Roadmapping the service transition: Insights for technology organizations

Product technology firms are under increasing pressure to adopt service-oriented business models to target new opportunities for increased sales growth and profitability. But, there are always risks involved in transitioning to a service-dominant strategy. Service-oriented business models span across functional areas and require new skills, designs, resources, cultural change, approaches to customer value creation, and innovative strategies. Because of these risks, many organizations are slow to adopt the service model and may become discouraged during the transition or even abandon it. This paper will explore the service-transition process for high-technology product firm and use a technology-roadmapping approach to illustrate the strategy dimensions and issues encountered. A set of business model parameters for the service transition is presented.