Ericsson – The History from Product to Solution Provider and Challenges and Opportunities in an Evolving Environment

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.