Prioritizing customer requirements in a product-service system (PSS) context

2019 ◽  
Vol 31 (2) ◽  
pp. 257-273 ◽  
Author(s):  
Nicolas Haber ◽  
Mario Fargnoli

PurposeProduct-service systems (PSSs)’s popularity has expanded significantly throughout recent years. The purpose of this paper is to integrate products and services to achieve functional results that augment the offering’s value. Nevertheless, the intangibility of services hinders the diffusion of PSSs: services are characterized by imprecisions and ambiguities that render the assessment and prioritization of customer requirements problematic. An inadequate evaluation of the latter leads to an inconsistent PSS design that results in the customer dissatisfaction.Design/methodology/approachTo address these concerns, the paper proposes an approach integrating the quality function deployment for product-service systems (QFDforPSS) method with Thurstone’s Law of Comparative Judgments. This approach was tested at a manufacturer in the medical sector seeking to improve his market stance through a PSS model.FindingsAlthough the case study is based on a limited sample, the results achieved highlight the importance of the flow of information between the PSS provider and the customers (i.e. the PSS receivers) in the healthcare sector. The proposed approach can facilitate the company in collecting information even in the case of incomplete answers to surveys and questionnaires providing a practical method to handle the uncertainty due to incomplete data.Originality/valueThe study represents one of the first applications of the PSS approach in the healthcare sector, introducing a novel integration of easy-to-use management tools to augment the understanding of customer needs and expectations.

Author(s):  
Cassio D. Goncalves ◽  
Michael Kokkolaras

Competitive markets and complex business-to-business environments compel manufacturers to provide innovative service offerings along with their products. This necessitates effective methodologires for developing and implementing sucessful new business strategies. This article presents an approach to model tactical and operational decisions to support the design and development of Product-Service Systems (PSSs). A combination of Quality Function Deployment and Design-to-Cost techniques is proposed as the first step of a PSS design framework that aids design engineers to determine the relations among value to customer, functional requirements, design variables and cost. The objective is to identify PSS design alternatives that deliver value to customer while respecting cost targets. An aerospace software case study is conducted to demonstrate the proposed approach.


2020 ◽  
Vol 32 (4) ◽  
pp. 897-913 ◽  
Author(s):  
Ai Qiang Li ◽  
Nicholas Rich ◽  
Pauline Found ◽  
Maneesh Kumar ◽  
Steve Brown

PurposeIn the age of Industry 4.0, digital advancement is reshaping manufacturing models towards product–service systems (PSS). The drivers, readiness and challenges to move to a PSS model are not well understood, and the exploitation of the digital era presents the gap of this research.Design/methodology/approachThe research was conducted using semi-structured interviews in six manufacturers. Two forum debates were also conducted to supplement and validate the findings.FindingsSocial and economic motivations rather than environmental considerations were driving the change to PSS. Digital technologies could be an important driver if manufacturers reached a certain PSS maturity level. A high level of technical readiness was offset by a low level of social investments and the strategic development of human resources. Value co-creation was a main challenge though manufacturers had the advantage of digital connectivity, which indicated new human requirements; the greater the enabling power of digital technologies, the greater the need for advanced human skills.Practical implicationsHuman resource management has underpinned lean models; yet, the role of employees within PSS is underdeveloped despite the impact of staff in exploiting digitalisation and value co-creation. A “learning organisation” and socio-technical fit are required for the “diffusion of innovation” of PSS.Originality/valueThis research attempted to explore drivers, readiness and challenges for PSS from a socio-technical systems (STS) perspective. Three levels of PSS maturity with STS features were derived from the research, providing guidance for manufacturers.


