TitleServitization Logics for Utilities: A Systematic Approach to Develop B2C-Offerings
Publication Type04. Conference Papers
Year of Publication2014
AuthorsGrahsl, I., & Velamuri V. K.
Conference NameThe XXV ISPIM Conference – Innovation for Sustainable Economy & Society
Date Published06/2014
Keywordscapabilities, hybridvofferings, product-service-development logics, resource-based view, Servitization, utilities
Abstract

For decades, utilities had been commodity providers. Since the liberalization of the energy markets they have started to enlarge their business towards product-service bundles in order to better focus on customer needs, increase their sales, and improve their bottom line. Applying an exploratory multiple case study approach with five leading energy suppliers in Austria and Germany, we observed innovative approaches to provide so-called hybrid offers, based on the concept of servitization. Two distinct logics of how utilities develop hybrid offers are identified: (1) Additive-bundle (i.e., consists of two or more already existing single offerings), and (2) Synergetic-bundle (i.e., consists of two or more components that are integrated to provide a smart one-stop-shop solution). In addition, competences required to successfully develop and provide hybrid offerings were also identified. In total, our study helps utilities understand on how then can expand their offering portfolio well beyond their traditional core business.