Service Manufacturing Industries: Challenging Assumed Incommensurability - Essay Sample

Introduction

Service and manufacturing industries are usually assumed incommensurable. Regardless of the base of discussion such as business classification, national economies, training, education or employment, most of these industries tend to see as separate entities. The rationale assumption jeopardizes the norm among most manufacturers who usually base the strategies for competition on the services they deliver as well as the process in which the whole system is achieved. This process is known as servitization. The term servitization is widely recognized due to its operation and ability to create value to the industries by adding services to their products. Since its inception in the late 1980s, the adoption has adversely grown as one of the competitive manufacturing strategy ever studied by several authors who have specifically opted to understand the implication and development of this concept in the business sector. However, the interest in servitization progress with attempts to gain concrete traction.

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In most modern manufacturing, the concept has been seen to advance beyond production as well as the product-service models in business which is being accepted as very vital to the success of industries in the twenty-first century (Baines & Lightfoot, 2013). The recognition of the economic benefits of by researchers reveals that servitization is a convincing concept for the environmental arguments in a very compelling manner and that most opportunities are immense. The paper also focuses on the technologies and practices which underpin the capability for the successful delivery of service in advance through exploratory bridging of the work. The data collected from several organizations, key customers, and self-service-delivery partners portrays mild advancement in the servitization as most manufacturing industries progressively adopt the concept.

Background

Most engine manufacture in the aerospace sector such as Pratt and Whitney, Rolls-Royce (R-R), and General Electric offer primary forms contracts which are with several commercial airlines where most of the compensations are tied to the capability and availability of the products which they can deliver within a given period. For instance, R-R has made a registered trademark for both the inclusive "TotalCare" and "Power by the Hour "contracts to boost its operations. Similarly, these operations aim at providing the airlines with fixed costs in engine maintenance over a given period, approximately a decade. However, in developing the TotalCare, this service sector acts as an example of several manufacturers that have adopted servitization strategy which is product-centric (Baines & Lightfoot, 2013). Notably, in Western countries, most companies especially the ones within the industry sectors and work under a highly installed product base such as elevators, locomotives, business machines, machine tools, construction equipment, printing machinery, and agricultural machinery have adopted the strategy and are inevitably experiencing the same challenges. However, most of these companies have developed a comprehensive platform to help them understand they in which they can deliver their integrated products and services with explicit effectiveness and efficiency within the stipulated time.

Notably, exceptional cases in servitization are advanced services. This is often known as availability, capability or performance; where most manufacturers prefer delivering their services which are combined with several incentivized contracting mechanism which are very vital to the core business processes of their customers. This study is therefore set to discuss how manufacturers configure most of their operations to deliver advanced services (Baines et al., 2015). The analysis has convergence on distinct practices and technologies which are used within the manufacturing industries operations before being rationalized under definite jeopardy.

Moreover, servitization provides different terms which are adversely linked with products and services which industry offers. In servitization, the product is usually well understood by most manufacturers as any tangible commodity which is manufactured for selling purposes and has an ability of "falling on the toe" (Baines & Lightfoot, 2013). The concept of servitization is viewed as very contentious and often used in literature to typically define other aspects which are far from its original meaning. On the other hand, service in servitization refers to the level of performance concerning the operations which the industry goes through. It creates a relationship between the customers and the industries in the product delivery process and also helps in building a complete rationale for the success of other systems.

Interestingly, servitization within the concept of operations in manufacturing industries is defined as the increased fuller market package offer to the customer through a combination of support, goods, services, knowledge, and self-service to add value to the core of product offerings. According to Baines et al. (2015), servitization is also provided access to the proper way of understanding reward and all other financial risks through insightful and reliable data (Baines et al., 2015). As an input concept, most revenue earned in manufacturing companies is always of the higher rates and continues to increase with an increase in the production levels. Similarly, most manufacturers are successfully taking over and maximizing the output by selling back their products to most of their esteemed customers. However, the relationship between the transaction process and the concept is usually very complicated especially in occasions where the revenues which the manufacturers earn increase while the profit decreases amidst greater servitization (Baines et al., 2017). Consequently, several factors are associated with relationship primarily through risks and life management costs. Proper alignment is, therefore, necessary to bring the rational into a concrete operation with the stipulated strategies and service processes.

