Managing Collaborative and Distributed Team & Project WorksMonday, June 5, 2006 14.00 - 15.30, Hotel Golf Jupiter II
Gordon Sung, Researcher
CeTIM, Germany
Uroš Hribar, Senior Researcher
University of Maribor, Slovenia
David Balažic, Consultant
Microsoft Slovenia
Robert Korošec, Group leader
Oracle Slovenia
Gregor Lončar, Manager of Software Group
IBM Slovenia
Bernhard R. Katzy, Professor & Director
CeTIM- Center for Technology and Innovation Management
UniBw München, Germany & Universiteit Leiden, The Netherland
Richard Scudder, Chair
Information Technology and Electronic Commerce Department
Daniels College of Business, University of Denver, United States
Pascal Sieber, Director
Swiss Productivity Institute, Switzerland

The role of service bundling in creating viable eServices Monday, June 5, 2006 16.00 - 17.30, Hotel Golf Jupiter I
Timber Haaker, Researcher
TelematicaI Instituut, The Netherlands

Claas Müller-Rankenau, Research Associate
Institut für Wirtschaftsinformatik, Münster University, Germany

Ziv Baida, Researcher
Faculty of Economics and Business Administration, Free University Amsterdam, The Netherlands
Henny de Vos, Researcher
Telematica Institute, The Netherlands

Topic and issues
Bundling is the strategy of marketing two or more products and/or services as a package at a special price (Venkatesh & Mahajan, 1993). Bundling is a well-known practice in today’s e-markets. Consider for example bundling of mobile services with 'an almost for free' handset, or the ‘triple play’ bundle that provides telephony, Internet access and television, often on a single bill.

The value creating logic behind bundling may be different for different cases, e.g. depending on whether a commercial or not for profit service is considered. Bundling may be demand driven, e.g. when a provider aims at creating a bundle of services that responds and adapts to context dependent demands of a user. Or bundling may be intended to drive revenues, to create customer lock-in, to achieve economies of scale and scope, or to create entry barriers. Service bundles are typically offered by a number of organizations collaborating in a value network. The underlying business model that, among others, determines the way revenues are shared is crucial.

There are even more options for bundling mobile services, since these can be delivered via different networks on a number of alternative devices in varying situations and for varying prices. Therefore any final decision about adoption and use of mobile service bundles has to take characteristics of devices, networks, service bundles and price-levels into account, as well as the context and characteristics of users. Typical bundle characteristics are bundle composition, bundle focus, bundle price and bundling strategy (pure bundling versus mixed bundling).

Notwithstanding the wide application of bundling strategies still little is known about what constitutes a successful bundle. Clear guidelines neither for the design of service bundles, nor for the underlying business models are available.
This panel addresses the role of service bundling in creating viable e-services. Important issues regarding e-service bundles are:
  • What are generic design rules for creating viable e-service bundles regarding bundle composition, focus, price and strategy?
  • How can demand and supply be matched with service bundles?
  • How can service bundling provide new revenue streams for mobile services, e.g. from mobile advertising?