LAUSR

Abstract This paper explores and rationalizes why a conventional product-centric manufacturing firm struggles to take the first steps toward servitization, especially towards the advanced services scenario. A case study research method has been applied to capture evidence from a conventional Danish manufacturing firm embarking on a servitization journey. The findings highlight two aspects: (1) managerial challenges and (2) operational conflicts. Eight managerial propositions are presented and collectively these contribute to resolve the complex situation that a conventional product-centric manufacturing firm deals with when it commits to transforming its organization toward integrated product-service, especially when going after advanced services. In addition, we bring together the key arguments between the servitization-related literature and the dilemma faced. The gap leads to three research propositions addressing the operations domain of servitization. We emphasize a need to investigate servitization from a holistic point of view.