Steering manufacturing firms towards service business model innovation

Increasingly, manufacturing firms are turning to services as a new way of creating and capturing value. Despite its potential benefits, many new product-service providers struggle to deploy service activities effectively, not least because they fail to refect the presence of service activities in their performance management systems. This article reports the results of an in-depth case study, which examines how manufacturers can steer the transition towards services. It shows that manufacturing firms need to emphasize two separate but related dimensions of the market performance of service activities: "service adoption," refecting the proportion of customers who purchase the manufacturer's services; and "service coverage," signaling the range of service elements or the comprehensiveness of the service contract that customers opt for. These two indicators, refecting service market performance, should be supplemented with a "complementarity index" designed to disclose whether the relationship between products and services is reinforcing or substitutive. When combined, these indicators allow manufacturing firms to deploy a service-based business model in an integrated and sustainable manner. © 2013 by The Regents of the University of California. All rights reserved.

FBS Linkage ontology and technique to support engineering change management

© 2014, Springer-Verlag London. Engineering changes are essential for any product development, and their management has become a crucial discipline. Research in engineering change management has brought about some methods and tools to support dealing with changes. This work extends the change prediction method through incorporation of a function–behaviour–structure (FBS) scheme. These additional levels of detail provide the rationales for change propagation and allow a more proactive management of changes. First, we develop the ontology of this method based on a comprehensive comparison of three seminal functional reasoning schemes. Then, we demonstrate the FBS Linkage technique by applying it to a diesel engine. Finally, we evaluate the method.