Service transition: Finding the right position on the goods-to-services continuum

Fundin, A., Witell, L., Gebauer, H. (2012)

Abstract: The aim of this paper is to describe and further develop existing models of service transition; that is, how companies position and move on the goods-to-services continuum. This study concludes that service transition can be profitable for manufacturing firms as long as they do not become stuck in a mismatch between their organisational arrangements and their offerings. The paper contributes by: providing an overview of companies’ positions on the goods-to-services continuum, introducing movements on the continuum, suggesting service development as a possible engine of renewal and providing empirical evidence on the relationship between positions on the continuum and profit margins.

This is one of those useful papers that pulls together and compares thoughts from many previous authors as well as contributing thoughts on how to progress in its subject topic.

I like the similar look back to see if thoughts are new now or cycling around again.  This paper quotes: “As far back as 1969, Theodore Levitt proposed that firms could benefit dramatically by providing solutions. For instance, instead of selling machinery and drills, a company could start to sell drilled holes (Levitt, 1969).”

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