Problem solving in the upgrading of product offerings — A case study from the steel industry

This paper deals with the efforts of suppliers to upgrade their offerings — from standardized products to more advanced and customized solutions. Upgrading requires what has been identified in product development research as ‘problem-solving’ ability on the part of the supplier. The purpose of the paper is to explore the role of problem solving in the three phases of the upgrading process identified in the analytical framework: evaluation, transition, and post-implementation.Owing to the exploratory nature of this research a case study approach is used, describing and analyzing the implementation of two upgraded offerings of a steel company. The study illuminates the problems associated with such changes attributable to interdependences in the customer's current resource set up. The problem-solving ability of the supplier is a key capability in these efforts, also involving resource contributions from the buyer and other network actors.