Markku Tinnilä

The concept of modularity: diffusion from manufacturing to service production

Purpose – Modules and modularity have been popular concepts in operations research and management rhetoric for decades. Nevertheless, it seems that there is no single universal definition of modularity for classical research themes such as modularity in physical products or modular manufacturing. The purpose of this paper is to describe the current state of modularity research and to clarify the concept and impacts of modularity by means of a literature review. The paper discusses whether the modularity concept originally developed in the context of physical products could be applied in the context of product‐related services.Design/methodology/approach – In this paper, the authors use a methodology called systematic integrative literature review to describe the current state of modularity research and to define – based on the findings of the review – the themes that are most commonly related to the modularity concept. As service modularity research is a relatively new topic, the authors look for definiti...

A model for strategic repositioning of service processes

The restructuring of service channels, driven by deregulation, intensifying global competition and emerging information technology, is forcing every company to re‐evaluate the adequacy of current customer services. Introduces a normative model, called service process analysis (SPA), that properly differentiates the concept of service from the specification of the delivery channel so as to facilitate the analysis of repositioning strategies. In SPA, efficient matching of services and channels is determined on the basis of the trade‐off between production costs and transaction costs involved. Compares the SPA model with some well‐known frameworks and measurement schemes and illustrates its implications for the repositioning of service strategies in selected industries.

Framework for modularity and customization: service perspective

Purpose – Modularity has been identified as one of the most important methods for achieving mass customization. However, service models that apply varying levels of modularity and customization also exist and are appropriate for various business situations. The objective of this paper is to introduce a framework with which different customer service offerings, service production processes, and service production networks can be analyzed in terms of both modularity and customization.Design/methodology/approach – The paper builds theory and offers a systematic approach for analyzing service modularity and customization. To illustrate the dimensions of the framework, the authors also provide service examples of the various aspects.Findings – In the previous literature, the concepts of modularity and customization have often been discussed in an intertwined manner. The authors find that when modularity and customization are regarded as two separate dimensions, and different perspectives– such as the service o...

Strategic perspective to business process redesign

Several world‐class companies have redesigned – or reengineered – their business processes with considerable success. This enthusiasm for business process redesign has been propelled by the claims of these companies to have achieved up to 80 per cent savings on time and costs by restructuring business processes and organizations. The emphasis seems to have been on operational and implementation issues, as well as on radical use of information technology to enable streamlining of processes to a previously unseen extent.

Matching service strategies, business models and modular business processes

Purpose – In recent decades, supply chains have diverged and new types of services and operators have emerged in the logistics sector. The purpose of this paper is to focus on analyzing service strategies and service‐related business models, as well as their modular business processes in logistic services. The aims are to describe these three levels and to match strategic service positioning with business models and modular business processes. Different types of services are analyzed and the analyses are conducted on both the industry and corporate levels.Design/methodology/approach – The theoretical focus of the paper illustrates frameworks for service strategy, service positioning, business models, and business processes. The corporate level approach aims to describe the efficiency and quality of services and their processes, while the industry level approach focuses on service strategies in an industry and on the organization of business, i.e. business models. A case study is used to illustrate the str...

MEASURING DELIVERY PROCESS PERFORMANCE

The focus on reengineering in the early 1990s, and the more recent emphasis on process management and change management have increased both practitioners and researchers interest in the issues of measuring processes. The contradictory results of process change projects reported in the literature and our observations from research suggest conflicting requirements for measurement systems. In this article, we review process measurement schemes with particular emphasis on the measures of time, quality, costs and efficiency. With five case studies, we illustrate process structures and related measurements for both customized and standardized deliveries. A framework for setting objectives for different process types is proposed. The result is a normative scheme for different processes that suggests ways to set meaningful objectives for time, quality, costs and efficiency. Finally, conclusions and implications are presented.

Drivers and tracers of business process changes

Many companies have reported impressive results from their business process reengineering efforts. Based on the analysis of 32 Business Process Reengineering (BPR) projects it became obvious that there is huge diversity among the initiatives. Most of the projects studied were focused on streamlining current business processes, while only in few cases was the business radically redesigned. Internal inefficiency most often resulted in traditional BPR projects, while changing customer and supplier needs led to diversified business processes. However, external and uncontrollable drivers, such as restructuring of industries, can be traced by changes in business and operations strategies. Based on the results, a framework showing efficient ways of implementing different types of BPR projects was constructed. The framework may help managers to analyze the consistency of the alternative strategies for BPR.

Efficient change strategies - matching drivers and tracers in change projects

There is a huge diversity among change initiatives, which range from streamlining single processes to corporate‐scale strategic restructuring. Accordingly, there is also similar diversity in the drivers and reasons for launching projects, as well as in results and tracers of projects. The reengineering literature has focused on operational improvement of a business process. More recently, the scope of process management has widened to examine the relation of strategic goals and the objectives of change projects. It seems to be that sometimes the drivers for starting a change project and tracers of the projects do not match. The results are often more limited in scope, than the objectives. Examines these relationships through 38 case studies. The results show that in all cases where the drives and tracers did not match, the shift was toward lower level results and tracers. Most apparently, this could be observed in projects aiming at changing business strategies, but with the result of updating information systems infrastructures. Develops a framework for analysing efficient matches of different types of drivers and tracers in development projects. The framework distinguishes between projects aiming at changing the business and those seeking to change processes. These can be further divided into classes according to objectives and results.

E-Commerce Logistics: A Literature Research Review and Topics for Future Research

E-commerce has attracted increasing interest at the beginning of the 21st century, in both academia and practice. Today, the Internet is commonly used by both consumers and businesses as a means of purchasing goods. The authors’ study focuses on e-commerce logistics, focusing on the physical delivery of goods sold over the Internet. Based on a systematic review of articles, the authors will summarize and analyze the main findings of academic literature and highlight certain research issues recognized on this topic. The main objective is to study the state-of-the-art of e-commerce logistics research and future research needs. The reviewed articles have been formed into seven categories, and each category is discussed in the paper. The largest categories discuss e-commerce logistics in relation to retail strategies, logistics strategies and structures, and buyer preferences. Although logistics is a critical part of e-commerce, it seems based on the review that not many e-commerce logistics solutions have been developed or studied in current research, and logistics has often been treated as only a minor issue among other issues in e-commerce.

A Review of Service Frameworks Analyzing Strategic Repositioning: The Case of Bank Services

In manufacturing operations it is important to recognise the capabilities of the firm and established ways to position the current and expected manufacturing capabilities. The most recognised tool is the Product-Process matrix of Hayes and Wheelwright. Similarly, in service business there is a growing need to position the capabilities of firms. Many tools analysing services have also been proposed, but no generally accepted framework has so far emerged as a basis for service classification and strategic service positioning. This paper focuses on strategic positioning of services with special focus on analyzing and measuring the repositioning of services. Banking services are used as the main example, which have been analyzed in several studies of service repositioning. The author reviews the service classifications proposed and the dimensions used. Strategic repositioning and its dimensions are illustrated in banking services, and some trends in services are recognized and discussed. Some elements of a more generic service positioning framework are presented for the purpose of summarizing and consolidating the findings of reviewed frameworks.