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The servitization of production towards product-service systems (PSS) is a challenging transformative endeavor. It demands a shift of deeply rooted manifestations like shared assumptions, values and beliefs framing the understanding about and performing of core tasks of value creation. Whilst the existing body of research agrees on the pivotal factor of these deeply manifested elements of organizational culture, we argue that there is still little research elucidating actors' perceptions of the role of culture in servitizing organizations. This paper aims to address this research gap by introducing an explorative cultural analysis at the company Ericsson. The main objective is to retrieve and further specify cultural facets and their potential role as enablers and inhibitors of servitization as perceived by actors. The key results of the study provide an advanced understanding of organizational culture as a critical factor within servitization of production. On the one hand, the results reveal that perceived separation-oriented values and beliefs emerge as specific cultural facets which enforce the exploitation of established product-oriented and service-oriented routines and practices. On the other hand, perceived facets of integration-oriented values and beliefs underpin the mutually organized processes of value co-creation. Based on these results, the authors finally argue that the integration- and separation-oriented values and beliefs of organizational culture make up a specific field of opposing forces within the servitizing organization of Ericsson. In order to make progress in servitization we argue that one approach of addressing or managing this specific field of opposing demands might be the nurturing of path-breaking initiatives. [ABSTRACT FROM AUTHOR]

In adopting highly integrated Product-Service Systems (PSS), incentive structures change and the value attainable for providers throughout the lifecycle becomes an issue of growing complexity. Nonetheless, value for PSS providers has up to now not been considered in a multidimensional fashion. In an effort to move towards a characterization of provider's value, an offering in the information communication technology sector was examined through an investigation with ten staff-members of Ericsson, Sweden. This led to a value-categorization, which can be utilized in the PSS design process to enhance the value captured throughout the lifecycle beyond immediate monetary benefit. In an effort to provide general learnings, the results are discussed with a focus on PSS business models, PSS design and management communication. Overall, the results presented provide a more comprehensive picture of what a provider has to gain from a PSS offering throughout its entire lifecycle. [ABSTRACT FROM AUTHOR]

Facing the potential advantages and specific challenges of IPSS business model development we refer to a critical field for its succession: the hindering and supporting influence of managerial cognition. Related to microfoundations in dynamic capability research, we analyze for the development of IPSS how managerial cognitions influence a firms’ capability to realize new business model opportunities and to seize and reorganize its resources in order to take advantage from these opportunities. We apply the research on managerial cognition to the field of IPSS. Our empirical exploration is based on a qualitative case study analysis, comprising of interviews and cognitive mapping. We discover managers’ cognitions concerning new market opportunities, their perception of the necessity to change and their coping patterns for resource allocation. Our key finding is that IPSS are nor primarily considered as opportunities but rather threats with different strategies of coping mechanisms. There is a high consciousness for increasing sensemaking activities inside and outside the organization to adopt to new ways of value creation. [ABSTRACT FROM AUTHOR]

An increasing number of Original Equipment Manufacturers (OEM) are realizing that their products, earlier the foundation of their success, no longer stand alone in satisfying customer requirements. Customers now demand integration of services and bundling as well as increased active participation of OEMs during the use phase. Ericsson, a Swedish multinational OEM of communications technology and services, is an example of such a company. The objective of this paper is to describe, compare and discuss Ericsson's journey from a product provider to a PSS provider, e.g. by comparison with other industry examples. Furthermore, the paper highlights future challenges and opportunities for instance regarding business models, trends and product design. [ABSTRACT FROM AUTHOR]

Many ICT companies are transforming, going from a product focus towards more service focused business approaches. This transformation process has been on-going for a couple of decades now and places high demands, not only on the technological development and business models but also on the companieś ability to mature and transform the organizational setup, leadership capabilities, and the need for different types of competencies. This paper analyzes the servitization process within the ICT industry by presenting a case study that addresses the organizational challenges and gives tentative answers on how to cope with them. [ABSTRACT FROM AUTHOR]