Devising hybrid solutions: an exploratory framework

Abstract

In this study, we present an exploratory framework to support the development of hybrid solutions within the context of product-centric servitisation. We hypothesise that the development of hybrid solutions should be driven by two main variables: the potential value in use of the product and the perceived risk associated with the value creation process. Moreover, we suggest splitting the perceived risk into availability, use, process and environment-related components. Hence, based on these variables, we suggest: (i) the services that should be attached to a product; (ii) the effect of these attached services on the customer value creation process; and (iii) the benefits that both customer and supplier can achieve from the delivery of hybrid solutions. The practical implications of this study are discussed with respect to several case examples.

Keywords:

• servitisation
• hybrid solutions
• product services
• integrated offerings
• product service systems

Acknowledgements

This paper has been inspired by the activity of the ASAP Service Management Forum (http://www.asapsmf.org). The ASAP SMF is an Italian-based community in which scholars and practitioners from five Italian universities and more than 50 leading manufacturing companies, consulting firms and service providers collaborate in developing research projects and share findings in the services management field. The author would like to thank the anonymous reviewers and the journal editor for their insightful comments and critical suggestions that were of great value to improve the paper’s quality.

Notes

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