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Vicky Story publishes in the International Journal of Operations & Production Management (IJOPM)
CSM core member Professor Vicky Story has been informed that her article "Motivations for servitization: The impact of product complexity” (Chris Raddats, Tim Baines, Jamie Burton, Vicky Story, & Judy Zolkiewski) has been accepted for publication in the 4* journal the International Journal of Operations & Production Management (IJOPM).
The purpose of this research is to identify the commonalities and differences in manufacturers’ motivations to servitize. This was attained with a UK study based on interviews with 40 managers in 25 companies in 12 sectors. Using the concept of product complexity, sectors were grouped using the Complex Products and Systems (CoPS) typology: non-complex products complex products and systems.
The main findings can be summarised as follows. Motivations to servitize vary according to product complexity, although cost savings and improved service quality appear important demand-based motivations for all manufacturers. Non-complex product manufacturers also focus on services to help product differentiation. For CoPS manufacturers, both risk reduction and developing a new revenue stream were important motivations. For uniquely complex product manufacturers, stabilising revenue and increased profitability were strong motivations. For uniquely systems manufacturers, customers sought business transformation, whilst new service business models were also identified.