får referensprojekt att uppvisa för sina internationella kunder. För att den kommande förändringen ska komma att lyckas för FMV är det viktigt att hela myndigheten har en gemensam målbild där alla strävar åt samma håll. Vi anser även att FMV:s omorganisation kan komma att innebära en effektivisering av både FMV och Saabs verksamheter.</p>

Idag genomförs en avreglering av den svenska Försvarsmakten vilket medför att Försvarsmakten kan komma att efterfråga fler integrated solutions från försvarsindustrin. Integrated solutions är ett relativt outforskat koncept som blivit alltmer vanligt i företags strategiska tänkande. Detta koncept innebär att leverantören inte längre enbart tillhandahåller separata produkter och tjänster utan ett företags specifika produkter och tjänster kopplas samman till en specialanpassad lösning för kundens enskilda behov. Detta innebär att det värde som kunden upplever i och med konsumtion av den specialanpassade lösningen ökar i jämförelse med det värde som uppstår när företagets erbjudanden endast innefattade standardiserade produkter och tjänster. Det resultat som framkom i vår uppsats var att integrated solutions är en sammankoppling av produkter, system och tjänster vilket resulterar i en helhetslösning. Kunden kan köpa en hel integrated solution eller så kan kunden endast betala för den tid eller för de delar av den specifika integrated solution som används. Fördelen med att kunden endast kan betala för den tid som en viss integrated solution används är att leverantören får en möjlighet att genomföra en affär som annars kanske inte hade varit möjlig. FMV:s sätt att hantera sina upphandlingar kan komma att ändras i och med den kommande förändringen, enskilda produkter eller system kommer inte längre att inhandlas istället kommer fokus i större utsträckning att ligga på sammansatta erbjudanden. Även fast FMV i viss utsträckning redan upphandlat sammansatta erbjudanden, kommer behovet av dessa att genomgå en förändring. I och med FMV:s arbete på högre systemnivåer kommer myndigheten att efterfråga vidare erbjudanden än förr, vilket kommer att innebära att myndighetens beställningar kommer att innefatta mer samt bli större. Det är viktigt att Saab utvecklar sina kompetenser till att kunna tillgodose dessa nya uppkommande behov innan konkurrenterna gör det. För att den kommande förändringen ska leda till möjligheter för Saab är det dock viktigt att företaget även de höjer sig i systemnivå. Om Saab kan komma att tillgodose dessa behov kan beställningarna från FMV att öka företagets sysselsättningsgrad. Saab kan dock inte vara säkra på att företaget kommer att få de outsourcingaktiviteterna som FMV kommer att lägga ut, genom att använda sig av den nära relation som finns mellan parterna kan dock Saab komma att försöka förutspå de uppkommande behoven. Konkurrensen kan även komma att öka i det fall FMV väljer att gå ut på den internationella marknaden, detta kan dock även innebära en möjlighet för Saab då företaget får referensprojekt att uppvisa för sina internationella kunder. För att den kommande förändringen ska komma att lyckas för FMV är det viktigt att hela myndigheten har en gemensam målbild där alla strävar åt samma håll. Vi anser även att FMV:s omorganisation kan komma att innebära en effektivisering av både FMV och Saabs verksamheter.

The focus of environmental work in manufacturing companies has increasingly shifted from end-of-pipe solutions to the environmental performance of products and services. The product development process is central to creating value for customers. This thesis argues that companies can simultaneously create value for consumers and be profitable while taking environmental considerations into account. Modernising ecodesign means taking advantage of environmental benefits and the innovation potential when developing solutions rather than using ecodesign simply to ensure that legal requirements or customer demands are met. Ecodesign is a strategic issue and should be included in early product development activities, such as for project selection and when setting product targets. There is also need to perform ecodesign according to the characteristics of specific development processes as for radical product development or when developing integrated solutions, using a combination of services and products. This thesis reports on the findings from five different research studies, all of which adopted a qualitative approach in which the emphasis falls on exploring and creating understanding and meaning. The studies focused on three areas of ecodesign: A) rethinking approaches for manufacturing companies, B) setting environmental project targets and project selection and C) redesign of products. Recommendations on how to modernise ecodesign have been developed and can be summarised in six points: • Perform ecodesign both vertically and horizontally in a company. • Increase interaction between organisational units. • Take advantage of innovation potential in products, services, user behaviour and the delivery and take-back systems. • Take environmental considerations into account in the project selection process. • Set environmental targets for ensuring that environmental considerations are taken when developing innovative solutions. • Develop ecodesign procedures that fit the characteristics of the development process

