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Identifying uncertainties for industrial service delivery: a systems approach

Service delivery by industrial firms is increasingly seen as an influential factor for sustained profits. Across industry, this is typically achieved through long term contracts that aim to achieve performance, results, solutions, and so on. However, the increasing shift towards a service-oriented approach for production has created a number of challenges that originate from uncertainties that are experienced across supply networks. Along these lines, this research adopts a soft systems based approach to identify and categorise the uncertainties that are experienced particularly at the bidding stage of service contracts. These uncertainties significantly affect the cost and performance of service-oriented projects. This article presents the findings of a 3-year study with 22 aerospace experts from naval and defence industries that acted as key informants. It seeks to contribute to knowledge in research and industry by identifying and categorising uncertainties for industrial service delivery. Using the findings of the study, the article concludes by discussing implications and future challenges for academe and practice.