Skip to main content
SpringerLink
Log in

From product-centric to customer-centric services in a financial institution – exploring the organizational challenges of the transition process

  • Published:
Information Systems Frontiers Aims and scope Submit manuscript

Abstract

This research aims to contribute to an increased understanding of the strategic, cultural and other organizational challenges in a transition process from product-centric to customer-centric services. The paper describes an exploratory case study, conducted in a complex financial services organization in the context of their customer-facing services. The transition process was examined through the theoretical lens of Work System Theory (WST), following the argument made by previous researchers that service systems could be seen as work systems. This holistic theory enabled us to capture the three key phases of the transition process as work systems snapshots and through their evolving relationships show the manner in which the transitions occurred from one phase to another. This innovative approach provided the researchers with an in-depth insight into key issues related to organizational environment, strategy, customers, products and services, processes and activities, participants, and information and technologies – all relevant for each phase of the transition process. This research contributes to both information systems (IS) and service science research, bringing the key service research priority of “service infusion” to the attention of IS researchers.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3
Fig. 4

Similar content being viewed by others

References

  • Alter, S. (1999). A general yet useful theory of information systems. Communications of the AIS, 1(13), 1–70.

    Google Scholar 

  • Alter, S. (2000). A general, yet useful theory of information systems. Proc. of the AMCIS 2000 Conference. AIS. Paper 22.

  • Alter, S. (2002). The work system method for understanding information systems and information systems research. Communications of the Association for Information Systems, 9, Article 6, 90–104.

  • Alter, S. (2004). A work system view of DSS in its forth decade. Decision Support Systems, 38, 319–327.

    Article  Google Scholar 

  • Alter, S. (2006). Work systems and IT artefacts–does the definition matter? Communications of the Association for Information Systems, 17(Article 14), 299–313.

    Google Scholar 

  • Alter, S. (2008). Defining information systems as work systems: implications for the IS field. European Journal of Information Systems, 17, 448–469.

    Article  Google Scholar 

  • Alter, S. (2010a). Viewing systems as services: a fresh approach in the IS field. Communications of the Association for Information Systems, 26, Article 11, 195–224.

    Google Scholar 

  • Alter, S. (2010b). Work system theory: an integrated, evolving body of assumptions, concepts, frameworks, and principles for analyzing and designing systems in organizations. Proc. of JAIS Theory Development Workshop. Sprouts: Working Papers on Information Systems, 10(80).

  • Alter, S. (2010c). Bridging the chasm between sociotechnical and technical views of systems in organisations. Proc. of the ICIS 2010 Conference. St. Louis: AIS. Paper 54.

    Google Scholar 

  • Alter, S. (2012). Genuinely service-oriented enterprises: using work system theory to see beyond the promise of efficient software. Proceedings of the Eighteenth Americas Conference on Information Systems, Seattle, 9–12, AIS.

  • Alter, S. (2013). Work System theory: overview of core concepts, extensions, and challenges for the future. Journal of the Association for Information Systems, 14(2), Article 1.

    Google Scholar 

  • Amaratunga, D., & Baldry, D. (2001). Case study methodology as a means of theory building: performance measurement in facilities management organizations. Work Study, 50(3), 95–105.

    Article  Google Scholar 

  • Baines, T. S., Lightfoot, H. W., Evans, S., Neely, A., et al. (2007). State-of-the-art in product-service systems. Journal of Engineering Manufacture, 221(10).

  • Ballantyne, D., Frow, P., Varey, R. J., & Payne, A. (2011). Value propositions as communication practice: taking a wider view. Industrial Marketing Management, 40, 202–210.

    Article  Google Scholar 

  • Barrett, M., Davidson, E., Phabhu, J., & Vargo, S. L. (2015). Service innovation in the digital age: key contributions and future directions. MIS Quarterly, 39(1), 135–154.

    Google Scholar 

  • Benbya, H., & McKelvey, B. (2006). Using coevolutionary and complexity theories to improve IS alignment: a multi-level approach. Journal of Information Technology, 20(3), 141–151.

    Google Scholar 

  • Bitner, M., Ostrom, A., & Morgan, F. (2007). Service Blueprinting: A Practical Technique for Service Innovation. Center for Services Leadership, Arizona State University Working Paper, 1–24. 

  • Bitner, M. J., Brown, S., Goul, M., & Urban, S. (2010). Service Science Journey: Foundations, Progress, and Challenges. Service science, management and engineering : education for the 21st Century. New York, NY : Springer US,  227–233

  • Bowen, D. E., & Schneider, B. (2014). A service climate synthesis and future research agenda. Journal of Service Research, 17(1), 5–22.