Offering business solutions instead of selling products has been identified by many firms as a strategy to fight against price pressure through commoditisation, to strengthen relationships with customers, and to increase ‘share of wallet’. Yet, three out of four companies selling business solutions fail to see a sustainable economic impact (Johansson et al., 2003). One approach to understanding how business solution suppliers could change this situation is to develop an understanding of the life cycle of business solutions, from idea generation to redeployment. This systematic review examines how the literature conceptualises the development, deployment and redeployment of business solutions. It systematically identifies and then analyses 31 scholarly articles contributing to our knowledge on this issue. The review discusses the literature within the framework of four aspects. Firstly, the review proposes the processes and phases of the development and deployment of business solutions. Secondly, it presents the components of the redeployment of business solutions. Thirdly, it provides information on the actors involved in the development, deployment, and redeployment of business solutions, and, fourthly, it discusses the interaction forms of these actors. The discussion shows that evidence in relation to the conceptualisation of the development, deployment, and redeployment of business solutions remains at a superficial, tentative and inconclusive level. The major limitations of the extant literature relate to the studies’ context-specificity, their lack of theoretical underpinning, and their deficiency of including actors of the supplier and/or customer network in the empirical investigation even though there is evidence that they play a role in the development, deployment, and redeployment of business solutions. Based on the limitations identified, the study suggests opportunities of further research.

<p>The focus of environmental work in manufacturing companies has increasingly shifted from end-of-pipe solutions to the environmental performance of products and services. The product development process is central to creating value for customers. This thesis argues that companies can simultaneously create value for consumers and be profitable while taking environmental considerations into account.</p><p>Modernising ecodesign means taking advantage of environmental benefits and the innovation potential when developing solutions rather than using ecodesign simply to ensure that legal requirements or customer demands are met. Ecodesign is a strategic issue and should be included in early product development activities, such as for project selection and when setting product targets. There is also need to perform ecodesign according to the characteristics of specific development processes as for radical product development or when developing integrated solutions, using a combination of services and products.</p><p>This thesis reports on the findings from five different research studies, all of which adopted a qualitative approach in which the emphasis falls on exploring and creating understanding and meaning. The studies focused on three areas of ecodesign: A) rethinking approaches for manufacturing companies, B) setting environmental project targets and project selection and C) redesign of products.</p><p>Recommendations on how to modernise ecodesign have been developed and can be summarised in six points:</p><p>• Perform ecodesign both vertically and horizontally in a company.</p><p>• Increase interaction between organisational units.</p><p>• Take advantage of innovation potential in products, services, user behaviour and the delivery and take-back systems.</p><p>• Take environmental considerations into account in the project selection process.</p><p>• Set environmental targets for ensuring that environmental considerations are taken when developing innovative solutions.</p><p>• Develop ecodesign procedures that fit the characteristics of the development process</p>

With varying degrees of success, a number of firms in the capital goods sector are experimenting with different ‘integrated solutions’ initiatives. Integrated solutions include product innovations which enable increased process control that allows the optimisation of the customers’ processes, as well as business innovations which change the firms’ business models and customer approach. It is not always easy to develop and commercialise these new offerings, especially for firms that have traditionally focused on developing and selling products. Integrated solutions challenge these firms to shift the focus from physical products, spare parts and support services to emphasis on delivery of performance optimisation and productivity. This thesis is a compilation of five papers and five supporting chapters that discuss and analyse the challenges with developing and commercialising integrated solutions in the capital goods sector. The research builds on case studies of firms experimenting with integrated-solution offerings. The firms produce complex, expensive industrial machinery to customers in the process and manufacturing industries. The main case is based on a five-year, in-depth longitudinal study of Alfa Laval, and more specifically of the developments within the wastewater industry. Other case studies include ITT Flygt and Atlas Copco. The thesis shows that the development and commercialisation of integrated solutions represent a multifaceted, iterative and complex process for the firms under study, who need to combine product, service and business innovations, create new business structures, and create new relationships with customers and possible partners. Consequently, the development of integrated solutions is not confined to or explained by one theoretical field in this thesis, but is linked to innovation, service and network perspectives. The thesis also shows that the three activities of innovating, organising and building relationships are dependent on changing market structures, customer demands and business cycles. Therefore it becomes important to manage the coexistence of different types of offerings, such as products, services and integrated solutions.

