Integrated solutions from a service-centered perspective: Applicability and limitations in the capital goods industry

Although advanced services, or so called integrated solutions, have increasingly received attention in the literature, no coherent body of literature exists, and the relational dimensions and consequences of integrated solutions are not explored in detail. Based on the emerging literature, we develop a framework identifying four different categories of integrated solutions: rental, maintenance, operational and performance offerings. We also compare and contrast the service- and the goods-centered logics with the logic of integrated solutions, and thereby show how the reciprocal interdependencies increase between customers and suppliers. We explore these interdependencies further in three case studies of firms experimenting with integrated solutions, and identify dependencies related to process knowledge, process optimization, and process operations. The paper shows that rather than moving along a linear continuum from goods to services, firms developing integrated solutions need to balance elements of both goods- and service-logics, as well as manage the increased customer–supplier interdependencies that integrated solutions entail.