The Road Towards Service-Integrated Offerings for Product-Centred Manufacturing Firms : A Case Study within Husqvarna

Abstract: In recent years there has been an increase in servitisation amongst manufacturing firms. Change could be inevitable to stay competitive in this fierce innovative environment and is therefore an ongoing topic that needs to be addressed. This impacts how the firms need to adapt and position themselves in order to survive, though the path to become service-integrated is not apparent. The purpose of this master’s thesis is to perform a case study of Husqvarna, a world-leading manufacturing firm within forestry, gardening and construction, known for its premium quality and brand, in order to discover what is needed both to become product-service integrated, as well as to select and launch such offerings. This thesis investigates these areas and offers a thorough framework that may be used as a compass by manufacturing firms looking to undergo long-term change. However, there are many challenges in becoming a service-integrated firm and meeting the requirements needed. An analysis of gaps within this research field was conducted which led to interest in impacting shifts, uncertain criteria and maturity for product launch. The framework sheds light on the crucial elements involved in the servitisation journey and was developed through a thorough synthesis of literature and results from data analysis. The insights were obtained through semi-structured interviews and formal meetings with experts in the field and relevant personnel within the firm, bridging the gap between theory and reality. It consists of three pillars covering transformation, concept screening, and launch. These pillars include clear suggestions on steps towards becoming a product-service-focused firm with successfully released offerings. Firstly, it has been discovered that to become a product-service-focused firm there needs to be openness for acquisition of new mindsets, resources and procedures that benefits the service integration. Secondly, it is important to choose the right ideas and concepts to realise, by making sure they are technically feasible and create value for the customer, backed up with solid collaboration within and outside the firm. Thirdly, product-service offerings have proven to be different from physical products in their required maturity to launch, meaning that they can be released while still incomplete with continued development thereafter. There is however a certain level of completeness that needs to be fulfilled, such as establishing a minimum viable product and continuous feedback loop for the offering during the whole product development process.