A New Industry Lifecycle Model

Product, Process, and Service: A New Industry Lifecycle Model Michael Cusumano MIT Sloan prepare of care 50 Memorial Drive, E52-538 Cambridge, MA 02142-1347 USA 617-253-2574 cusumano@mit.edu Fernando F. Suarez Boston University schooltime of Management 595 Commonwealth Ave., Room 546-F Boston, Massachusetts 02215, USA 617-358-3572 suarezf@bu.edu Steve Kahl MIT Sloan School of Management 50 Memorial Drive, E52-511 Cambridge, MA 02142-1347 USA 617-253-6680 skahl@mit.edu troop 8, 2007 Product, Process, and Service Product, Process, and Service: A New Industry Lifecycle Model Abstract Existing models of perseverance lifecycle evolution tend to focus on changes in products and processes and largely overlook the importance of services. Sales of services, however, are becoming increasingly significant in the revenues of many industrial and high-technology firms either because of persistence evolution or strategic decisions or both. In this paper, we unravel lifecycle theory by explicitly incorporating the role of services at different stages in the potential evolution of an industry.

Building on the literature in service management and industry evolution, we proffer theoretical support for our propositions regarding the potential role of services in the ahead of time, mature, and post-discontinuity phases of an industry lifecycle. Keywords: industry lifecycles, services, maturity, business models Product, Process, and Service 1. Introduction One of the main tenets of how firms and industries spring up is that, as some businesses mature, the basis of competition shifts from product knowledgeableness to process innovation (Utterback and Abernathy 1975; Utterback and Suarez 1993; Utterback 1994; Klepper 1996, 1997; Adner and Levinthal 2001). For example, the model initially proposed by Utterback and Abernathy in 1975, holds that, early after the birth of a new industry, firms compete base upon product differentiation, investing heavily in developing new... If you demand to get a full essay, order it on our website: Orderessay

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