    Article  Google Scholar 

  • Carlile, P. R. (2004). Transferring, translating, and transforming: an integrative framework for managing knowledge across boundaries. Organization Science, 15, 555–568.

    Article  Google Scholar 

  • Cecez-Kecmanovic, D. (2011). On methods, methodologies and how they matter. Proc. of the European Information Systems Conference ECIS 2011, Paper 233. AIS.

  • Chan, Y. E. (2002). Why haven’t we mastered alignment? The importance of informal organization structure. MISQ Executive, 1(2), 97–112.

    Google Scholar 

  • Chan, Y. E., & Reich, B. H. (2007). It alignment: what have we learned? Journal of Information Technology, 22(4), 297–315.

    Article  Google Scholar 

  • Chesbrough, H., & Spohrer, J. (2006). A research manifesto for services sciences. Communications of the ACM, 49(7), 35–40.

    Article  Google Scholar 

  • Crowley, C., Harre, R., & Tagg, C. (2002). Qualitative research and computing: methodological issues and practices in using QSR NVivo and NUD*IST. International Journal of Social Research Methodology, 5(3), 193–197.

    Article  Google Scholar 

  • Cuganesan, S., & Dumay, J. (2009). Reflecting on the production of intellectual capital visualizations. Accounting, Auditing & Accountability Journal, 22(8), 1161–1186.

    Article  Google Scholar 

  • De Haes, S., & Van Grembergen, W. (2009). An exploratory study into IT governance implementations and its impact on business/IT alignment. Information Systems Management, 26(2), 123–137.

    Article  Google Scholar 

  • Deetz, S. (1996). Describing differences in approaches to organization science: rethinking burrel and Morgan and their legacy. Organization Science, 7, 191–207.

    Article  Google Scholar 

  • Demirkan, H., Kauffman, R. J., Vayghan, J. A., Fill, H.-G., Karagiannis, D., & Maglio, P. P. (2008). Service-oriented technology and management: perspectives on research and practice for the coming decade. Electronic Commerce Research and Applications, 7, 356–376.

    Article  Google Scholar 

  • Eaton, B., Elaluf-Calderwood, S., Sorensen, C., & Yoo, Y. (2015). Distributed tuning of boundary resources: the case of apple’s iOS service system. MIS Quarterly, 39(1), 217–243.

    Google Scholar 

  • Feagin, J., Orum, A., & Sjoberg, G. (Eds.) (1991). A case for case study. Chapel Hill, NC: University of North Carolina Press.

    Google Scholar 

  • Fonstad, N. O., & Subramani, M. (2009). Building enterprise alignment: a case study. MISQ Executive, 8(1), 31–41.

    Google Scholar 

  • Gebauer, H., & Friedli, T. (2005). Behavioural implications of the transition process from products to services. The Journal of Business and Industrial Marketing, 20(2), 70–80.

    Article  Google Scholar 

  • Gebauer, H., & Kowalkowski, C. (2012). Customer-focused and service focused orientation in organizational structures. The Journal of Business and Industrial Marketing, 27(7), 527–537.

    Article  Google Scholar 

  • Geertz, C. (1973). The interpretation of cultures. New York: Basic Books.

    Google Scholar 

  • Gountas, S., Gountas, J., & Mavondo, F. T. (2014). Exploring the association between standards for service delivery (organizational culture), co-worker support, self-efficacy, job satisfaction and customer orientation in the real estate industry. Australian Journal of Management, 39, 107–126.

    Article  Google Scholar 

  • Gregor, S. (2006). The nature of theory in information systems. MIS Quarterly, 30(3), 611–642.

  • Hammersley, M. (1989). The dilemma of qualitative research. Herbert blumer and the Chicago tradition. London: Routledge.

    Google Scholar 

  • Henderson, J. C., & Venkatraman, N. (1999). Strategic alignment: leveraging information technology for transforming organizations. IBM Systems Journal, 38(2–3), 472–484.

    Article  Google Scholar 

  • Homburg, C., Workman, J. P., & Jensen, O. (2000). Fundamental changes in marketing organization: the movement toward a customer-focused organizational structure. Journal of Marketing, 28(4), 459–478.

    Article  Google Scholar 

  • IfM & IBM (2008). Succeeding through service innovation: A service perspective for education, research, business and government. Cambridge: University of Cambridge Institute for Manufacturing Available at www.ifm.eng.cam.ac.uk/ssme.

