Charting a path toward integrated solutions

Brady, Tim, Davies, Andrew and Hobday, Michael (2006) Charting a path toward integrated solutions MIT Sloan Management Review, 47 (3). pp. 39-48. ISSN 1532-9194

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For both manufacturing companies and service firms, the basis of competition is shifting fast. Manufacturers are finding they must compete by selling services; service firms now have to provide products as well as services. The emerging battleground is known as “integrated solutions” and it is where leading companies such as IBM, General Electric, Rolls-Royce and EDS already compete aggressively. Rolls-Royce provides airlines with “power by the hour” selling engines along with the services to maintain and upgrade them over many years. Services provider EDS now manages and integrates different suppliers’ technologies and products as part of its business outsourcing solutions. However, the integrated solutions approach is not simply a matter of blending products and services. Customers are buying guaranteed solutions for trouble-free operations. So the key is to develop and deploy the right capabilities — and to structure the organization so these capabilities match customers’ needs. This article offers a blueprint for implementing integrated solutions, drawing on extensive research with such companies as Alstom Transport, Cable and Wireless, Thales, Ericsson and Atkins. The article highlights the importance of four prerequisite capabilities and shows the organization structures necessary for success — structures that are no longer bounded by product, service or geographic lines. The article then lays out three levels of organizational capability to chart the journey that integrated-solutions providers must take.

Item Type: Journal article
Uncontrolled Keywords: Corporate Strategy; Business enterprises; Computer science; Information services; Quality of products; Transportation; Vertical integration; Knowledge management; Transportation industry; Innovation; CENTRIM
Subjects: N000 Business and Management > N200 Management studies > N210 Management techniques > N211 Strategic management
N000 Business and Management > N200 Management studies > N210 Management techniques > N215 Change and Innovation
N000 Business and Management
N000 Business and Management > N100 Business studies
Faculties: Brighton Business School > Centre for Research in Innovation Management
Depositing User: editor centrim
Date Deposited: 08 Feb 2010
Last Modified: 26 Jun 2013 10:24

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