2021 ◽  
Vol 32 (9) ◽  
pp. 208-238
Author(s):  
Federico Barravecchia ◽  
Fiorenzo Franceschini ◽  
Luca Mastrogiacomo ◽  
Mohamed Zaki

PurposeThe paper attempts to address the following research questions (RQs): RQ1: What are the main research topics within PSS research? RQ2: What are future trends for PSS research?Design/methodology/approachTwenty years of research (1999–2018) on product-service systems (PSS) produced a significant amount of scientific literature on the topic. As the PSS field is relatively new and fragmented across different disciplines, a review of the prior and relevant literature is important in order to provide the necessary framework for understanding current developments and future perspectives. This paper aims to review and organize research contributions regarding PSS. A machine-learning algorithm, namely Latent Dirichlet Allocation, has been applied to the whole literature corpus on PSS in order to understand its structure.FindingsThe adopted approach resulted in the definition of eight distinct and representative topics able to deal adequately with the multidisciplinarity of the PSS. Furthermore, a systematic review of the literature is proposed to summarize the state-of-the-art and limitations in the identified PSS research topics. Based on this critical analysis, major gaps and future research challenges are presented and discussed.Originality/valueOn the basis of the results of the topic landscape, the paper presents some potential research opportunities on PSSs. In particular, challenges, transversal to the eight research topics and related to recent technology trends and digital transformation, have been discussed.


2015 ◽  
Vol 115 (8) ◽  
pp. 1529-1546 ◽  
Author(s):  
Jin Shen ◽  
Bin Wu ◽  
Li Yu

Purpose – Configuration systems are used as a means for efficient design of customer tailored product service systems (PSS). In PSS configuration, mapping customer needs with optimal configuration of PSS components have become much more challenging, because more knowledge with personalization aspects has to be considered. However, the extant techniques are hard to be applied to acquire personalized configuration rules. The purpose of this paper is to extract the configuration rule knowledge in symbolism formulation from historical data. Design/methodology/approach – Customer characteristics (CCs) are defined and introduced into the construction of configuration rules. Personalized PSS configuration rules (PCRs) are thereby proposed to collect and represent more knowledge. An approach combining Local Cluster Neural Network and Rulex algorithm is proposed to extract rule knowledge from historical data. Findings – The personalized configuration rules with CCs are able to alleviate the burden of customers in expressing functional requirements. Furthermore, in the long-term relationship with a customer in PSS realization, PSS offerings can be reconfigured according to the changing CCs with the guide of PCRs. Originality/value – The contribution of this paper lies in introducing the attribute of CCs into the antecedents of PCRs and proposing the neural networks-based approach to extracting the rule knowledge from historical data.


foresight ◽  
2019 ◽  
Vol 21 (3) ◽  
pp. 332-361 ◽  
Author(s):  
Sarah Lai-Yin Cheah ◽  
Yinping Yang ◽  
Ozcan Saritas

PurposeThis paper aims to discuss a foresight study conducted in Singapore’s national R&D agency to help science and technology decision makers identify key capability areas of R&D investment to support the manufacturing industry’s growth in the country and the region.Design/methodology/approachUsing horizon scanning, scenario analysis and expert opinion, nine capabilities are identified as core areas to be developed to support the country’s future growth of product-service systems.FindingsThe results of a Delphi survey involving 30 industry and academic thought leaders recommend priorities of these capabilities. This paper concludes with a discussion of the study implications for theory, research and practice in the domain of servitisation and product-service systems.Research limitations/implicationsThe foresight study presented here on the future of servitisation in Singapore demonstrates one of the first fully fledged applications of foresight in constructing a coherent vision of future product-service system markets. In this study, the authors applied systemic foresight methodology (SFM) comprising the first six phases: initiation (scoping), intelligence (scanning), imagination (scenarios), integration (priorities), interpretation (strategies) and implementation (action).For future research, an ideal step would be to proceed with the final phase of the SFM, impact, to develop indicators for servitisation and to monitor and evaluate the transition process.Practical implicationsManufacturing and services are no longer distinct concepts with a clear divide. Manufacturing firms not only become more service dependent but also produce and provide services for their consumers. This transformation towards servitisation implies fundamental re-organisation of the production and management practices. Furthermore, through new business models, new and loyal customers will be gained, which will in turn bring additional income, while making the companies less prone to economic and business fluctuations.Social implicationsThe results of this study have practical implications for policymakers of public and private sectors that are interested in playing a key role in future product-service system innovation. These have implications for developing the human and intellectual capital that are required for supporting the future innovation. Institutes of higher learning and vocational institutes should also consider incorporating new curricula and modules to build the capabilities for knowledge creation and transfer.Originality/valueThe findings of the present study on strategic growth areas and relevant critical capabilities provide new directions for research in the field of servitisation. Among the nine capabilities identified, the top three were advanced customer intelligence capability, socio-physical service quality, traceability and maintainability and integrated strategic decision-making. From the results, it is apparent that advanced customer intelligence capability is both an area of importance to Singapore and the world.


