Challenges of Lifecycle Service Business for Virtual Organisations

Iiro Salkari, Henri Hytönen

Research output: Chapter in Book/Report/Conference proceedingChapter or book articleProfessional


Many industrial Virtual Organisations (VOs) operate in manufacturing industry. Their business focus has been on investment product deliveries to industrial customers. Now the needs of their customers are changing. Besides a single delivery, their customers are increasingly interested in the lifecycle services related to their investments. It seems that in many cases, the ability to commit to the lifecycle services is becoming a prerequisite for getting the contract for the investment product delivery. This sets challenges for companies, who make these deliveries as VOs. A VO is a temporary collaboration for a specific task, but lifecycle services require long term commitment. This paper discusses and analyses the ongoing business focus shift from transaction and delivery centric towards lifecycle business centric in the context of industrial manufacturing VOs. The paper identifies challenges that this shift in focus set for VOs. It also analyses some prevailing approaches for VOs to provide lifecycle services. Still, many questions remain open, and thus this paper can be seen as setting some questions for the future research in the area of VOs and industrial lifecycle service business.
Original languageEnglish
Title of host publicationNetwork-Centric Collaboration and Supporting Frameworks
Subtitle of host publicationIFIP TC5 WG 5.5 Seventh IFlP Working Conference on Virtual Enterprises, 25’27 September 2006, Helsinki, Finland
ISBN (Electronic)978-0-387-38269-2
ISBN (Print)978-0-387-38266-1
Publication statusPublished - 2006
MoE publication typeD2 Article in professional manuals or guides or professional information systems or text book material


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