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Few unfocused factories outperform competitors, but Focus is elusive because the environment is constantly evolving and this requires changes to a factory’s key tasks. So how can focus be achieved and sustained? We present insights derived from an historical analysis of the German Hewlett-Packard server plant which went through a series of Focus changes over the years. Using this example, we provide clues for the right timing of Focus changes and discuss critical structural and infrastructural changes required during the Focus transitions, as well as cross-functional coordination and leadership challenges. Our assertion is that production operations constitute a system that can adapt to disruptive Change by using the levers of manufacturing policies to stay focused on a limited but absolutely essential task which creates a strategic advantage.
The use of digital, IT-based components in physical products is becoming increasingly relevant in practice. Surprisingly, the strategic impact of these "digitized products" has not received a lot of attention in IS research so far. Extant papers on the topic rely on ambiguous terminology (e.g., "smart products", "cyber-physical systems", "digital product-service systems") and underlying concepts differ widely. Based on an extensive literature review, this article provides an overview of the different terms and identifies five conceptual elements that form the building blocks of digitized products in research: "hybridity" (i.e., the combination of digital and physical components), connectivity, smartness, digitized product-service bundles (servitization of digitized products), and digitized product ecosystems. The implication for practitioners is that each element comes with different managerial challenges that companies need to address when incorporating the respective element in their products. The research implication is that each conceptual element is supported by different theoretical streams.
