Chapter 2: Product/Service Development

Title: Process design elements for managing service complexity. an empirical analysis in the telecommunication industry

Author(s): Oliver Budde, Julius D. Golovatchev, Christian Wurm

Address: Research Institute for Rationalization and Operations Management, Aachen University, Pontdriesch 14/16, D-52062 Aachen, Germany | Detecon International GmbH, Oberkasseler Str. 2, D-53227 Bonn, Germany | Detecon International GmbH, Oberkasseler Str. 2, D-53227 Bonn, Germany

Reference: International Conference on Product Lifecycle Management 2010 pp. 75 - 89

Abstract/Summary: Telecommunication companies are currently faced by a strong growth in service complexity. Telecommunication companies try to win the race against new players with higher innovation rates in order to cope with the accelerated dynamic of the market. In addition, the convergence process in the ICT and media industry enables more enhanced products which in return results in a more complex development, marketing and retirement of the products. The answer of telecommunication companies to this increasing service complexity is product lifecycle management (PLM). PLM is a holistic approach of managing products throughout the entire lifecycle from idea creation to retirement. Four building blocks can be distinguished: PLM-strategy, PLM-processes, product structuring and PLM IT-architecture. depending on the industry characteristics, the process for the product and service lifecycle management vary in distinct aspects like process structure and activities, the functional integration of departments and personnel management. This paper examines these process design elements for the product lifecycle management in the telecommunication industry. Based on an international study the implementation degree of seven design elements have been examined across three complexity groups.

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