Table 4

Dissimilarities between Mectop and Apitec's DST: A multilevel perspective

MectopApitec
Network levelNetwork partners, trust and power
Arms-length relationship with customersClose relationships with customers. The AFLUX application idea is presented to Apitec by one of its customers
Previous positive collaborations with consulting firm Informa have established a relationship of trust. Informa suggests strategic DS change to MectopA previously difficult collaboration with software supplier Ergon sets the tone for the co-development of AFLUX
 
Integrated systems
 Low integration between Mectop's, its clients and supplier's system. The developed digital solution does not directly influence client's core processesMedium to high integration between Apitec's and its client's operations. High dependency on the software supplier's systems. The digital solution deeply integrates with and affects the core processes of Apitec's clients
Organizational levelStrategy development and business model design
Services offered as a new productServices offered to increase product sales
Top down implementation of a mostly predefined business and action plan developed and executed in collaboration together with external partner Informa. Clear managerial commitment toward DS all throughout the implementation phaseBottom-up development of a client requested solution. Trial and error approach. No external partner present to structure the initiative. Management's commitment fluctuates throughout the project
Clearly defined project scope, budget, objectives and measurementsProject scope, budget and objectives are unclear. Few measurements provided for project evaluation
Resource configurations, (dynamic) capabilities and resources
Little experience with selling services. Basic supporting services are offered for free at the start of the projectExperience with advanced servitization. Another digital application has already been sold to clients. Some experience with co-creating digital solutions with software partner Ergon and Apitec's clients (testers)
Digital products have been sold before but this is the first time the digital product is linked to services. Little to no experience co-creating with customers
Project champions are situated at top management levelProject champions are situated at middle management level
Organizational identity, structure and culture
Strong product-dominant logic at the start of the DST. Hierarchical and structured organizationStrong service-dominant logic at the start of the DST. Less hierarchical. Less organizational structures in place to support activities
Continuous realignment and change management
Clear, decisive organizational action is taken in response to distinguished misalignments. Management takes the lead in developing and implementing solutionsLimited managerial involvement leads to low awareness of misalignment and the urge for action. Organizational responses are delayed. Digitization lead and customers take the lead in looking for solutions
Microfoundational LevelMicrofoundations of organizational decision-making, routines and (dynamic) capabilities
Management perceives the success of MECSERVICES as intertwined with their own future (successful) careers. A shared perception of the need for change emerges early on in response to the external market push. Objectives from management and the innovation department are aligned. High commitment is shown throughout the entire projectManagement does not seem convinced of AFLUX's value for Apitec's future competitive advantage. Despite an initial mind shift in response to the external market push for innovation, managerial engagement and involvement quickly drop back to low levels of interest. Mobilization of top management and key influencers remains difficult throughout the project
Employees show initial resistance to the unfamiliar nature of the new service-oriented strategy. Trainings are organized to raise engagement and understanding of the tool. Together with Informa's support, Mectop succeeds at turning the situation aroundDespite previous positive experience in co-creating a digital solution with clients, high stress levels are experienced by the support team. The increasing amount of unresolved technical issues in combination with delayed organizational action moves the team from initial engagement to frustration to indifference. Eventually, customer contacts start to get affected
Mectop's sales team considers selling services less profitable since it is not rewarded via their commission. The team does not comply with the new DS strategy until additional organizational measures (KPIs and training) are takenConversations with disgruntled clients, affect the sales team's attitude toward AFLUX. Their initial suspiciousness turns into a reluctance to sell the application. Sales of the application come to a halt

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