Towards an operations strategy for product‐centric servitization

Abstract

Purpose: This paper presents a framework that will help manufacturing firms to configure their internal production and support operations to enable effective and efficient delivery of products and their closely associated services.Design/methodology/approach: First we establish the key definitions and literature sources directly associated with servitization of manufacturing. We then develop a theoretical framework that categorises the key characteristics of a manufacturer's operations strategy, this is populated using both evidence from the extant literature and empirical data.Findings: The framework captures a set of operations principles, structures and processes which can guide a manufacturer in the delivery of product-centric servitized offering. These are illustrated and contrasted against operations that deliver purely product (production operations) and those which deliver purely services (services operations).Limitations/implications: The work is based on a review of the literature supported by data collected from an exploratory case study. Whilst it provides an essential platform, further research will be needed to validate our framework.Originality: The principal contribution of this paper is a framework which captures the key characteristics of operations for product-centric servitized manufacture.

Servitising manufacturers: the impact of service complexity and contractual and relational capabilities

“…Business models for PSS usually grow around the physical asset where the PSS provider offers the asset's use or additional support (Tukker, 2004;Baines et al, 2009). Currently, most PSSs in industry focus on the latter option, i.e.…”

Review of sustainable service-based business models in the Chinese truck sector

“…Some examples of automotive result-oriented PSS exist and we could classify eight papers in this category (Catulli, 2012;Williams, 2007;Firnkorn & Müller, 2012;Baines et al, 2009Baines et al, , 2011. However, cases presented in these papers do not fulfil all criteria of a result-oriented PSS as defined by Tukker (2004).…”

“…In the commercial vehicles sector, some manufacturers offer advanced services which are similar to result-oriented services Baines et al, 2009Baines et al, , 2011. For example, In addition, it can be seen in Table 5 that scholars conduct studies mainly in the context of developed countries.…”

“…In the latter case, the authors provide the distribution of car-sharing members in term of social and demographics factors and indicate the current and future usage profiles based on a survey conducted with 2060 German customers. Baines et al, 2009Baines et al, ,2011 (1) PO= product-oriented, UO= use-oriented, RO=result-oriented …”

Fluid transitions to more sustainable product service systems

“…Further, the challenge of developing requisite capabilities to develop and implement PSS has also been of interest (cf. Baines et al 2009).…”