Background: Service industries have grown extensively over the past few decades on the back of globalized business trends. With increasing competition, product firms are struggling on product sales alone. Hence, both products and services are being bundled into what is known as offerings. Moreover, firms are looking into how they can improve their offerings to meet customer needs with the help of smart products. Smart products are described as products able to communicate and interact with other electronic devices as well as being self aware. One of these examples is conditional monitoring whereby the product is houses built in sensors to communicate with a back end ERP system providing the supplier a transparent view and real-time update into the status and service needs for both the product and customer. Purpose: The aim of this thesis is to explore how smart products can help leverage services for product firms moving towards a service focus. Method: In addressing the purpose a case study strategy was applied. An inductive approach was used, and interviews were conducted with two Swedish manufacturers, SKF and Atlas Copco. SAP, a software provider was also interviewed. Lastly, a qualitative approach was used and secondary data was collected through annual reports, as well as public company information. Conclusions: Smart products show the capability of being able to record, transmit and act upon their behavior and usage. One major finding from the thesis is that smart products enable product firms to extend their service portfolios from a transactional to a relational standpoint through real time information feeds. This includes asset maintenance as well as monitoring and visibility into client operations. In addition, traditional product firms help product firm’s move towards a service strategy. Another finding of the thesis is that information visibility shows a positive co-relation with the service provider’s ability to take on more risk increasing service revenues and customer lock in and increase value co-creation. On the other hand smart products show to be challenging to product firms new to service development. These challenges include increasing initial infrastructure costs and high level of maintenance and complexity of the smart products.

The manufacturing industry has experienced a change in the business environment during the last decade and has started to explore the possibilities of integrating products and services into new bundled offerings. A great deal has been published about this new phenomenon and it is often referred to as integrated solutions. When implementing an integrated solution it requires changes in the organizational structure, resulting in a need to develop further capabilities. Capabilities are explained as complex bundles of skills and accumulated knowledge possessed by organizations that enables them to coordinate their activities and make use of their assets. Previous literature has focused on the capabilities needed for suppliers that develop integrated solutions, leaving uncertainties regarding the needed capabilities for the customer. This research intends to investigate the capabilities needed from both the supplier’s and customer’s perspective and how they affect the development of integrated solutions. To investigate this, a thorough literature review was conducted to create a foundation of knowledge regarding the research area and resulted in a theoretical framework. The research follows a qualitative case study approach where empirical data was collected primarily through interviews but also by analyzing documents that resulted in needed capabilities for both actors. Furthermore, economic models were developed to provide a holistic view of the integrated solution and enable comparison with the current trading situation. The research resulted in five dimensions including capabilities needed for the supplier and four dimensions including capabilities needed for the customer when developing the integrated solution. The dimensions are: Control capability, Economic capability, Organizational capability, Production capability, and Relational capability. In this specific case study, the production capability dimension was considered unique for the supplier and did not iterate from the perspective of the customer. Apart from this, the dimensions were considered important for both actors. The findings indicate that the capabilities possessed by both the supplier and the customer affect the integrated solution and that it is important to investigate the needed capabilities form the perspective of both actors before developing the integrated solution. However, there were differences since some capabilities were required by only one actor and some were considered more or less essential depending on the actor. Furthermore, the findings imply that the uniqueness of the business relationship and the industry may affect the needed capabilities. / Under det senaste årtiondet har det skett en förändring i tillverkningsindustrin då flera företag har börjat undersöka möjligheterna att integrera produkter och tjänster till kombinerade erbjudanden. Denna förändring har förekommit frekvent i litteraturen och benämns ofta som integrerade lösningar. När man implementerar en integrerad lösning krävs förändringar i den organisatoriska strukturen vilket har resulterat i ett behov av att utveckla ytterligare förmågor. Förmågor definieras som komplexa kombinationer av kompetenser och den kunskap som finns hos organisationen som möjliggör att kunna koordinera sina möjligheter och utnyttja sina tillgångar optimalt. Tidigare litteratur har fokuserat på de förmågor som leverantörer behöver för att utveckla integrerade lösningar vilket skapar en osäkerhet gällande de förmågor som krävs av kunden. Studien avser att undersöka de förmågor som krävs både ur ett leverantörs- och kundperspektiv när man utvecklar integrerade lösningar. En noggrann litteraturundersökning gjordes för att skapa en grund av kunskap gällande forskningsområdet och resulterade i ett teoretiskt ramverk. En kvalitativ fallstudie utfördes där empirisk data samlades in genom huvudsakligen intervjuer men också genom att analysera dokument. Således resulterade fallstudien i de förmågor som krävdes av båda aktörerna för att utveckla den integrerade lösningen. För att skapa en helhetssyn över den integrerade lösningen utvecklades en ekonomisk modell vilket möjliggjorde för en jämförelse av den nuvarande handelssituationen. Undersökningen resulterade i fem dimensioner innehållande förmågor för leverantören respektive fyra dimensioner innehållande förmågor för kunden vid utveckling av den integrerade lösningen. Följande dimensioner identifierades: kontrollförmåga, ekonomisk förmåga, organisatorisk förmåga, produktionsförmåga och relationsförmåga. I denna specifika fallstudie ansågs produktionsförmågorna endast beröra leverantören och därav itererade dem inte ur ett kundperspektiv. Utöver denna förmåga ansågs alla dimensioner viktiga för båda aktörerna. Resultatet indikerar att det är viktigt att undersöka vilka förmågor som behövs både för leverantören och kunden vid utvecklingen av en integrerad lösning. Trots att många av de förmågor som identifierades i studien ansågs viktiga för båda aktörerna fanns det olikheter då vissa förmågor endast behövdes för en av aktörerna och vissa ansågs mer eller mindre viktiga beroende på aktör. Resultatet indikerar även att den unika affärsrelationen och den specifika industrin kan ha en påverkan på vilka förmågor som anses viktiga för aktörerna.

