Integrated Solutions and the Needed Capabilities: A Supplier and Customer Perspective : A Case Study of a Public-Private Business Relationship within the Defence and Security Sector

Sammanfattning: The manufacturing industry has experienced a change in the business environment during the last decade and has started to explore the possibilities of integrating products and services into new bundled offerings. A great deal has been published about this new phenomenon and it is often referred to as integrated solutions. When implementing an integrated solution it requires changes in the organizational structure, resulting in a need to develop further capabilities. Capabilities are explained as complex bundles of skills and accumulated knowledge possessed by organizations that enables them to coordinate their activities and make use of their assets. Previous literature has focused on the capabilities needed for suppliers that develop integrated solutions, leaving uncertainties regarding the needed capabilities for the customer. This research intends to investigate the capabilities needed from both the supplier’s and customer’s perspective and how they affect the development of integrated solutions. To investigate this, a thorough literature review was conducted to create a foundation of knowledge regarding the research area and resulted in a theoretical framework. The research follows a qualitative case study approach where empirical data was collected primarily through interviews but also by analyzing documents that resulted in needed capabilities for both actors. Furthermore, economic models were developed to provide a holistic view of the integrated solution and enable comparison with the current trading situation. The research resulted in five dimensions including capabilities needed for the supplier and four dimensions including capabilities needed for the customer when developing the integrated solution. The dimensions are: Control capability, Economic capability, Organizational capability, Production capability, and Relational capability. In this specific case study, the production capability dimension was considered unique for the supplier and did not iterate from the perspective of the customer. Apart from this, the dimensions were considered important for both actors. The findings indicate that the capabilities possessed by both the supplier and the customer affect the integrated solution and that it is important to investigate the needed capabilities form the perspective of both actors before developing the integrated solution. However, there were differences since some capabilities were required by only one actor and some were considered more or less essential depending on the actor. Furthermore, the findings imply that the uniqueness of the business relationship and the industry may affect the needed capabilities.