2021 ◽  
Vol 13 (12) ◽  
pp. 6624
Author(s):  
Nicolas Haber ◽  
Mario Fargnoli

The paper proposes a Product-Service System (PSS) methodology for customizing solutions to different patterns of use while achieving a better environmental performance than a stand-alone product. The approach is based on combining the Quality Function Deployment for Product-Service Systems (QFDforPSS) and the Screening Life Cycle Modeling (SLCM) tools. QFDforPSS is augmented by the Fuzzy Analytical Hierarchy Process (FAHP) to reduce service-related ambiguities and uncertainties on the one hand and better define the product and service characteristics of the solution on the other. The SLCM evaluates the possible outcomes by determining the environmental impact and comparing it with the manufacturer’s current solution. A case study at a manufacturer of medical diagnostic equipment illustrates the use of the approach depicting the possible benefits that can arise: the PSS solution can be customized to fit customers who intensively use the product and consumers with a more moderate use. This offers flexibility and an optimized life cycle through easier maintenance, upgrades, and end-of-life schemes. Concretely, it shows how the PSS approach can enhance the development of sustainable solutions that can be adapted to varying and future customer needs, such as adjusting current solutions to new requirements, i.e., adapting existing products to COVID-19 detection and different levels of use.


2020 ◽  
Vol 40 (4) ◽  
pp. 459-479
Author(s):  
Simon Hazée ◽  
Yves Van Vaerenbergh ◽  
Cécile Delcourt ◽  
Sertan Kabadayi

PurposeOrganizations increasingly develop and offer sharing services enabled by means of product-service systems (PSS). However, organizations offering sharing-based PSS face a unique set of design challenges and operational risks. The purpose of this paper is to provide researchers and practitioners with customer-based insights into service delivery system design and risk management for sharing-based PSS operational success.Design/methodology/approachThis qualitative study combines in-depth interviews with supplementary, multidisciplinary literature and secondary firm data. In total, the authors conducted 56 semi-structured interviews with diverse customers across different business-to-customer (B2C) PSS settings.FindingsFirst, the authors develop an integrative conceptual framework that reveals what structural and infrastructural design choices customer expect organizations to make for mitigating risks and enhancing customer-perceived value in the sharing economy. These design choices may influence customers' trust and control perceptions in all actors involved in the service delivery system. Second, the results suggest that sharing value proposition, customer-perceived level of consequentiality and level of customer-supplied resources are contingency factors that need to be considered when making design decisions for risk management in the sharing economy.Originality/valueThis study extends Sampson's Unified Service Theory by proposing that, with sharing-based PSS, production flows from customers to customers. This situation creates unique challenges for operations management. This paper extends current understanding of the role, characteristics and contingencies of service delivery system design for risk management in the sharing economy. In doing so, authors challenge common wisdom and suggest understanding both the organizational and customers' individual contexts is critical for (contingency) theory and practice.


