Servitization: An integrated strategic and operational systems framework

The global marketplace is increasingly characterised as being both turbulent and extremely competitive in nature. It is within this context that the servitization strategy assumes relevance in positioning traditional manufacturing institutions to gain a strategic advantage and enhance their revenue streams. Based on a multi-disciplinary literature review a strategic and operational systems framework was developed and used as a source of reference in analysing a servitization strategy implemented at a South African manufacturing institution. The framework in effect served as a means to gain an understanding of the integration and interaction relationship that exists between the various systems concerned. An important finding emanating from the research study was that the institution´s business model itself needed to be significantly adapted in order to implement the servitization strategy. This in turn engendered the need for an integrated systems perspective of the change management process adopted. In summary, the research findings and the systems framework developed form the focus of this paper and it is suggested that it could serve as a source of information and reference for management practitioners, engineers, and technologists involved in managing similar servitization strategies.