Understanding the transformation from products to services – a literature reviewand research agenda

Abstract

Throughout the last few decades, firms are increasingly seeking to reposition themselves strategically by moving from pure product manufacturing to offering integrated bundles of products and services in order to provide customized solutions for their customers’ needs (Wise/Baumgartner 1999; Galbraith 2002; Oliva/Kallenberg 2003; Davies 2004; Brady et al. 2005; Tuli et al. 2007; Fang et al. 2008; Nordin et al. 2011; Kowalkowski et al. 2015). This so-called service transformation process is especially noticeable in industries characterized by complex and high-value products and services (Hobday 1998, Gann/Salter 1998; Davies/Brady 2000; Sawhney et al. 2004). In this context, firms like IBM have successfully transformed into service providers, offering individualized product-service packages, and have achieved significant growth and financial success (Sawhney et al. 2004).