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Global competition and declining margins have made enterprises in diverse industries increasingly aware that assuring low cost,product performance and high quality is no longer sufficient for long-term Success.Integrating products and services to customized solutions can help firms to differentiate from their competitors.Based on 1 1 in-depth interviews with managers from solution providers and an exploratory survey with 45 solution providers we derive a four-step process of value creation as well as a set of critical activities and pitfalls within each step.Selling solutions require customer-supplier relational processes comprising analysis/consulting,design/configuration,implementation/delivery,and support/operation.To get a better understanding of the relational process we adopted this perspective on creating solutions in order to identify crucial routines and activities.Two main capabilities within this process can be identified:customer interaction and project managemenL Both capabifities are required in order to deliver more effective solutions at profitable prices.