Development and implementation of business solutions

This paper reports one case study of a multi-company, multi-country case study research focused on the process of creation and implementation of business solutions. It finds that business solutions are driven by forces emerging from the business environment. These forces keep changing, redefining the problem and therefore the scope of the business solution. Customers approach suppliers to work together in finding solutions to business problems that require more than the standard use of existing products and services. Suppliers respond based on their evaluation of the attractiveness of the solution in a larger market. Suppliers work with customers to find solutions as the solutions are deemed sources of competitive advantage and potentially deliver greater profits than the sale of products and services only. Once the solution is deployed suppliers aim to standardise the solution in order to reach further markets. Customers also want to see the solutions standardised so other suppliers are capable to offer similar solutions and thus they are not locked into a relationship with one supplier.Trading business solutions instead of products and services only, poses various challenges to both suppliers and customers. For example the need for changing personnel’s mental models from product and services orientation to solutions orientation, the coordination mechanisms that need to be put in place to achieve the goals of a proposed business solution, and the risks for manufacturing companies of extending offerings through customization, bundling, or broadening its range. Successful business solutions encourage more intense competition, so although they may create competitive advantage, suppliers cannot expect this to last for very long.