Influencing factors of successful transitions towards product-service systems: A simulation approach

Product-Service Systems (PSS) are new business strategies moving and extending the product value towards its functional usage and related required services. From a theoretical point of view the PSS concept is known since a decade and many Authors reported reasonable possible success factors: higher profits over the entire life-cycle, diminished environmental burden, and localization of required services. Nevertheless the PSS promises remain quantitatively unproven relaying on a simple theory that involves a few constructs with some empirical grounding, but that is limited by weak conceptualization, few propositions, and/or rough underlying theoretical logic. A plausible interpretation to analyze the possible evolution of a PSS strategy could be considering it as a new business proposition competing on a traditional Product-Oriented (PO) market, assumed at its own equilibrium state at a given time. The analysis of the dynamics associated to a possible transition from a traditional PO to a PSS strategy allows investigating the main parameters and variables influencing an eventual successful adoption. This research is worthwhile because organizations undergoing fundamental PSS strategy are concerned about change and inertia key processes which, despite equilibrium theory and because of negative feedback loops, could undermine, economically, the return of their PSS proposition. In this paper Authors propose a qualitative System Dynamics (SD) approach by considering the PSS as a perturbation of an existing PO market featured by a set of known parameters. The proposed model incorporates several PSS factors able to influence the success of a PSS proposition under a set of given and justified assumptions, attempting to place this business strategy in a dynamic framework.

Industrialization as a key element of sustainable product-service solutions

Product-service systems are seen by many authors to offer potential for significant sustainability benefit. Manufacturing companies are said to be essential to such a change through their influence over product performance and over the use and end-of-life stages. Yet linking these stages such that the producer is incentivized to improve the performance of later stages is still a challenge. This paper argues for placing the producer at the centre of a new arrangement: by seeking to utilize the producer's knowledge of designing and the knowledge of volume production, through creation of platforms, while cooperating closely with other actors. The paper describes three case studies that have used such an approach to design and implement new food production systems. Based on 12 months of action research observations, 10 participating organizations from the cases were studied, and the implemented solutions assessed for environmental, economic and social performance. The results demonstrate a high level of sustainability benefit is achievable using platforms and partners to design product-service systems, while highlighting that changes to production arrangements are necessary but not sufficient to improve whole life-cycle environmental performance of product-service systems, and that producers need to cooperate closely with other actors to achieve the claimed benefits.

A framework for designing product service systems

In this competitive globalizing scenario, manufacturers are adopting a strategy of bundling products and services into an integrated solution to create sustainable competitive advantage. Servitizing manufacturers are increasingly transforming their processes and practices to build product-service systems (PSS). During this transformation they require substantial support to face stringent challenges. Research in the PSS domain is heading towards the development of a design theory and methodology that facilitates the systematic creation of viable PSS conceptual designs. In this paper, various proposed design methods are reviewed and research gaps are summarized. Primarily, it has been observed that the importance of the capabilities of the stakeholders involved in designing PSS has not been noted in the proposed methods. Regarding this capability view point, a framework for designing PSS has been proposed. This framework highlights the important features required in designing PSS such as co-creation, responsibilities and competences. Every step in the framework has been explained with a case study involving laser systems used for manufacturing cutting operation.

The Impact of Contract Type on Service Provider Information Requirements

This paper is concerned with the role of information in the servitization of manufacturing which has led to “the innovation of an organisation’s capabilities and processes as equipment manufacturers seek to offer services around their products” (Neely 2009, Baines et al 2009). This evolution has resulted in an information requirement (IR) shift as companies move from discrete provision of equipment and spare parts to long-term service contracts guaranteeing prescribed performance levels. Organisations providing such services depend on a very high level of availability and quality of information throughout the service life-cycle (Menor et al 2002). This work focuses on whether, for a proposed contract based around complex equipment, the Information System is capable of providing information at an acceptable quality and requires the IRs to be examined in a formal manner. We apply a service information framework (Cuthbert et al 2008, McFarlane & Cuthbert 2012) to methodically assess IRs for different contract types to understand the information gap between them. Results from case examples indicate that this gap includes information required for the different contract types and a set of contract-specific IRs. Furthermore, the control, ownership and use of information differs across contract types as the boundary of operation and responsibility changes.

