strategic management and corporate governance

Effective modular solutions in the goods and services continuum

Erica Santini, Enrico Zaninotto

The integration of material artefacts with services is at the core of all activities that make a product ready to produce utility. This has been achieved by a mobile border line between manufacturers, specialized service providers and the final user (i.e., an end or intermediate consumer). With industrialization, the replicable components of use were embedded in material artefact, whose production enjoyed large economies of scale. The non-replicable components were whereas left either to low productive service providers, whence the “Baumol disease” (Baumol, 1967), or to consumers (thus disappearing from the value-added accounting).

#External PSS #Integrated PSS #Modularity #servitization #Servitization Paradox