    Google Scholar 

  • Johnson, A. M., & Lederer, A. L. (2005). The effect of communication frequency and channel richness on the convergence between chief executive and chief information officers. Journal of Management Information Systems, 22(2), 227–252.

    Google Scholar 

  • Karpen, I. O., Bove, L. L., & Lukas, B. A. (2012). “Linking service-dominant logic and strategic business practice: a conceptual model of a service-dominant orientation. Journal of Service Research, 15(1), 21–38.

    Article  Google Scholar 

  • Karpovsky, A., & Galliers, R. D. (2015). Aligning in practice: from current cases to a new agenda. Journal of Information Technology, 30, 136–160.

    Article  Google Scholar 

  • Kim, M., Song, J., & Triche, J. (2015). Towards an integrated framework for innovation in services: a resource-based view and dynamic capabilities approach. Information Systems Frontiers, 17(3), 533–546.

    Article  Google Scholar 

  • Llewellyn, S. (1999). Methodological themes: narratives in accounting and management research. Accounting, Auditing & Accountability Journal, 12(2), 220–236.

    Article  Google Scholar 

  • Luftman, J., Papp, R., & Brier, T. (1999). Enablers and inhibitors of business-IT alignment. Communications of the AIS, 1(3), 1–33.

    Google Scholar 

  • Lusch, R. F., & Nambisan, S. (2015). Service innovation: a service-dominant logic perspective. MIS Quarterly, 39(1), 155–175.

    Google Scholar 

  • Lusch, R. F., Vargo, S., & O’Brien, M. (2007). Competing through service: insights from service-dominant logic. Journal of Retailing, 83(1), 5–18.

    Article  Google Scholar 

  • Maglio, P. S., & Spohrer, J. (2008). Fundamentals of service sciences. Journal of the Academy of Marketing Science, 36(1), 18–20.

    Article  Google Scholar 

  • Mason, J. (2002). Qualitative research (2nd ed., ). London: Sage Publications.

    Google Scholar 

  • Mehta, M., & Hirschheim, R. (2007). Strategic alignment in mergers and acquisitions: theorizing IS integration decision making. Journal of the Association for Information Systems, 8(3), 143–174.

    Google Scholar 

  • Myers, M. (2009). Qualitative research in business and management. London: Sage Publications.

    Google Scholar 

  • Neely, A. (2008). Exploring the financial consequences of the servitization of manufacturing. Operations Management Research, 1(2), 103–118.

    Article  Google Scholar 

  • Neu, W., & Brown, S. W. (2005). Forming successful business-to-business services in goods-dominant firms. Journal of Service Research, 8(1), 3–17.

    Article  Google Scholar 

  • Nguyen, B. V., Burstein, F., & Fisher, J. (2015). Improving service of online health information provision: a case of usage-driven design for health information portals. Information Systems Frontiers, 17(3), 493–511.

    Article  Google Scholar 

  • Oliva, R., & Kallenberg, R. (2003). Managing the transition from products to services. International Journal of Service Industry Management, 14(2), 160–172.

    Article  Google Scholar 

  • Orlikowski, W. J., & Scott, S. V. (2015). The algorithm and the crowd: considering the materiality of service innovation. MIS Quarterly, 39(1), 433–474.

    Google Scholar 

  • Ostrom, A. L., et al. (2010). Moving forward and making a difference: research priorities for the science of service. Journal of Service Research, 13(1), 4–36.

  • Ostrom, A. L., Parasuraman, A., Bowen, D. E., Patricio, L., & Voss, C. A. (2015). Service Research Priorities in a Rapidly Changing Context. Journal of Service Research, 18(2), 127–159.

  • Palmer, J. W., & Markus, M. L. (2000). The performance impacts of quick response and strategic alignment in specialty retailing. Information Systems Research, 11(3), 241–259.

    Article  Google Scholar 

  • Reynolds, P., & Yetton, P. (2015). Aligning business and IT strategies in multi-business organizations. Journal of Information Technology, 30, 101–118.

    Article  Google Scholar 

  • Rust, R. T., & Miu, C. (2006). What academic research tells us about service. Communications of the ACM, 49(7), 49–54.

    Article  Google Scholar 

  • Schneider, B., White, S. S., & Paul, M. C. (1998). Linking service climate and customer perceptions of service quality: test of a causal model. Journal of Applied Psychology, 83(2), 150–163.

    Article  Google Scholar 

  • Seethamraju, R. (2015). Adoption of software as a service (saas) enterprise resource planning (ERP) systems in small and medium sized enterprises. Information Systems Frontiers, 17(3), 475–492.

