How to Become Solution Provider: System Supplier's Strategic Tools

Abstract

Purpose. Large system suppliers play an important role in globalization both in the emerging information and communications technology (ICT) and matured engineering fields. This article addresses the management mechanisms through which these suppliers try to expand their original role toward the role of a solution provider. The role expansion is examined by exploring (1) what capabilities do the roles of equipment/material supplier and solution provider require and (2) how can the equipment/material supplier achieve the role of a solution provider? Methodology. A multicompany international case study, which particularly addressed the long-term development of three supplier–customer relationships in the telecommunications industry. Findings. The results show how the role of a solution provider can be achieved through careful coordination of four identified supplier's customer activity sets (warranty services, support and maintenance activities, system extensions, and consulting and optimization services). This coordination target sets specific requirements for key account management organization. Contribution. The developed frameworks and propositions provide a clear contribution to the emerging theory of the system supplier's relationship management as well as practical tools for top executives and sales directors in industrial companies.