This thesis aims to enhance the current literature by investigating the causes for the service paradox in service ecosystems and the capabilities required to avoid them. To fulfill this purpose the following research questions were derived: RQ 1: What are the possible key causes for the service paradox for integrated solution providers in a triadic value constellation? RQ 2: What key capabilities allow integrated solution providers to avoid the service paradox in a triadic value constellation? This study used an exploratory, qualitative, single-case study of a service ecosystem, with an abductive research approach. In total, 13 companies within the ecosystem took part in the research, and the data was collected through five unstructured interviews, 19 semi-structured interviews, and one workshop. The result from the interviews was derived using thematic analysis. The findings are divided into three parts. First, we identified four key causes of the service paradox for integrated solution providers in a triadic value constellation. The four key causes are: (1) Cost creep, (2) Unsustainable in-house costs, (3) Brand damage, and (4) Industry-specific factors. Second, we identified five key capabilities for integrated solution providers to mitigate the service paradox. The five key capabilities are: (1) Relational capabilities, (2) Technological capabilities, (3) Learning and communication capabilities, (4) Operational capabilities, and (5) Market capabilities. Finally, the two previous findings were combined into a framework that provides a guide for which key capabilities mitigate which key causes. This study contributes to current servitization literature by deepening knowledge on factors affecting the success of servitization efforts. Furthermore, this study extends the knowledge of how a dynamic and collaborative approach impacts the development of novel servitization solutions. For practitioners seeking to develop integrated solution offerings, the framework developed in this study provides a list of priorities for the servitization effort. The framework also allows managers to evaluate their servitization process and implement quick actions to improve performance. / Denna avhandling syftar till att bidra till den aktuella litteraturen genom att undersöka orsakerna till tjänsteparadoxen i tjänsteekosystem och de färdigheter som krävs för att undvika dem. För att uppfylla detta syfte formulerades följande forskningsfrågor: RQ 1: Vilka är de möjliga huvudorsakerna till tjänsteparadoxen för integrerade lösningsleverantörer i en triadisk värdekonstellation? RQ 2: Vilka nyckelfunktioner gör det möjligt för integrerade lösningsleverantörer att undvika tjänsteparadoxen i en triadisk värdekonstellation? För att besvara dessa frågor använde vi oss av en undersökande, kvalitativ, enfallsstudie av ett tjänsteekosystem, med en abduktiv forskningsmetod. Totalt deltog 13 företag inom ekosystemet och data samlades in genom fem ostrukturerade intervjuer, 19 semistrukturerade intervjuer och en workshop. Intervjusvaren analyserades med hjälp av tematisk analys och resultaten presenteras i tre delar. För det första identifierade vi fyra huvudorsaker till tjänsteparadoxen för integrerade lösningsleverantörer i en triadisk värdekonstellation. De fyra huvudorsakerna är: (1) Smygande kostnader, (2) Ohållbara interna kostnader, (3) Varumärkesskador och (4) Branschspecifika faktorer. För det andra identifierade vi fem nyckelfärdigheter för integrerade lösningsleverantörer för att motverka tjänsteparadoxen. De fem nyckelfärdigheterna är: (1) Relationskapacitet, (2) teknisk kapacitet, (3) inlärnings- och kommunikationskapacitet, (4) operativ kapacitet och (5) marknadskapacitet. Slutligen kombinerades de två tidigare resultaten till ett ramverk som ger en vägledning för vilken nyckelfunktionerna minskar vilka viktiga orsaker. Denna studie bidrar till aktuell tjänstefieringslitteratur genom att fördjupa kunskapen om faktorer som påverkar framgången för tjänstefieringsinsatser. Vidare utökar denna studie kunskapen om hur ett dynamiskt och samarbetsinriktat förhållningssätt påverkar utvecklingen av nya tjänstefieringslösningar. För utövare som försöker utveckla integrerade lösningserbjudanden ger ramverket som utvecklats i denna studie en lista över prioriteringar för tjänstefieringsarbetet. Ramverket gör det också möjligt för chefer att utvärdera sin egen tjänstefieringsprocess och vidta relevanta åtgärder för att undvika tjänsteparadoxen.