SERVICE STRATEGY, SYSTEMS, AND INNOVATION IN SUPPORT OF UK MILITARY LAND FORCES

Rich Morales, PhD Candidate Centre for Strategy and Performance, Cambridge University

BACKGROUNDNew PhD Student. Began PhD 1 October 2009 (6 months)Funded by US military for 3 years. Army officer. Recently commanded 800 soldier Task Force in Iraq Access to BAE Systems and Ministry of Defence organizations

RESEARCH CONTEXT Service Economy, shifts in manufacturing, economic market and policy drivers Public Private Partnerships and joint ventures Technology infusion, consolidation, and outsourcing trends in military logistics Varied service missions/cultures: air, sea, land forces (one size does not fit all)

POTENTIAL RESEARCH QUESTION How do firms design and manage service support to military land

forces?

POTENTIAL CONTRIBUTION Insight into Co-creation: merging different cultures and objectives (profit v.

public)organizational structures, processes, service leadership and strategy

GOALBetter understand service strategy formulation, the complexities of service systems, and examine a specialized case of industry support to the private sector.

THEORY What is Service?

Definition(s)Frameworks

What is a Service Strategy?Corporate (market based - external)Business Unit (resource-based - internal) Literature Review

What structure and management systems best support service delivery?Organizational Design and Systems ThinkingService Specific Processes and Product Service SystemsPerformance Management

PRACTICE Application of theory to new area of practice Build on military air and sea service research Describe unique aspects of land support

gap

What specific strategies, organizational design, and management systems are most effective to provide support to land based platforms?

How are service based strategies formulated ?

How does performance measurement differ in product-service based firms?

KEY CONCEPTS

“application of competencies, knowledge, and skills through deeds, processes, and performances for the benefit of another entity or the entity itself”

Vargo and Lusch, 2004• Value is determined by the beneficiary• Service is provided through a complex combinations of goods, money, and institutions• Service is inherently customer oriented / Importance of value-in use and co-creation

“time-perishable, intangible experience performed for a customer acting in the role of co-producer.” Fitzsimmons and Fitzsimmons, 2004

•The customer is a participant in the service process•Service is labor intensive / Output is difficult to measure•Service is time perishable

Servitization : “the integration of packages of products, services, support, self service and insight which add value to a firm’s business” Vandermerwe and Rada, 1998

Characteristics of service which reoccur most commonly in the literature: 1)intangibility, 2) simultaneity, 3) inseparability, 4) perishability, and 5) heterogeneity

"All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved".

Sun Tzu (500 BC)

Competitive Strategy (Market Forces) Porter: New Entrants, Suppliers, Customers, Competitors, Substitutes

Resource Based View Strategy (Internal Forces) Competencies: Industry specific know-howBalanced Scorecard

Organizational TransformationAgency TheoryBusiness Process ReengineeringSeven 7s: Strategy, Skills, Shared Values, Staff, Systems, Style, Structure

(Peters and Waterman)

Strategy Formulation and ImplementationAnalysis (Environment, Resources, Gap), Alternatives, Evaluation, Strategic Choice

Tasks required to carry out transformation to service:1)design of a service system organization, 2)production of a delivery system,3)the means by which to evaluate service system’s overall effectiveness and responsiveness

“new capabilities, metrics, incentives, and an emphasis on changing business models from transactions to relationships ” (Olivia and Kallenborg, 2003) Product Service Systems

Exploratory Case Study BAE Air

Supporting Case Studies ?IBM, Rolls Royce, NASA, E-ADS

In Depth Case StudyBAE Land and Armaments

Action or Process Research ?

FOCUSProduct-Service System design and managementUnique civil-military organizational structure

MACRO VIEWWhy partnered industry-MOD ventures? Are partnered approaches more effective than MOD internal support? Do partnered approaches provide better long term value to MOD? What are the risks to the firm? MOD?

MICRO VIEW How do firms develop service strategies and gauge their success? What unique performance measurement systems are required? How is an integrated partnered work force managed?

METHODOLOGY