Final Project

Abstract

The problem statement guiding this project is – “How can ISS Facility Services’ procurement function increase value creation for the organization?” This project adopts an interpretivist philosophy with an inductive approach. A explorative research design, built to gain rich in-depth qualitative data, collected through semi-structured interviews. This methodical approach allowed for flexibility during the research and was chosen to prioritize context-specific understanding over generalizability, aligning with the research objective of providing practical, actionable recommendations tailored to ISS's environment. A key foundation in this project is understanding what service is and how value is created in service organizations. Value creation is defined not solely by financial efficiency but also includes social and environmental dimensions. The analysis is structured using the Layers of Business Environment model which provides a comprehensive structure for assessing the different layers of impact on ISS through relevant theoretical frameworks. This layered analytical approach ensures a holistic understanding of each layer and shows how ISS interact with its surrounding Macro environment, Industry environment, the competitors and market environment and the internal organizational core. The project concludes that ISS Facility Service’s procurement function hold significant potential to enhance organizational value creation but requires a continued strategic transformation effort. The actionable recommendations provided are designed to support the procurement function to strengthen itself as a strategic business driver, enabling ISS Facility Services to differentiate themselves from competitors and create long term competitive advantages. The recommendations boils down to a short priority list: High priority – Supplier partnerships, cross functional collaboration, data driven decisions Medium to high priority – sustainability focus, prioritizing strategic spend areas Medium priority – Operational excellence in standard categories, procurement maturity progression