Why Service Businesses Are Not Product Businesses  

Oleh:

Nambisan, Satish

Jenis: Article from Bulletin/Magazine - ilmiah internasional
Dalam koleksi: Sloan: Management Review vol. 42 no. 4 (2001), page 72-81.
Topik: product; service businesses; product businesses

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: SS27.3 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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What company in a service business has not weighed the advisability of offering products ? What manager in a product - oriented business has not thought about growing revenues by adding related services ? Expansion often seems to make sense, but if an expanding company limits itself to approaches that work in its old sector, it is likely to find them unsuited to the new sector. The software industry provides instructive examples. Intense competition and the need to maintain a high growth rate have led numerous software service companies to try repackaging the knowledge they have gained creating customized software solutions for clients - and to sell it as a more generic product. Their attempts to cross the chasm between the service sector and the product sector have met with grim results : Approximately 87 % of software service companies' product initiatives from 1995 through 1998 failed.

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