Hybrid Value Creation The Capability for Customer Integration

Integrating products and services to customized hybrid products can help firms to differentiate from their competitors. The essential value proposition of such bundled offerings can comprise usage-based selling (e.g. of machines) combined with guaranteed availability or the operation of customers’ complex production factors such as a complete assembly line. Operational efficiency is no longer sufficient for achieving long term success with hybrid products. Rather it is the way of interaction with customers which provides new opportunities for value creation. In the context of hybrid products the way of creating value for customers changes from a purely transactional view to a relational process. Accordingly, this paper addresses this change from a process-oriented perspective.