The PROGRESS of MANUFACTURING FIRMS in SERVITIZATION A case study within Royal Philips

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This research considers to what extent the maturity model, Kotter’s (1996) eight steps, and the 3D model can support organizational transformation within servitization. Besides, it seeks to understand how to determine the progress of organizations within this transformation process. Moreover, this study aims to contribute to academic literature on servitization and change management, while simultaneously providing recommendations about the best practices and points of focus for practitioners during servitization. A qualitative research approach in the form of a single case-study at Philips is used to formulate an answer to the research question. The data is gathered through conducting semi-structured interviews and documents published by Philips. The research analysis shows that all three change models directly or indirectly provide a way to determine progression within the transformation process. Besides, the models provide solutions to organizations’ inability to operationalize their strategic plans for servitization. The maturity model provides direct feedback on the progression via an assessment and is used as a communication tool. Kotter’s (1996) eight steps model is most useful for the design of the transformation process at a strategic level. The model concentrates on the role of leaders to influence employees to change. A more complete view on change is provided by the 3D model (Achterbergh & Vriens, 2019). The analysis shows that bottom-up change processes need more room to develop to increase engagement of employees. This can be reached by focusing on the three dimensions, continuously assessing progression, adjusting goals based on evaluation, creating an experimental working environment, involving employees in the design and diagnosis phases of the process, communication via multiple channels, and sharing knowledge
Faculteit der Managementwetenschappen