Technology Strategies for Transitioning from Products to Services

Research in this thesis is motivated by product transitions, historically first from physical products to virtual products and lately from virtual products to services. The recorded music industry was focused on understanding the dynamics of transitions from one generation of use to another. The recorded music industry was selected to study as it is one of the most dynamic and rapidly changing industries. Results of the most recent transition in the industry are deeply investigated. Utilizing numerical computing techniques, and mathematical models inspired by ecology sciences, a software package was created to analyze technology transitions. The software package was used to analyze the music industry. Accuracy of the technique was demonstrated and the model parameters were investigated and discussed. Effective strategies for the service transition are discussed. Limitations and characteristics of the transition are further investigated. Both new and existing firms from other industries who adapted well into such transitions are examined with the purpose of understanding critical points in their strategies that allowed them to execute such transitions successfully. Architectures of modern systems that reflect on the transition, such as product as a service are discussed. A few examples from the industry in which some of the critical components are transitioning to service model that resembles the ones in the music industry are given. Thesis Supervisor: James M. Utterback Title: David J. McGrath jr (1959) Professor of Management and Innovation and Professor of Engineering Systems