Modulization of service production and a thesis of convergence between service and manufacturing organizations

Abstract

A new phase in market competition in the service sector has developed in Denmark within the last 5 years. This has led to new behaviour by service firms and the evolution of new forms of the production organization in service firms. These tendencies are discussed on the basis of two Danish multiple case studies. It is assumed that the tendencies can be categorized as a development towards modulization. Modulization means that the service products will be standardized, but as modules which can be combined by the customer. This is discussed and a model of modulization is stated. This model develops some parts of the service management and marketing theories from the 1980s. Finally, it is argued that service organization and manufacturing organization are becoming similar and can be understood in terms of the same model.