Besides the changes in organizational strategy described in the companion article, new service technologies also dictate substantive changes in strategic structures and strategic thinking. These include defining each value-creation activity as a service, asking in each case whether the company can perform that service better than anyone else in the world, and outsourcing or eliminating the activity if the answer to the question is “no.” This article discusses how firms can best perform that analysis and implement the strategy that emerges from their analysis. (Its companion article is “Technology in Services: Rethinking Strategic Focus” by J. B. Quinn, T. L. Doorley and P. C. Paquette; Sloan Management Review 31, no. 2 : 67-78.)
1. J.B. Quinn, J.J. Baruch, and PC. Paquette, "Exploiting the Manufacturing-Services Interface," Sloan Management Review, Summer 1988, pp. 45–56.
2. Supplement: "The Hollow Corporation," Business Week, 3 March 1986.
3. "Paying the Freight," Distribution, June 1988, pp. 48–52.
4. "Services Get the Job Done," Electronic Business, 15 September 1988, pp. 87–90.
5. J.B. Quinn, "Honda Motor Company" (Hanover, NH: The Tuck School at Dartmouth, 1986).
We are most grateful for our respondents' cooperation and for the generous support of the Bell and Howell, Bell Atlanticom, Bankers Trust, Royal Bank of Canada, Braxton Associates, and American Express companies, which helped finance this project.