    Article  Google Scholar 

  • Shah, D., Rust, R. T., Parasuraman, A., Staelin, R., & Day, G. S. (2006). The path to customer centricity. Journal of Service Research, 9(2), 113–124.

    Article  Google Scholar 

  • Singleton, R. A., & Straits, B. C. (2005). Approaches to social research (fourth (Edition ed., ). New York: Oxford University Press.

    Google Scholar 

  • Siurdyban, A. (2014). Understanding the IT/business partnership: a business process perspective. Information Systems Frontiers, 16, 909–922.

    Article  Google Scholar 

  • Smith, L., Maull, R., & Ng, I. C. L. (2014). Servitization and operations management: a service dominant-logic approach. International Journal of Operations and Production Management, 34(2), 242–269.

    Article  Google Scholar 

  • Song, J., Baker, J., & Davis, F. D. (2015). Special section of the role of information technology in service delivery. Information Systems Frontiers, 17(3), 471–474.

    Article  Google Scholar 

  • Spohrer, J., Maglio, P. P., Biley, J., & Gruhl, D. (2007). Steps towards a science of service systems. IEEE Computer, 40(1), 71–78.

    Article  Google Scholar 

  • Spohrer, J. S., Demirkan, H., & Krishna, V. (2011). Service and science. In H. Demirkan et al. (Eds.), The Science of Service Systems, Service Science: Research and Innovations in the Service Economy, 325–358. Springer.

  • Sriviastava, S. C., & Shainesh, G. (2015). Bridging the service divide through digitally enabled service innovations: evidence from Indian healthcare service providers. MIS Quarterly, 39(1), 245–267.

    Google Scholar 

  • Straus, B. (2008). International service research – status quo, developments, and consequences for the emerging services sciences. in Straus, B. et al. (Eds). Service Sciences: Fundamentals, Challenges and Future Opportunities. 57–70. Springer, Berlin.

  • Szmigin, I., & Foxall, G. (2000). Interpretive consumer research: how far have we come? Qualitative Market Research: An International Journal, 3(4), 187–197.

    Article  Google Scholar 

  • Tamm, T., Seddon, P., Shanks, G., & Reynolds, P. (2011). How do enterprise architecture add value to organisations? Communications of the Association for Information Systems, 28, Article 10.

    Google Scholar 

  • Tang, J., Zhang, P., & Wu, P. F. (2015). Categorizing consumer behavior responses and artifact design features: the case of online advertising. Information Systems Frontiers, 17(3), 513–532.

    Article  Google Scholar 

  • Van Grembergen, W., & De Haes, S. (2009). Enterprise governance of information technology: achieving strategic alignment and value. New York: Springer-Verlag Inc..

    Google Scholar 

  • Vandermerwe, S., & Rada, J. (1988). Servitization of business: adding value by adding services”. European Management Journal, 6(4), 314–324.

    Article  Google Scholar 

  • Vargo, S. L., & Lusch, F. L. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68, 1–17.

    Article  Google Scholar 

  • Vargo, S. L., & Lusch, F. L. (2008). Service dominant logic: continuing the evolution. Journal of the Academy of Marketing Science, 36(1), 1–10.

    Article  Google Scholar 

  • Walsham, G. (2006). Doing interpretive research. European Journal of Information Systems, 15, 320–330.

    Article  Google Scholar 

  • Zachman, J. A. (2008). The Zachman FrameworkTM: the official concise definition. Zachman International enterprise architecture, http://www.zachmaninternational.com/index.php/home-article/13#maincol.

  • Zeithaml, V. A., Brown, S. W., Bitner, M. J., & Salas, J. (2014). Profiting from services and solutions: what product-centric firms need to know. New York: Business Expert Press.

Download references

Author information

Authors and Affiliations

  1. Business Information Systems Discipline, Business School, University of Sydney, Building H70, Room 4072, Sydney, 2006, NSW, Australia

    Olivera Marjanovic

  2. Accounting Discipline, Business School, The University of Sydney, Building H69, Room 309, Sydney, 2006, NSW, Australia

    Vijaya Murthy

Authors
  1. Olivera Marjanovic
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Vijaya Murthy
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Olivera Marjanovic.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Marjanovic, O., Murthy, V. From product-centric to customer-centric services in a financial institution – exploring the organizational challenges of the transition process. Inf Syst Front 18, 479–497 (2016). https://doi.org/10.1007/s10796-015-9606-x

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10796-015-9606-x

Keywords

Search

Navigation