Organising the business processes of a product servitised supply chain: a value perspective

Abstract

This paper develops a structured method from the perspective of value to organise and optimise the business processes of a product servitised supply chain (PSSC). This method integrates the modelling tool of e 3 value with the associated value measurement, evaluation and analysis techniques. It enables visualisation, modelling and optimisation of the business processes of a PSSC. At the same time, the value co-creation and potential contribution to an organisation's profitability can also be enhanced. The findings not only facilitate organisations that are attempting to adopt servitisation by helping avert any paradox, but also help a servitised organisation to identify the key business processes and clarify their influences to supply chain operations.

A QFD-Based Evaluation Method for Business Models of Product Service Systems

“…For example, QFD technique based methods were studied to evaluate and optimize a designed PSS component in light of customers' value demands, customers' budgets, and PSS characteristics [16][17][18]. The e 3 value based method is provided to evaluate and optimize the business processes of a PSSC [28]; it can achieve organization's profitability based on the cost arrangement of processes, converting the rate of cost of organizations and e 3 value method. However, these models also cannot fully support the evaluation and optimization of PSS business models due to that they only focus on dimensions of value proposition or some partial dimensions of value creation.…”

“…The purpose of PS offerings is to generate the best value for customers and organizations involved. However, the producer's sense of value differs from that of the user; that is, there are various forms of value for the same item [28]. In PS offerings, the concept of value is the relative worth, utility, or importance of a PSS [29].…”

“…Usually, it can be represented by ROI [19] or the ratio of function to cost. Here, the function is the utility of the tangible products while it is the effect or performance to be achieved for the intangible service [28]. From the perspective of customers, the PSS value is customer value which is constantly changing by the tradeoff between the relevant "gives" and "gets" [30].…”

“…Indicators of quality are becoming more complex and subjective due to more services added in the lifecycle of products [22]. The value of these indicators relies on qualitative characteristics of PSS, and the sacrifice or cost is usually the price of a PSS [19,28]. The measurement methods of customer value are divided into two types.…”

“…The reason for this situation is that the value-added mechanism is ignored by using these normalized matrixes. According to the value-in-change theory, value-added phenomenon happens in the exchange of PSS components between a supplier and a customer [28]. In this exchange process, a supplier converts its cost to more value during the value creation of delivering PSS components to customers.…”