Servitization requires the acquisition and development of service-oriented capabilities. Research has contributed considerably to the investigation of the necessary capabilities for successful servitization and the introduction of numerous service-based capabilities. However, previous studies typically focus on proposing a general set of capabilities or processes for servitization. There is limited knowledge of how a manufacturing company can identify the necessary capabilities and plan the corresponding development actions following its servitization context. Through two phases of a case study, this research proposes a service-oriented strategy formulation method. The method supports the analysis of manufacturing companies’ servitization contexts that lead to appropriate identification of the necessary capabilities for successful servitization. This method further guides the formulation of service-oriented strategies as the strategic logic in how manufacturing companies implement servitization, including the corresponding actions to develop the required capabilities. Finally, the application in a Japanese office machinery manufacturer illustrates the applicability and usability of the proposed method in facilitating the formulation of service-oriented strategies for the servitization of manufacturing companies.

One of the most promising business models towards economic circularity is product-service system (PSS). Despite its great potential benefits, shifting the traditional business model of a manufacturer into PSS business model commonly refers to service transition and triggers inconsistencies between strategic direction and organization arrangement at an operational level. The absence of alignment between the service transition strategy and the PSS business model is greatly emphasized as a crucial enabler, risk factor and key success factor of the service transition. However, limited academic works have concretely contributed to the strategic alignment. Through a systematic literature review, this paper proposes a PSS business alignment that enables the manufacturer to identify the strategic objective of its service transition strategy and align it with PSS business model. The theoretical version of the proposed framework is redefined and redeveloped through two cycles of action research involving 11 Japanese companies.

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Perturbations have a negative influence on the operation of the business system, which may weaken business performance. However, in the field of the product–service system (PSS), perturbation is still a rarely discussed concept. Researchers and managers have a limited understanding of perturbations in the context of PSS. This hinders PSS designers and managers to prepare for mitigation due to a lack of knowledge and information. Thus, this paper aims to build a taxonomy of PSS perturbation through a systematic literature review. To achieve this target, the authors have reviewed 171 papers and found 18 effective papers. Twenty-five items are considered effective ones that are directly related to PSS perturbation. The result of the review shows that PSS perturbations could be classified into six categories, namely, behavioral, social, environmental, competence, resource, and organizational perturbations. The proposed terminology and taxonomy appear to be effective, which could enable researchers to understand the scope of PSS perturbations on a conceptual level. This finding is also expected to provide useful knowledge and information for researchers who are interested in vulnerability analysis and the robust design of PSS.

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To realize a competitive product-service system, a manufacturer is required to change its closed business model and develop open and sustainable alliances with external partners. As an alternative business model, an open business model (OBM) is a new concept, replacing the closed model, that is highly dependent on the company’s resources. An OBM is realized via resource sharing and collaboration with external partners. By incorporating an OBM in its operations, a company can receive several benefits, such as long-term profits, by providing new customer value and diversifying risks due to uncertainty in the market environment. A considerable number of studies related to this concept have been conducted. However, a practical method for OBM design remains unavailable. It is therefore difficult to design an OBM via actual design procedures. To this end, the purpose of this study is to support a design for OBMs. To achieve this, eight dimensions of openness in OBMs are first identified. On the basis of these dimensions, the requirements for an OBM design guideline are defined, and the design guideline is proposed. The proposed design guideline includes three steps: requirement analysis, OBM design, and validation. The proposed method was applied in an OBM design workshop, and the usefulness of the design guideline was verified through an evaluation of the eight openness dimensions. Finally, directions for improving the design guideline are discussed as future works.