Moving base into high-value integrated solutions: a value stream approach

Some of the world's leading suppliers are developing strategies to move into the provision of innovative combinations of products and services as 'high-value integrated solutions' tailored to each customer's needs. Rather than simply 'moving downstream' into services (as much of the business strategy literature assumes), this paper argues that the provision of integrated solutions is attracting firms-traditionally based in manufacturing and services-to occupy a new base in the value stream centred on 'systems integration'. In addition to an ability to design and integrate systems using internal or external sources of product supply, these firms are developing novel combinations of service capabilities (operations, business consultancy and finance) required to provide complete solutions to each customer's needs.