2018 ◽  
Vol 22 (4) ◽  
pp. 571-587 ◽  
Author(s):  
Chunmin Lang ◽  
Cosette M. Joyner Armstrong

Purpose The purpose of this paper is to identify whether fashion leadership is an obstacle or catalyst to consumers’ purchasing intention in sustainable clothing product-service systems (CPSS), which include sale of redesigned clothing, clothing repair/alteration service, clothing renting, clothing swapping and style consultancy service. Design/methodology/approach The present study examined the causal relationship between fashion leadership and intentions to engage in CPSS. By applying the theory of planned behavior (TPB), this study also considered self-interest and social values in consumers’ intention to adopt CPSS. A series of multiple regression analyses and structural equation modeling were conducted on data collected from 431 females in the USA through an online survey. Findings A significantly positive influence of fashion leadership on consumers’ intention to engage in each CPSS retail model was found; and demographics, including age, income and education have moderating influences on these relationships. Furthermore, the results also confirmed positive relationships between fashion leadership with attitude and subjective norms as well as overall intention to adopt CPSS. Several implications related to the present study were discussed. Originality/value This study is the first of its kind in several aspects; first, affirming the argument that fashion need not contradict sustainability; second, extending TPB model by adopting fashion leadership as the external factor; third, providing new CPSS retail models advocating less material consumption by increasing product longevity and utilizing intangible services. Current studies mainly focus on the synthesis of general benefits of product-service systems (PSS) and how PSS are operated. Existing studies on CPSS primarily focus on consumer preferences and motivations in only a few exploratory qualitative studies. This is the first time that a quantitative study has been conducted to determine the interrelationship between the individual personal characteristic, fashion leadership and the intention to adopt PSS in the clothing industry.


Author(s):  
Ferran Vendrell-Herrero ◽  
Vasileios Myrthianos ◽  
Glenn Parry ◽  
Oscar F. Bustinza

Purpose The unobserved benefits of digital technologies are described as digital dark matter. Product service systems (PSSs) are bundles of products and services that deliver value in use, which is unobserved but generates benefits. This paper aims to empirically quantify digital dark matter within PSSs and correlates that measure with national competitiveness. Design/methodology/approach A novel methodology establishes the link between customer needs and a product and digital service portfolio offered across ten developed economies. The case context is the music industry where product and services are often substitutes – a cannibalistic PSS. Consumer information is obtained from a unique database of more than 18,000 consumer surveys. Consumer demand for digital formats is modelled and predicted through logistic regressions. Findings The work provides inverse estimations for digital dark matter within PSSs by calculating the gap between supply and demand for digital offers – described as the business model challenge. The USA has the lowest business model challenge; the home of major companies developing digital technologies. Digital dark matter is shown to be positively correlated with national competitiveness and manufacturing competitiveness indices. Practical implications The success of a cannibalistic PSS requires good understanding of market demand. Governments embarking on soft innovation policies might incentivise the development of service-orientated business models based on digital technologies. Originality/value Work expands theory on the concept of digital dark matter to the PSS literature. Empirically, a novel method is proposed to measure digital dark matter.


2016 ◽  
Vol 2016 ◽  
pp. 1-15 ◽  
Author(s):  
Tianyang Li ◽  
Ting He ◽  
Zhongjie Wang ◽  
Yufeng Zhang

Organizations have been approaching Product Service Systems (PSS) in unoptimized business model fashions. This is partially because there is ineffective evaluation of PSS business models. Therefore, a more sufficient evaluation method might advance the evaluation of PSS business models and assist organizations that are considering a servitisation strategy. In this paper, we develop a value oriented method by using the Quality Function Deployment (QFD) technique to employ correlations derived from the design information of PSS business models to evaluate these PSS business models. We describe the method applying steps and its practical application in a real life case study. This method improves the formulation of an evaluation step within a design process of PSS business models based on correlations of different dimensions of the PSS value and PSS business models; it allows a balance between the customer value and organization value that are delivered by PSS business models to be made quantitatively. Finally, it fosters the effective utilization of the design information accumulated in the earlier part of the design process to quantitatively evaluate whether a PSS business model is optimized for providing appropriate values for customers and organizations.


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