Servitization of Manufacturing: The Effects on Performance Objectives and Value Delivery of Smartphone Integration

Abstract Purpose - This aim of this dissertation is to explore the affects of servitization on the performance objectives and effective value delivery of smartphone integrations. Design/methodology/approach - Survey strategy was adopted in this dissertation to collect primary data. Questionnaires were used to collect the customer requirements of smartphones. Semi-structured interviews were conducted to collect the manufacturers’ view on performance objectives of smartphone manufacturing and smartphone value delivery. SPSS was used to analyse the results of questionnaires, and interviews were analyzed case by case and then cross referenced. Comparison and contrast between customers’ view and manufacturers’ view were implemented to reflect the role of servitization and its implications on the performance objectives of smartphone and value delivery. Findings - It is found that, by adopting servitization strategy, the customer requirements of smartphone were shifted from device to smartphone services. The priority and nature of smartphone performance objectives were changed. Smartphone manufacturing firms play an important role in effective smartphone value delivery, and cooperation among stakeholders in the smartphone value supply network are important to effective value delivery as well. Research limitation/implications - This dissertation has several limitations. First, due to the time and geography restrictions, sample selected for data collection is not large enough to represent most of the population. Second, more cases companies should be involved in the interview so as to gathering more detailed information about manufacturing implementations. Finally, the influence on effective smartphone value delivery made by other stakeholders in the value delivery network, like service content provider, network provider, application provider and operating system provider would have added to rich this dissertation, but this may lead to lacking of original focus and made the research work unmanageable. Originality/ value - A more comprehensive definition of servitization is given in this dissertation. The empirical research of this dissertation is also unique, many points in this dissertation are practical and meaningful to instruct the implements of smartphone manufacturing and value delivery. Keywords: Servitization, Performance Objectives, Effective value delivery, Smartphone product and service