Towards a methodology to engineer industrial product-service system – Evidence from power and automation industry

Pezzotta, Giuditta; Pirola, Fabiana; Rondini, Alice; Pinto, Roberto; Ouertani, Mohamed Zied

doi:10.1016/j.cirpj.2016.04.006

Cited by 59 publications

(39 citation statements)

References 61 publications

(38 reference statements)

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“…Manufacturing firms generally perceive implementation and adoption of advanced services as a high-risk strategy (Benedettinini et al, 2015), perhaps due partly to traditional product-based mind-set, and the orientation of resources and capabilities, which have been primarily towards product design and innovation (Pezzotta et al, 2016). Recently, a few experts have addressed the other side of the issue, uncertainties and risks associated with servitization.…”

Section: Risk Perception In Implementing Advanced Servicesmentioning

confidence: 99%

Network positioning and risk perception in servitization: evidence from the UK road transport industry

Bigdeli

Bustinza

Vendrell‐Herrero

et al. 2017

International Journal of Production Research

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For manufacturing firms, the integration of advanced services into their customer offerings has become a crucial decision. Such commercial decisions require weighting the risks and rewards of implementing a business model based on advanced services. While academic experts acknowledge uncertainty of returns on investment despite potential advantages, research generally fails to address the challenge of calculating the actual risks involved in 'servitization'. This paper seeks better understanding of managers' risk perception and of servitization implications for strategic partnerships and network positioning, while considering the impact of factors such as entry barriers, technological knowledge and position in the supply chain (SC). Qualitative evidence is drawn from an industrial case study involving firms in the UK's road transport industry: fourteen in-depth interviews with senior executives from seven companies (manufacturers, operators, technology providers). During interviews, a payment card exercise measured risk perception and willingness to take strategic 'make-or-buy' decisions. Results suggest that implementing advanced services is perceived as a high-risk strategy, especially when firms lack in-house technological knowledge. However, collaborative strategic partnerships within supply chain networks can mitigate this risk and prove crucial to building entry barriers against external competitors. Based on these findings, implications for network positioning are developed.

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Section: Risk Perception In Implementing Advanced Servicesmentioning

confidence: 99%

Network positioning and risk perception in servitization: evidence from the UK road transport industry

Bigdeli

Bustinza

Vendrell‐Herrero

et al. 2017

International Journal of Production Research

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“…There is a substantial quantity of literature introducing (e.g. Pezzotta et al 2016;Lim et al 2012) and discussing G. V. A. Vasantha et al 2012) design methods for PSS.…”

Section: Pss Design Methods -A Guiding Light For the Integration Of Pmentioning

confidence: 99%

Designing and providing integrated product-service systems – challenges, opportunities and solutions resulting from prescriptive approaches in two industrial companies

Matschewsky

Kambanou

Sakao

2017

International Journal of Production Research

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Due to customer pressure and growing competition, industrial companies are increasingly moving towards providing integrated offerings of products and services (PSS). Despite this trend, literature providing a deep understanding of the challenges associated with this transition is limited, while publications discussing approaches that focus on overcoming these challenges are particularly lacking. This article is based on a multi-case study of two Swedish industrial companies undergoing the transition to designing and providing PSS. It reports on the challenges identified at the case companies as well as opportunities arising from and solutions to these challenges. Subsequently to initial research on the challenges, prescriptive approaches such as a lifecycle costing method and a PSS design method were applied in the case companies over an extended timeframe. On the one hand, these prescriptive approaches provided both a deeper understanding of the challenges, which include a persistent product centred mindset, a lack of adjustment to changed incentive structures and the separation of productand service design. On the other hand, they also led to effective solutions such as focusing on customer value and introducing a PSS transition facilitator for the design team. These solutions were adapted to the situations in the respective companies and they partly went beyond the prescriptive measures first introduced. Therefore, the article shows the applicability of prescriptive approaches and methods to detect, understand and alleviate the challenges of PSS design and provision. Further, the article provides broadly applicable learnings for industrial companies undergoing this process.

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“…To do this, the PSSLDM has been used as a starting point, resulting in being strategically relevant to define, through brainstorming and workgroups with scientists and managers, the related engineering environment architecture and the tools' features. Indeed, requirements collected in business cases were analysed and detailed and then data model, functional specification, external interfaces, and technical specification were derived (Pezzotta, Sala, Pirola, Campos, Margarito, Correia, and Mourtzis, 2016;Pezzotta, Pirola, Rondini, Pinto and Ouertani, 2016) with the aim of finding the features that could better allow the creation of compelling but intuitive tools for the conceptualization, definition and monitoring of new PSSs. Concerning the sample, the three cases are very heterogeneous, this leads to a methodology able to satisfy different kind of needs.…”

Section: Methodsmentioning

confidence: 99%

The Product Service System Lean Design Methodology (PSSLDM)

Pezzotta

Sassanelli

Pirola

et al. 2018

JMTM

Self Cite

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Purpose Nowadays manufacturers companies are increasingly compelled to navigate towards servitization. Different methods and approaches were proposed in literature to support them to switch from traditional product-based business model to product service systems (PSSs). However, new knowledge, capabilities and skills were needed to consistently develop PSSs, since they need a joint focus on both customer’s perspective and company’s internal performance and at the same time a proper support for the integration of product and service design. The purpose of this paper is to propose the Product Service System Lean Design Methodology (PSSLDM), a structured methodology to develop PSSs along their entire lifecycle. Design/methodology/approach Retrieving concepts from interpretative, interactive and system development research traditions, and strongly reminding the design research methodology framework, the adopted research methodology is composed of three main phases (observation and conceptualization, theory building and tool development, validation) and involved three heterogeneous companies. Findings This paper provides an overview of the PSSLDM, explaining how the different methods supporting its conduction should contribute to properly design an integrated PSS. Moreover, companies highlighted several benefits in the different stages along the PSS lifecycle deriving by the adoption of the PSSLDM. Research limitations/implications The development of a platform based on the PSSLDM methodology raises a discussion on the possible changes needed by current Product Lifecycle Management (PLM) models and systems when they have to do with PSSs. Originality/value The PSSLDM enriches the already proposed SErvice Engineering Methodology, introducing new several components linked by lean rules in each of its phases (starting from customer analysis, going through solution concept and detailed design, until the offering analysis) and better supprting the deatil design of both prodcut and service components.

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Towards a methodology to engineer industrial product-service system – Evidence from power and automation industry

Cited by 59 publications

References 61 publications

Network positioning and risk perception in servitization: evidence from the UK road transport industry

Network positioning and risk perception in servitization: evidence from the UK road transport industry

Designing and providing integrated product-service systems – challenges, opportunities and solutions resulting from prescriptive approaches in two industrial companies

The Product Service System Lean Design Methodology (PSSLDM)

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