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The Servitization of Manufacturing: An Empirical Case Study of IBM Corporation

Author

Listed:
  • Zahir Ahamed
  • Dr. Takehiro Inohara
  • Dr. Akira Kamoshida

Abstract

A conceptual model of firm process transition from manufacturing to servitization is proposed based on empirical case study. It denotes that the firm process in traditional manufacturing is run by resource and technology, and the primary objective of the company is making a good quality product, which has been observed a significant difference in servitized manufacturing firms that are conducted through skills and knowledge, and the firms main focus on developing value added services and more solutions oriented to customers. This research explains how a traditional hardware manufacturer, namely ¡®IBM Corporation¡¯ revolutions in the computer industry through non-hardware (Service-ware) depend services activities; consulting, financing, training, and so on and has fundamentally shifted their business from not only producing goods to offering a bundle of goods and services (Servitization). It also discusses the pertinent aspects of the firm¡¯s cultural adaptation and strategic change process towards servitization of manufacturing based on our observations and interview results of IBM professionals.

Suggested Citation

  • Zahir Ahamed & Dr. Takehiro Inohara & Dr. Akira Kamoshida, 2013. "The Servitization of Manufacturing: An Empirical Case Study of IBM Corporation," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 4(2), pages 18-26, March.
    • Handle: RePEc:jfr:ijba11:v:4:y:2013:i:2:p:18-26
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    Citations

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    Cited by:

    1. Leonardo Costa Ribeiro & Ulisses dos Santos & Valbona Muzaka, 2017. "Trademarks as an indicator of innovation: towards a fuller picture," Textos para Discussão Cedeplar-UFMG 571, Cedeplar, Universidade Federal de Minas Gerais.
    2. Justyna Kozlowska, 2020. "What Influences the Servitization Process the Most? A Perspective of Polish Machinery Manufacturers," Sustainability, MDPI, vol. 12(12), pages 1-24, June.
    3. Judit OLÁH & József POPP & Domicián MÁTÉ, 2017. "An Examination Of Servitization As A Breakthrough Success Factor Along The Supply Chain," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 15, pages 373-379, December.
    4. Enrique Gilles & Marcel Vaillant, 2016. "Incorporation of services in natural resource-intensive goods: description and measurement of the phenomenon," Documentos de Trabajo EAN 15105, Universidad EAN.
    5. Baines, Tim & Ziaee Bigdeli, Ali & Sousa, Rui & Schroeder, Andreas, 2020. "Framing the servitization transformation process: A model to understand and facilitate the servitization journey," International Journal of Production Economics, Elsevier, vol. 221(C).
    6. Leonardo Costa Ribeiro & Ulisses Pereira Santos & Valbona Muzaka, 2022. "Trademarks as an indicator of innovation: towards a fuller picture," Scientometrics, Springer;Akadémiai Kiadó, vol. 127(1), pages 481-508, January.
    7. Enrique Gilles & Marcel Vaillant, 2016. "Incorporation of services in Natural Resource-Intensive goods: description and measurement," Documentos de Trabajo EAN 15163, Universidad EAN.
    8. Boddin, Dominik & Kroeger, Thilo, 2021. "Structural change revisited: The rise of manufacturing jobs in the service sector," Discussion Papers 38/2021, Deutsche Bundesbank.
    9. Valerie Mercer-Blackman & Christine Ablaza, 2018. "The Servicification of Manufacturing in Asia: Redefining the Sources of Labor Productivity," Working Papers id:12954, eSocialSciences.

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