Servitization

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Michael A. Cusumano, professor of management, MIT Sloan School of Management

How to Innovate When Platforms Won’t Stop Moving

In this interview, MIT Sloan School of Management professor of management Michael Cusumano discusses traits that will help companies through disruptive transitions. One trait is agility, which has four principles: capabilities rather than strategy; pull rather than push concepts; economies of scope rather than scale; and an emphasis on flexibility rather than efficiency. A second trait is deep, differentiating capabilities, which can be found in processes (such as supply-chain management).

Courtesy of Flickr user Jinho.Jung

Bringing Open Innovation to Services

Services comprise more than 70% of aggregate gross domestic product and employment in the Organization for Economic Cooperation and Development countries. As a result, both individual companies and entire economies face the challenge of how to innovate in services. One suggestion: Companies should both organize their innovation processes to be more open to external knowledge and ideas and also let more of their ideas and knowledge flow to the outside when not being used internally.

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The Three Challenges of Corporate Consulting

For many product-oriented companies, establishing a corporate consultancy can be a good first step toward a more solutions-based orientation. As Ericsson, Shell and AT&T, among others, illustrate, the consulting unit can take a number of forms dictated by its key knowledge base and its relation to the product businesses‘ value chain. The challenge is to determine how similar the consulting unit should be to the parent company in identity, mission and structure.

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