University of Twente Student Theses
Mitigating Vendor Lock-in in the ERTMS Program : Exploring Strategies applied in the Railway Infrastructure Domain
Krakers, ir. S.B.G. (2024) Mitigating Vendor Lock-in in the ERTMS Program : Exploring Strategies applied in the Railway Infrastructure Domain.
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| Abstract: | Digital transformation is reshaping the infrastructure sector, bringing innovation however also the critical challenge of vendor lock-in. This study dives into vendor lock-in in infrastructure programs, spotlighting how digitalization complicates relationships, raises costs, and invites opportunistic behavior. Long-term client-supplier bonds and framework agreements create dependencies that stifle competition, hinder innovation, and inflate expenses. Despite heavy investments and public service commitments, vendor lock-in is underexplored in the infrastructure field. Using outsourcing theories, this research builds a framework from transaction cost economics and agency theory, identifying the causes, risks, and outcomes of vendor lock-in. High entry barriers and switching costs, fueled by digitalization and framework agreements, reinforce lock-in, with limited suppliers and market dynamics worsening the situation. A case study of ProRail's Central Safety System contract with Thales in the ERTMS program showcases how vendor lock-in can be mitigated. ProRail's strategies included mutual hostaging, flexible contracts, and fostering dynamic capabilities, yet challenges remain in managing large-scale complexities. The study emphasizes the need for constant adaptation and strategic foresight to tackle vendor lock-in, urging industry-wide awareness and proactive risk management for successful infrastructure programs. Further research is essential to explore vendor lock-in across various contracts, particularly in later stages, for deeper insights and effective solutions. |
| Item Type: | Essay (Master) |
| Clients: | ProRail, Utrecht, Netherlands |
| Faculty: | ET: Engineering Technology |
| Subject: | 56 civil engineering |
| Programme: | Construction Management and Engineering MSc (60337) |
| Link to this item: | https://purl.utwente.nl/essays/99814 |
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