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1、Product,Process,andService:ANewIndustryLifecycleModelMichaelCusumanoMITSloanSchoolofManagement50MemorialDrive,E52-538Cambridge,MA02142-1347USA617-253-2574cusumano@mit.eduFernandoF.SuarezBostonUniversitySchoolofManagement595CommonwealthAve.,Room546-FBoston,Massachusetts02215,USA617-358-3572suarezf@bu
2、.eduSteveKahlMITSloanSchoolofManagement50MemorialDrive,E52-511Cambridge,MA02142-1347USA617-253-6680skahl@mit.eduMarch8,2007Product,Process,andServiceProduct,Process,andService:ANewIndustryLifecycleModelAbstractExistingmodelsofindustrylifecycleevolutiontendtofocusonchangesinproductsandprocessesandlar
3、gelyoverlooktheimportanceofservices.Salesofservices,however,arebecomingincreasinglysignificantintherevenuesofmanyindustrialandhigh-technologyfirmseitherbecauseofindustryevolutionorstrategicdecisionsorboth.Inthispaper,weextendlifecycletheorybyexplicitlyincorporatingtheroleofservicesatdifferentstagesi
4、nthepotentialevolutionofanindustry.Buildingontheliteratureinservicemanagementandindustryevolution,weprovidetheoreticalsupportforourpropositionsregardingthepotentialroleofservicesintheearly,mature,andpost-discontinuityphasesofanindustrylifecycle.Keywords:industrylifecycles,services,maturity,businessm
5、odelsProduct,Process,andService1.IntroductionOneofthemaintenetsofhowfirmsandindustriesevolveisthat,assomebusinessesmature,thebasisofcompetitionshiftsfromproductinnovationtoprocessinnovation(UtterbackandAbernathy1975;UtterbackandSuarez1993;Utterback1994;Klepper1996,1997;AdnerandLevinthal2001).Forexam
6、ple,themodelinitiallyproposedbyUtterbackandAbernathyin1975,holdsthat,earlyafterthebirthofanewindustry,firmscompetebaseduponproductdifferentiation,investingheavilyindevelopingnewproductfeaturesanddeterminingwhatconsumerswant.But,asthemarketmaturesandcustomerneedsbecomemoredefined,firmsmayshifttheirfo
7、custocompetingoncostandeconomiesofscale,investingmoreheavilyinmanufacturingandotherprocessesinordertomakeproductionoperationsmorespecializedandefficient.Thisproduct-processlifecyclemodeldoesnotholdfor