Furthermore, research on operations management is adversely growing around this issue. For instance, close exploration of the association between forwarding integration and servitization to reach the customers have adequately staged (Baines et al., 2015). The process of buyer-seller relationship also changed to maximize the outputs in the manufacturing and business sector especially the front-offices for expansion with separate operation techniques. Most of the services which were offered through this process focus mainly on the outcome of the product provision as well as the execution of different product competence for the stability purposes. Similarly, in the product/equipment provision, standard warranty services, and spare part provision, the outcome is based products condition in the maintenance (Baines & Lightfoot, 2013). However, in the production competence exploitation to maintain products conditions, the concept focuses on the known procedure of building the worn out parts or making repairs.

Services Science

Due to its origin in the sector of Information Technology, services science is a new interdisciplinary concept in the servitization for service delivery. It focuses, specific aspect of service, where they are viewed as a system of interacting different parts which include business, technology, and people. It acts as a technological melding through a mild understanding of organizations and business processes. As a result, service science builds most of its ideas from several existing disciplines such as cognitive science, engineering computer science, organizational behavior, economics, operation research, marketing as well as human resource management. The overall aim is to integrate these disciplines into a coherent and comprehensive science of service.

Problematization

Engagement with servitization of manufacture involves several clusters of researchers which deal with building a context of creating cohesion between product and services. The concept reveals the essential features of the products in the market under segmented approaches in the literature review. Since 1988, servitization has been defined through several methods in different nations and countries, for instance, the USA, Western Europe, and the UK, where it was first initiated in the business practices and managerial roles.

Studies reveal that most operating factories where activities reflect which are done within their premises reflect the new service roles in manufacturing, value-added is more likely to be realized as opposed to other whose activities focus in adding services to their system (Anderson, Cleveland & Schroeder, 2015). Similarly, other researchers argue that manufacturers need to maximize their customer relationship to build more confidence in their products and service deliveries. Such motivations are geared toward improving the industry's framework as well as create an explicit platform where customers can maximize their relationship with the manufacturer in attempts to improve the transaction process.

According to most motivations in the manufacturing system are based on the revenue generation among companies which have extensive installed products system (Alonso-Rasgado, Thompson & Elfstrom, 2014). However, the service delivery method is usually proposed together with different potential barriers for the success of the servitization strategy implementation. Under this method, the delivery services process also aimed at allowing customers to buy a guaranteed solution for any trouble-free operation, especially in occasions where network delivery play a vital role in enhancing the relationship with the company.

Additionally, in product service system (PSS), studies have been conducted to help in integrating products and services offered by most manufacturers which delivers value-in-use services and products (Baines et al., 2017). Being first introduced in the 1990s in Northern Europe, the concept of product-service system has received several accolades from the social and environmental sciences.

Several kinds of literature contain a diverse range of PSS concept, while others demonstrate economic success to emphasize significant social and environmental gains. PSS solutions have massive potentiality. In decoupling all the environmental pressures which are familiar from the economic growth by focusing on the assets as opposed to ownership. However, the system has some key barriers that bar its adequate operation process. For instance, some consumers may lack self-drive about ownerless consumption, thereby making the system passive (Brax, 2015). Notably, although, some practices and methods in the PSS usually require proper pedigree which is formed by explicit evaluation of the process, consumers in most developed countries have developed a cultural shift to help them overcome these challenges of adopting the PSS.

Moreover, in services marketing, servitization provides a proper review to be undertaken for the distribution and exchange processes of commodities. In most manufacturing companies, the focus has been shifted from the economic exchange to service marketing management to satisfy all the customers who are transgressing to the fore. Following decades in the marketing mix or the four P's (product, price, place, and promotion) reveals that the inclusion of the strategy in the manufacturing industry adds granularity to the process in which most firms could adjust their offering independently to satisfy their customers in the market platform. Studies show that during the 1970s, the marketing service acknowledgment was different from products being delivered (Chase & Apte, 2007...