ME  Vol.5 No.13 , December 2014
Operations & Maintenance Business Model Transformation—Multiple Case Studies
Author(s) Harri Hyvönen
ABSTRACT
Capital goods companies’ service offering has been mainly to provide spare parts and maintenance work. In search of growth, these companies have expanded to new areas, such as Operations & Maintenance. Instead of operating and maintaining e.g. production processes itself, a customer can outsource a wide variety of managed services based on agreed service levels. There has been a special focus on global information management know-how, governance, process know-how, physical assets, and spare and wear parts. In order to get a good coverage of case studies, we selected five large global suppliers and two customer companies in telecommunication, energy, mining, and pulp and paper business. By implementing the right capabilities in information man- agement and human resources, by managing contract through governance models and by offering right products, a traditional company can transform to the Operations & Maintenance busi- ness model.

Cite this paper
Hyvönen, H. (2014) Operations & Maintenance Business Model Transformation—Multiple Case Studies. Modern Economy, 5, 1161-1170. doi: 10.4236/me.2014.513108.
References
[1]   Willcocks, L., Hindle, J., Feeny, D. and Lacity, M. (2004) IT and Business Process Outsourcing: The Knowledge Potential. Information System Management, 21, 7-15.
http://dx.doi.org/10.1201/1078/44432.21.3.20040601/82471.2

[2]   Campbell, J. (1995) Outsourcing in Maintenance Management a Valid Alternative to Self-Provision. Journal of Quality in Maintenance Engineering, 1, 18-24.
http://dx.doi.org/10.1108/13552519510096369

[3]   Quinn, J. and Hilmer, F. (1995) Strategic Outsourcing. The McKinsey Quarterly, No. 1.

[4]   Prahalad, C. and Hamel, G. (1990) The Core Competence of the Corporation. Harward Business Review, 79-91.

[5]   Coase, R. (1937) The Nature of the Firm. Economica, May-June, 386-405.
http://dx.doi.org/10.1111/j.1468-0335.1937.tb00002.x

[6]   Porter, M. (1985) The Competitive Advantage: Creating and Sustaining Superior Performance. Free Press, New York.

[7]   Di Romualdo, A. and Gurbaxani, V. (1998) Strategic Intent for IT Outsourcing. Sloan Management Review, Summer, 67-80.

[8]   Flynn, B. (1989) Critical Machines Preventive Maintenance Policies for Group Technology Shops. International Journal of Production Research, 27, 2009-2020.
http://dx.doi.org/10.1080/00207548908942670

[9]   Dwight, R. (1999) Searching for Real Maintenance Performance Measures. Journal of Quality in Maintenance Engineering, 5, 258-275. http://dx.doi.org/10.1108/13552519910282728

[10]   Martin, H. (1997) Contracting out the Maintenance. Journal of Quality in Maintenance Engineering, 3, 81-90.http://dx.doi.org/10.1108/13552519710167700

[11]   Earl, M. (1996) The Risks of Outsourcing IT. Sloan Management Review, 37, 26-32.

[12]   Ulli, A. (2000) New Dimensions of Outsourcing: A Combination of Transaction Cost Economics and the Core Competencies Concept. European Journal of Purchasing & Supply Management, 6, 23-29.
http://dx.doi.org/10.1016/S0969-7012(99)00028-3

[13]   He, X., Yang, S. and Ji, P. (2007) A Unified Framework for Outsourcing Governance. Proceedings of the 9th IEEE International Conference on E-Commerce Technology and the 4th IEEE International Conference on Enterprise Computing, E-Commerce and E-Services, Tokyo, 23-26 July 2007, 367-374.

[14]   Oliva, R. and Kallenberg, R. (2003) Managing the Transition from Products to Services. International Journal of Service Industry Management, 14, 160-172.
http://dx.doi.org/10.1108/09564230310474138

[15]   The US Bureau of Labor Statistics (2011) p. 1.

[16]   Dibbern, J., Goles, T., Hirscheim, R. and Jayatilaka, B. (2004) Information Systems Outsourcing: A Survey and Analysis of the Literature. The Data Base for Advances in Information Systems, 35, 6-102.

[17]   Levina, N. and Ross, J. (2003) From the Vendor’s Perspective: Exploring the Value Proposition in IT Outsourcing. MIS Quarterly, 27, 331-364.

[18]   Lacity, M., Willcocks, L. and Feeny, D. (1996) The Value of Selective IT Sourcing. Sloan Management Review, 37, 13-25.

[19]   McFarlan, W. and Nolan, R. (1995) How to Manage an IT Outsourcing Alliance. Sloan Management Review, 36, 2

[20]   Williamson, O. (1985) The Economic Institutions of Capitalism. Free Press, New York.

[21]   Willcocks, L., Hindle, J., Feeny, D. and Lacity, M. (2004) IT and Business Process Outsourcing: The Knowledge Potential. Information System Management, 21, 7-15.

[22]   Jakki, J., Sanjit, S. and Stanley, F. (2011) Mapping the Outsourcing Landscape. Journal of Business Strategy, 32, 42-50. http://dx.doi.org/10.1108/02756661111100319

[23]   Ansell, C. and Gash, A. (2008) Collaborative Governance in Theory and Practice. Journal of Public Administration Research and Theory, 18, 543-571. http://dx.doi.org/10.1093/jopart/mum032

[24]   Tsang, A. (2002) Strategic Dimensions of Maintenance Management. Journal of Quality in Maintenance Engineering, 8, 7-39. http://dx.doi.org/10.1108/13552510210420577

[25]   Wagner, H., Beimborn, D. and Weitzel, T. (2010) The Role of Internal Business/IT Alignment and IT Governance for Service Quality in IT Outsourcing Arrangements. System Sciences (HICSS), 43rd Hawaii International Conference, 1-10.

[26]   Järvinen, P. (2004) On Research Methods. Opinpajan Kirja.

[27]   Yin, R. (2003) Qualitative Research from Start to End. The Guilford Press, New York.

[28]   Zhu, Z., Hsu, K. and Lillie, J. (2001) Outsourcing—A Strategic Move: The Process and the Ingredients for Success. Management Decision, 39, 373-378. http://dx.doi.org/10.1108/EUM0000000005473

[29]   Cross, J., Earl, M. and Sampler, J. (1997) Transformation of IT Function at British Petroleum. MIS Quarterly, 21, 401-423. http://dx.doi.org/10.2307/249721

 
 
Top