Which diagrams and when? Health workers' choice and usage of different diagram types for service improvement

Diagrammatic representations, such as process mapping and care pathways, have been often used for service evaluation and improvement in healthcare. While a broad range of diagrammatic representations exist, their application in healthcare has been very limited. There is a lack of understanding about how and which diagrams could be usable and useful to health workers. In this study, ten mental health workers were asked to discuss positive and negative issues around their service delivery using one or two diagrams of their choice out of seven different diagrams representing their service: care pathway diagram; organisation diagram; communication diagram; service blueprint; patient state transition diagram; free form diagram; geographic map. Their interactions with diagrams were video-taped for analysis. The patient state transition diagram was the most popular choice in spite of relatively low previous familiarity. The overall findings provided insight into a better use of diagrams in healthcare. © 2012 Springer-Verlag.

An integrated service-device-technology roadmap for smart city development

Firms and other organizations use Technology Roadmapping (TRM) extensively as a framework for supporting research and development of future technologies and products that could sustain a competitive advantage. While the importance of technology strategy has received more attention in recent years, few research studies have examined how roadmapping processes are used to explore the potential convergence of products and services that may be developed in the future. The aim of this paper is to introduce an integrated roadmapping process for services, devices and technologies capable of implementing a smart city development R&D project in Korea. The paper applies a QFD (Quality Function Deployment) method to establish interconnections between services and devices, and between devices and technologies. The method is illustrated by a detailed case study, which shows how different types of roadmap can be coordinated with each other to produce a clear representation of the technological changes and uncertainties associated with the strategic planning of complex innovations. © 2012 Elsevier Inc.

THE SENSITIVITY OF 2D COMPRESSOR INCIDENCE RANGE TO IN-SERVICE GEOMETRIC VARIATION

The loss mechanisms which control 2D incidence range are discussed with an emphasis on determining which real in-service geometric variations will have the largest impact. For the majority of engine compressor blades (Minlet>0.55) both the negative and positive incidence limits are controlled by supersonic patches. It is shown that these patches are highly sensitive to the geometric variations close to, and around the leading edge. The variations used in this study were measured from newly manufactured as well as ex-service blades. Over most the high pressure compressor considered, it was shown that manufacture variations dominated. The first part of the paper shows that, despite large geometric variations (~10% of leading edge thickness), the incidence range responded in a linear way. The result of this is that the geometric variations have little effect on the mean incidence range of a row of blades. In the second part of the paper a region of the design space is identified where non-linear behavior can result in a 10% reduction in positive incidence range. The mechanism for this is reported and design guidelines for its avoidance offered. In the final part of the paper, the linear behavior at negative incidence and the transonic nature of the flow is exploited to design a robust asymmetric leading edge with a 5% increase in incidence range.

Defining product-service network configurations and location roles: A current and future state analysis framework for international engineering operations

Many manufacturing firms have developed a service dimension to their product portfolio. In response to this growing trend of servitisation, organisations, often involved in complex, long-lifecycle product-service system (PSS) provision, need to reconfigure their global engineering networks to support integrated PSS offerings. Drawing on parallel concepts in 'production' networks, the idea of 'location role' now becomes increasingly complex, in terms of service delivery. As new markets develop, locations in a specific region may need to grow/adapt engineering service 'competencies' along the value chain, from design and build to support and service, in order to serve future location-specific requirements and, potentially, those requirements of the overall network. The purpose of this paper is to advance understanding of how best to design complex multi-organisational engineering service networks, through extension of the 'production' network location role concept to a PSS context, capturing both traditional engineering 'design and build' and engineering 'service' requirements. Copyright © 2012 Inderscience Enterprises Ltd.