Morrey N, D A and Thomson D, P C (2013) Problematisation of the shift from products to services. In: Smith, S D and Ahiaga-Dagbui, D D (eds.) Proceedings of 29th Annual ARCOM Conference, 2-4 September 2013, Reading, UK.
Abstract
Over half of the top 20 UK construction companies aspire to provide services and solutions to their clients. This is a clear recognition that constructing on time, defect free and within budget is no longer a differentiator; instead competitive advantage can be gained from technical expertise, consideration of whole life costs and delivering the client's whole value proposition. The majority of literature addressing the evolution of products to service is theoretical, proposing strategic models and outlining the key characteristics of being an integrated solutions provider. In reality the transition pathway to becoming a solutions provider is difficult for organisations that have hitherto focused on product delivery. Through semi-structured interviews, observation of management meetings and project feedback, the problems encountered when trying to embed the characteristics of integrated solutions provision are examined within a leading construction firm undergoing such a transition. It reveals a disconnect in approach between head office work-winning teams and regional project delivery teams that has resulted in a lack of continuity of service at crucial pinch-points in the delivery process. A silo mentality, resulting in a lack of common understanding across the team, can be traced to an organisational path dependency that stems from historical decisions, and is therefore very difficult to overcome. The paper suggests practical mechanisms to help the business make changes to their working practices, routines and organisational structures. It is intended that these will drive the development of new capabilities allowing the organisation to break free from the paths it has become locked into to become a true solutions provider.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | integrated solution; path dependency; service; transition; value |
| Index terms: | evolution, integrated solution, path dependency, product delivery, transition pathway, project delivery, competitive advantage, interview, becoming, routine, organizational structure, working practice, construction firm, whole life cost, construction company |
| Subjects: | project delivery, environmental science, product delivery, organization, business, strategic management, data collection methods, innovation studies, sociology, market analysis, financial analysis, philosophical process, management |
| Topics: | Supply Chain Management, Organizational Design, Cost Management, Business Strategy, Research Practice, Sustainability, Procurement |
| Descriptive scope: | 3 PCE |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here