The Influence of Product Design Practices on New Service Development: Analysis of Selected Manufacturing Firms

Abstract

This article investigates the influence of product design practices on new service development processes of manufacturers that are moving toward service provision using a multiple case study conducted with four companies. Technological developments, a competitive business environment, and diverse customer demands have forced manufacturing firms to pursue growth strategies through new service development. On the other hand, studies on design, particularly the interplay between product design and new service development processes, in this shift are scant. This is significant because a manufacturer's transition from only selling products toward delivering services requires the simultaneous management of practices that reflect their histories of product design and processes that comprise service design and development. As a result of the analysis, three themes emerged regarding the influence of product design practices on new service development within the context of manufacturing: (1) accumulation of product design expertise, (2) increased customer loyalty through high‐quality products, and (3) design problems as tools for fostering innovation culture. Each theme is thoroughly discussed with examples from the case study companies. Consequently, this article highlights the interplay between product and service design processes and provides insights on how established product design practices would assist a manufacturer in service provision.

The impact of Industry 4.0 technologies and the soft side of TQM on organisational performance: a multiple case study analysis on manufacturing organisations

“…During I40 adoption, top management involves workers in selecting I40 technologies and designs a mix of activities to involve workers in I40 supervision or operation and in the related TQM practices. Thus, top management efforts are not limited to allocating economic resources for I40 technology purchasing (Sayar and Er, 2018;Sony et al, 2022), but it acts as change agents. Top management employs communication activities and meetings to reduce workforce resistance to change, involve workers in quality practices and develop a quality culture and mindset for the success of quality systems.…”

“…During I40 adoption, top management involves workers in selecting I40 technologies and designs a mix of activities to involve workers in I40 supervision or operation and in the related TQM practices. Thus, top management efforts are not limited to allocating economic resources for I40 technology purchasing (Sayar and Er, 2018; Sony et al. , 2022), but it acts as change agents.…”

“…To be involved in I40 assembly lines, workers need extensive reskilling (Li, 2022;Margherita and Bua, 2021;Vereycken et al, 2021). The literature reports that organisations are incentivised to allocate financial resources to I40 technologies to support automation (Sayar and Er, 2018;Sony et al, 2022) but may be reluctant to invest in the reskilling of workers. Manufacturing workers have operational competencies to assemble products but miss the digital skills needed to operate with I40 technologies (Bonekamp and Sure, 2015;Frey and Osborne, 2017), and organisations consider reskilling risky in the absence of clear recommendations on how workers can be engaged in automated assembly lines .…”

“…, 2021). The literature reports that organisations are incentivised to allocate financial resources to I40 technologies to support automation (Sayar and Er, 2018; Sony et al. , 2022) but may be reluctant to invest in the reskilling of workers.…”

Procurement practices and operational performance: a study of linear and curvilinear relationships in a developing economy

“…The selected firms used in the study met the following criteria: Firms that have been in operation for at least five years (Morgan et al , 2004). This criterion ensures that selected firms have a certain level of stability and experience in their operations (Aobdia and Petacchi, 2019; Sayar and Er, 2017). Secondly, firms that represent diverse industries within the manufacturing sector.…”