Academic Year 2012/13 Number of Aston Credits: 10 Number of ECTS Credits: 5 Staff Member Responsible for the Module: Mr Patrick Keen, Teaching Fellow – Service Operations Management; Operations & Information Management Group. Aston Business School Building, Room 265, Extension 3367 Email: p.keen@aston.ac.uk Availability: see https://wass.aston.ac.uk/ Or contact the Group Administrator, John Morley - ABS266, Extension 3236 Pre-requisites for the Module: There are no formal prerequisites for this course. Programmes & Mode of Attendance: The module is taught on-campus by Aston University staff with the support of guest speakers from industry. Module Objectives and Learning Outcomes: Manufacturing and services industries are often seen as independent. Whether discussing the economies of nations, classification of businesses, education and training, or employment, they are treated as separate. Yet manufacturers themselves can base their competitive strategies on services, and the process through which this is achieved is commonly known as servitization (or servicisation). This strategy can be a high-value strategy. The commercial benefits of servitization are convincing (Rolls-Royce Plc earn around 50% of their revenue from services); the environmental arguments compelling (significant reductions in materials and energy usage); and the opportunities immense (three quarters of wealth world-wide is now created through services). It is increasingly seen as a new paradigm in industrial organization and has become a new focus for Government industrial competitiveness policy.

BNM746 Technology-Led Service Strategy

Servitization can be approached in various ways. Some manufacturers simply add more and more individual services to complement their product offerings, while others develop bespoke, long-term and intimate offerings with a few strategic customers. Seeing themselves as service providers, they exploit their own design and production competences (technology) to deliver and improve business processes for their customers. This latter category is referred to as advanced- or technology-led- services because they can have dramatic implications for the manufacturer, its customers and partners.

On completion of this module, students will understand the:

Economic, technological and environmental trends that are encouraging the use of technology-led service strategies, or ‘servitization’

Concepts and models that describe the service offerings, risks, and revenues of world-leading manufacturers

Practices and technologies that underpin the capabilities that businesses need if they are to be successful with servitization, including organization and configuration of the supply chain, and location and management of facilities.

Techniques for quickly evaluating the relevance of servitization to specific businesses and industries

The module thereby also supports achievement of the following key learning outcomes of the MBA: Knowledge and understanding A1 Current theoretical and practical management literatures and concepts that underpin management thinking and practice in a global context. A2 A wide range of management disciplines and managerial competencies. A3 How the management disciplines integrate and feed into strategic decision-making at a corporate level. Intellectual skills B1 Demonstrate competence in critical reasoning, creative thinking and the development of visionary ideas. B3 Identify, analyze, diagnose and propose (and evaluate) solutions to complex managerial issues and problems. B4 Offer informed and considered opinion when presented with managerial issues and problems. B5 Engage intelligently in debates about what constitutes “best practice”. Professional skills C1 Build upon their knowledge and understanding of the theories they have engaged with to make a wide range of management and strategic decisions.

Transferable skills D2 Written communication skills D3 Oral communication skills D4 Team working skills D5 Cross-cultural awareness D8 Leadership skills D9 Interpersonal skills D10 Change management skills D14 Self-awareness and self-confidence

Module Content: Our insight and understanding has been developed through close collaborative working with businesses at the cutting edge of servitization, including Rolls Royce, Xerox, Alstom, MAN Truck and Bus, and IBM. With speakers from industry, we will look at the technology led service strategy in its whole and its key aspects, helping students understand how, when and why the new business model can be employed to secure a profitable competitive edge by considering:

Why services-based competitive strategies are appealing, reflecting on the wider business context that is now common for manufacturers

The different forms of services offering, their financial benefits and the risks that accompany them

An organizational system for successful delivery The practices and technologies that constitute this system - explaining and

illustrating each in detail, examining their role and significance in the delivery of advanced services.

A methodology that managers can apply in practice to evaluate the relevance of servitization to their own manufacturing organization.

