Challenges in Centralized Solution Development

Other conference contribution, 2018

This paper sets out to explore challenges in centralised development of product/service solutions, focusing on the organisational structure. We report on the drivers and barriers behind adopting the organisational structure, faced by manufacturers when aiming to develop standardised solutions in this organisational set-up. We applied a case study approach, interviewing representatives of three manufacturers providing solutions, aiming to expand their solution business. It is concluded that several of the drivers for centralisation are connected to a strive to develop standardised and repeatable solutions. When this is managed centrally, several challenges occur. First, there is an issue of showing the value of developing the basis for the solution provision either in terms of a platform, or as a pilot project. Second, there is an issue of how to exploit the essential contextual knowledge held by the local offices. Third, complexity occurs in the organisational set-up when technology aspects move closer to the customer, as technology knowledge is needed to integrate the solution into the customers' operations.