Exploring the financial consequences of the servitization of manufacturing

Commentators suggest that to survive in developed economies manufacturing firms have to move up the value chain, innovating and creating ever more sophisticated products and services, so they do not have to compete on the basis of cost. While this strategy is proving increasingly popular with policy makers and academics there is limited empirical evidence to explore the extent to which it is being adopted in practice. And if so, what the impact of this servitization of manufacturing might be. This paper seeks to fill a gap in the literature by presenting empirical evidence on the range and extent of servitization. Data are drawn from the OSIRIS database on 10,028 firms incorporated in 25 different countries. The paper presents an analysis of these data which suggests that: [i] manufacturing firms in developed economies are adopting a range of servitization strategies-12 separate approaches to servitization are identified; [ii] these 12 categories can be used to extend the traditional three options for servitization-product oriented Product-Service Systems, use oriented Product-Service Systems and result oriented Product-Service Systems, by adding two new categories "integration oriented Product-Service Systems" and "service oriented Product-Service Systems"; [iii] while the manufacturing firms that have servitized are larger than traditional manufacturing firms in terms of sales revenues, at the aggregate level they also generate lower profits as a % of sales; [iv] these findings are moderated by firm size (measured in terms of numbers of employees). In smaller firms servitization appears to pay off while in larger firms it proves more problematic; and [v] there are some hidden risks associated with servitization-the sample contains a greater proportion of bankrupt servitized firms than would be expected. © Springer Science + Business Media, LLC 2009.

Improving communication in design: Recommendations from the literature

Communication permeates every aspect of an engineer's work-from clarifying product specifications to shaping social ties. This paper offers an overview of recommendations from literature to improve communication within and among engineering teams. We assume communication problems are often the outcome of underlying factors and that it is fruitful to study and improve these influences. Having been empirically elicited in prior research, 24 factors considered in this paper include, e.g., availability of information about product specifications, roles and responsibilities, and overview of sequence of tasks. To improve these factors in order to enable effective communication, this paper collates more than hundred recommendations from journal articles and textbooks published in the fields of engineering design, management science, sociology, and psychology. Recommendations include, for example, identify priorities through risk and bottleneck analysis, give clear descriptions and role expectations, and employ effective process modeling tools. Contributions of this paper are a list of recommendations for industry practitioners and an effort-benefit evaluation of individual recommendations. Copyright © 2002-2012 The Design Society. All rights reserved.

Information models used to manage engineering change: A review of the literature 2005-2010

Engineering change is a significant part of any product development programme. Changes can arise at many points throughout the product life-cycle, resulting in rework which can ripple through different stages of the design process. Managing change processes is thus a critical aspect of any design project, especially in complex design. Through a literature review, this paper shows the diversity of information models used by different change management methods proposed in the literature. A classification framework for organising these change management approaches is presented. The review shows an increase in the number of cross-domain models proposed to help manage changes.

Kick synchronization versus diffusive synchronization

The paper provides an introductory discussion about two fundamental models of oscillator synchronization: the (continuous-time) diffusive model, that dominates the mathematical literature on synchronization, and the (hybrid) kick model, that accounts for most popular examples of synchronization, but for which only few theoretical results exist. The paper stresses fundamental differences between the two models, such as the different contraction measures underlying the analysis, as well as important analogies that can be drawn in the limit of weak coupling. © 2012 IEEE.