Students wishing to develop the skills for planning and implementing transformation to technology-led services should also take module BNM747, which focuses on the practical application and introduction of servitization concepts and practices to business. Corporate Connections, International Dimensions, & the Contribution of Research: The module content was developed through collaborative research with leading industry players in the field, including Xerox, Alstom, IBM, Rolls Royce, and M.A.N. Truck and Bus. Ongoing work of the OIM group with large industry and SMEs will ensure that the knowledge disseminated continues to reflect current best practice. Industry speakers will also be brought in to support delivery of the module in order to provide a view from the front line and cutting edge of Servitization.

The international dimension of competition and business organization is a key aspect of technology-led service strategies and ‘servitization’, and is reflected in the case study material used. As part of the module, students will have the opportunity to supplement this knowledge through group work and personal papers which form part of the teaching and assessment process. Ethics, Responsibility & Sustainability: Technology-led service strategies can bring significant benefits to the environment through improvements to efficiency in the design and use of products, potentially resulting in fewer, better performing products being used to achieve the same or better solutions to customer needs, together with improved reuse and recycling of goods/materials. Though not a focus of the course, there are interesting equality and diversity questions to be explored around technology-led service strategies which will be considered in the way that services are adapted to meet customer requirements. Method of Teaching: Teaching will be by a combination of lecture, tutorial, and group and individual study. Interaction with external experts in industry and consultancy is also being used in the module delivery to help students understand more fully the practical as well as theoretical knowledge and skill sets for developing and implementing technology-led service strategies. Method of Assessment and Feedback: This course is assessed on a continuous basis through three complementary methods, weighted as follows:

1. Servitization ‘quiz’ (knowledge of models and concepts) (20%) 2. Group (video) presentation (40%) 3. Individual report (40%)

These will, respectively:

Ensure that students individually have developed a good understanding across the subject area and explored the literature

Encourage students to work together and share perspectives in an area of shared interest (e.g. particular industries or issues), thereby developing skills for communicating the concepts, issues and requirements

Encourage and reward students for focusing on specific topics most important and interesting for them personally/their overarching learning objectives and career development aspirations

The assessment will be done in this order so as to understand and ensure that progress is being made throughout the course, thereby optimizing the final learning results for the student. The ‘quiz’ will assess at an early stage how well students have understood the basic concepts, issues, opportunities and contextual drivers. This will be delivered as a test done online through blackboard. It will ensure that prior to completing the more heavily weighted assessment-requirements they have established a good grounding in the subject matter. For the group-work, students will be allocated to teams to investigate, develop and present a video report on a key issue in servitization that interests them. The group video should demonstrate an understanding of the opportunities presented by technology-led services as well as the challenges and how they can be overcome. It should last between 5 and 10 minutes, and be suitable for publication on the University website. The video will be presented to an expert panel from academia and industry during the module, and the video and the content as well as the role and contributions of the various team members discussed. Feedback on the video presentations will be given during the module to support completion of personal papers. The personal paper is to be presented in the form of an extended essay, and may be developed in conjunction with, or separately from the group work. It should reflect the student’s personal interests in the course and the learning done, and any outstanding questions to be explored. The paper is to be submitted at the end of the module, with comments returned subsequently on an individual basis. Students will ideally set themselves objectives at the outset of the course reflecting their desired outcomes and application of the learning and use this to guide ongoing learning and the final paper. Learning Hours: Contact hours 30 Class preparation Directed learning/additional reading 60 Private study/exam preparation 28 Examination 2 Total 100

The following essential and recommended readings are subject to change. Students should not therefore purchase textbooks prior to commencing their course. If students wish to undertake background reading before starting the course, many of the chapters/readings are available in electronic form via on-line library catalogues and other resources. Essential Reading:

Leadership in high-value services: Understanding what it takes for a manufacturer to compete through servitization (forthcoming, 2012) Baines, T., Lightfoot, H. Prentice Hall.

Indicative Bibliography:

Wider reading will not only explore the literature on ‘servitization’/product-service systems, but also complementary literature on best practice in operational management and strategy in service and manufacturing. Students will also benefit from focused reading into specific subject areas, such as remote condition monitoring technologies and recruitment and training strategies for field service agents.