Industrial Transition through Product-Service Systems: Proposal of a Decision-Process Modeling Framework

Dahmani, Sarra; Boucher, Xavier; Peillon, Sophie

doi:10.1007/978-3-642-40543-3_4

Cited by 9 publications

(11 citation statements)

References 9 publications

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“…Interestingly, both academia and practice emphasize the importance of and difficulties associated with transitioning from a so-called product business to a service business (Fang et al, 2008;Gebauer et al, 2005;Harmon and Laird, 2012;Kessler & Stephan, 2010;Matthyssens & Vandenbempt, 2010;Raddats & Easingwood, 2010;Ulaga & Loveland, 2014), product-service system business (Baines et al, 2009;Dahmani et al, 2014;Martinez et al, 2010), hybrid offering business (Ulaga & Reinartz, 2011), or solution business (Evanschitzky et al, 2011;Ferreira et al, 2013;Paiola et al, 2013). Essentially, the service transition concept, as established in Oliva and Kallenberg's (2003) path-defining study, assumes that firms undertake a unidirectional repositioning along a product-service continuum: from basic, product-oriented services towards more customized, process-oriented ones, ultimately leading to the provision of solutions.…”

Section: Introductionmentioning

confidence: 99%

What service transition? Rethinking established assumptions about manufacturers' service-led growth strategies

Kowalkowski

Windahl

Kindström

et al. 2015

Industrial Marketing Management

263

276

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Research highlights• We challenge the established service transition assumption• We identify 3 service growth trajectories: becoming an availability provider; a performance provider; and an industrializer• Firms should generally downsize and standardize solutions, thus being able to offer them to a greater number of customers• Firms concurrently hold a number of system supplier roles rather than transferring from one role to another• We present a strong platform for further examination of theoretical and managerial implications of the study AbstractBoth academics and practitioners emphasize the importance for product firms of implementing service-led growth strategies. The service transition concept is well established, namely a unidirectional repositioning along a product-service continuum-from basic, product-oriented services towards more customized, process-oriented ones-ultimately leading to the provision of solutions. We challenge this service transition assumption and develop alternative ones regarding how product firms should pursue service-led growth.Using 'problematization methodology', and drawing on findings from thirteen system suppliers, we identify three service-led growth trajectories: (1) becoming an availability provider, which is the focus of most transition literature; (2) becoming a performance provider, which resembles project-based sales and implies an even greater differentiation of what customers are offered; and, (3) becoming an 'industrializer', which is about standardizing previously customized solutions to promote repeatability and scalability. Based on our critical inquiry, we develop two alternative assumptions: (a) firms need to constantly balance business expansion and standardization activities; and (b) manage the co-existence of different system supplier roles. Finally, we consider the implications for implementing service-led growth strategies of the alternative assumptions.

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Section: Introductionmentioning

confidence: 99%

What service transition? Rethinking established assumptions about manufacturers' service-led growth strategies

Kowalkowski

Windahl

Kindström

et al. 2015

Industrial Marketing Management

263

276

View full text Add to dashboard Cite

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“…Such a solution space should be supported by a suitable organisation structure where roles are assigned to organisational units throughout the so called Industrial PSS Network. Dahmani et al [7] proposed a framework for diagnosing the servitization potential of industrial companies from a decision point of view. Chalal et al [8] addressed the transition to PSS at the operational level by analysing the impact of capacity management policies on the PSS performance, using simulation.…”

Section: Pss Transition Supporting Methodologiesmentioning

confidence: 99%

Transition to Product Service Systems: A Methodology Based on Scenarios Identification, Modelling and Evaluation

Medini

Moreau

Peillon

et al. 2014

Progress in Pattern Recognition, Image Analysis, Computer Vision, and Applications

Self Cite

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The paper proposes a methodology to support the organisational shift towards product Services Systems. Its backbone is the evaluation of economic impact of such a shift. However, in order to efficiently accommodate organisational changes and include company specificities, other steps are required prior to evaluation. These are context analysis, scenarios identification and modelling. The novelty of the paper lies in (i) including organisational changes in the evaluation and (ii) managing the contextualization to company specificities.

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“…Stakeholder's identification and the value integrated in the PSS shower head analyzed in this paper is mainly based on face to face interviews with the project manager of this solution who is also the director of ECOBEL, and other internal and external documents. The main barrier to the commercialization of the proposed PSS lies in the difficulty of its value perception and to convince potential customers of it [24].…”

Section: Case Studymentioning

confidence: 99%

The Sustainable Value Proposition of PSSs: The Case of ECOBEL “Shower Head”

Neubert

Lambey-Checchin

2016

Procedia CIRP

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Product/Service Systems are conceived to be competitive, satisfy customer needs and have a lower environmental impact than traditional business models. Based on a single case study, this paper analyses the specific sustainable value proposition that a company has designed to replace a low-cost product by an innovative Product Service Solution. The objective of the company is to replace the "shower head" in every hospital room. The concept that was developed does not consist in replacing product "A" by an equivalent product "B", but in changing radically the offer. The Product Service Solution includes a lifecycle analyses, by integrating environmental social and economic impacts into the different main phases, i.e. beginning of life (BOL), Middle-oflife (MOL) and End-of-life (EOL). Even though the product that was designed to support the service looks very simple, the design of this innovative solution highlights the role of the functional analyses to be more environmental friendly, to improve social issues and finally proposes a new business model based on servicisation. The "shower head" as a service developed by ECOBEL is far beyond the low-cost product used today in the French hospital, by integrating a new sustainable value proposition.

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Industrial Transition through Product-Service Systems: Proposal of a Decision-Process Modeling Framework

Cited by 9 publications

References 9 publications

What service transition? Rethinking established assumptions about manufacturers' service-led growth strategies

What service transition? Rethinking established assumptions about manufacturers' service-led growth strategies

Transition to Product Service Systems: A Methodology Based on Scenarios Identification, Modelling and Evaluation

The Sustainable Value Proposition of PSSs: The Case of ECOBEL “Shower Head”

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