capabilities

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.

Latest publications in journals and newspapers tend to draw a cheerless future for companies producing in Western Europe. This is reason enough to analyze the companies still competing successfully in high cost countries. What kinds of success factors have these companies in common? Based on a benchmarking project, 48 companies have been identified, which, in comparison to their competitors, stand out with a superior development of their market share, sales and margin. Out of these, the four most successful companies have been chosen to gain a better understanding of the success factors of producing in high cost countries.

Many manufacturing companies want to become solution providers. Unfortunately, they have not extended their service offering systematically. They also have not built up the required capabilities in the company. The article describes how companies can find the right breadth of service offering and the required competences by analysing the customers' processes and needs. The article serves as a guideline for managers to extend and implement the service offering.