Solutions for Integrated Systems

Recent empirical evidences shows that in many sectors the provision of integrated bundles of products and services is increasing. An example is found in the information technology (IT) sector, in which ERP (Enterprise Resource Planning) systems comprising hardware, software, and technical support and assistance are increasingly offered as turnkey solutions. The IT clients do not buy single components from different firms. Instead, they purchase a complete ERP system from a single supplier that provides software and hardware as well as consultancy services, post-sales assistance, system customization, and hardware maintenance. In some situations it is also possible to outsource the management of the complete IT system to the external provider, that charges a fixed rate for the storage, management, and processing of data and information. The chapter will explore the implications for operations that firms should face while providing the new offering. In fact, firms that offer solutions are required to provide services previously carried out by business users (for example, after-sales support, maintenance, training, operations, financing, consultancy, and service provision). They must also develop embedded service technologies required to support the provision of integrated solutions. These include maintenance-oriented control technologies (mainly based on digital electronics), remote diagnostics, system operations, and so on.