Exploring the servitization path: a conceptual framework and a case study from the capital goods industry

Abstract

Performing servitisation requires choice consistency in terms of manufacturing structure, service structure, and the coupling between them. In this paper, we rely on the manufacturing strategy and service innovation literature to build a conceptual framework in order to investigate a servitisation path in industry. This framework aims at describing both the product-oriented production structure and the service-oriented production structure, at key points of a firm's history. We use this framework within a case study from the capital goods industry, and show its relevance as a support for the diagnosis of consistencies or inconsistencies in strategic choices relating to the design of the product-service production system throughout time.

The Role of Human Resource Management (HRM) for the Implementation of Sustainable Product-Service Systems (PSS)—An Analysis of Fashion Retailers

“…Rewards can even have an adverse effect and reduce employees' intrinsic motivation because they can be perceived as a signal that the task or function is unappealing since otherwise no incentive would be needed [201,204,205]. One explanation for the results of this study could be that most PSS providers have a traditional manufacturing background and still run a production-focused business model as their core business but have founded a separate unit for PSS [60,206]. In manufacturing industries, rewarding of employees is commonly based on objectively measurable output [184].…”

Employee motivation in product-service system providers

“…Many PSS providers have a manufacturing and thus production-focused background (Vandermerwe and Rada 1988, Kreye et al 2013, Peillon et al 2015. They thus often have a tradition of motivating and rewarding their employees based on measurable outputs in comparison to defined targets.…”

“…However, many PSS providers fail to achieve these potential benefits (Neely 2008, Benedettini et al 2015 due to difficulties in implementing a servitisation strategy. Services require fundamentally different operations to traditional manufacturing (Alghisi and Saccani 2015, Peillon et al 2015, Rapaccini 2015. Operations in PSS provision are highly dependent on the individual service employee because they are the contact point with the customer (Bitran et al 2008) and facilitator of the customer relationship .…”

Maturity-based approach for the development of environmentally sustainable product/service-systems

“…Define the level of customization of the PSS offering according to the business model [14], [40], [69] BP16 Assess strengths and weaknesses of the current product portfolio and markets [12] BP17 Identify the market value of the PSS compared to the competing product in terms of tangible and intangible value [12], [51], [60] BP18 Develop service-oriented capabilities in corporate culture, human resource management, and organization structures [2], [70] BP19…”

“…Strategic couple the manufacturing system and the service system [53], [66], [70] BP20 Develop a service-driven strategy [3] BP21 Search for value proposition opportunities throughout the entire product life cycle [3], [49], [71] BP22…”