Applying Value-based design to lead technology innovation towards PSS development

Author(s):  
Chih-Shiang (Mike) WU ◽  
Tung-Jung (David) SUNG

Product-Service System (PSS) design has become an emergent paradigm in technology innovation. However, little research addresses the two major issues in PSS development: 1) how to identify the value propositions, and 2) how to construct value constellations. Design-Driven Innovation (DDI) is an approach to lead to new meaning for technology. Based on DDI, this study constructs a concept of value-based design for technology innovation towards PSS development and conducts a case study of the FamiCare innovation project to explore the insights. Firstly, to identify the value propositions for PSS, it is critical to uncover the core functions of the technology, and interpret new meanings through collecting critiques from stakeholders. Secondly, co-creation workshops and visualized tools are able to facilitate the construction of PSS value constellations. Thirdly, both emotional and functional value should be considered during the PSS development. Finally, this study highlights the main challenges and outlines a methodological framework.

2017 ◽  
Vol 10 (2) ◽  
pp. 323 ◽  
Author(s):  
Anjar Priyono

Purpose: This study aims to analyse the benefit provided by interested parties in remanufacturing including manufacturing companies, original equipment manufacturers and customers. Existing studies examining Produc-Service System (PSS) focus on relationship between two parties, either between OEMs and customers or between remanufacturers with customers. This study attempts to fill the gap by investigating how the PSS offers benefit to OEMs, remanufacturers and customers.Methodology: This research used case study method to examine the practice of PSS in remanufacturing companies. Qualitative approach was employed to analyse emerging problems in the case companies and the researcher collaborate with the involved parties to create new knowledge. Thus, this process can offer theoretical insights as well as practical insights.Findings: All parties involved in PSS consistently gain benefit from adopting the practice. From the perspective of remanufacturers, the major benefit of remanufacturers adopting PSS is that it can help reduce the uncertainties regarding time, quantity and quality of returned cores. Due to reduced uncertainties, remanufacturers gain benefit from higher profitability and more environmental friendly products. These benefits provide multiplier effects to both customers and OEMs.Practical implications: This study offers benefits to managers in the sense that it provides guidance for managers of remanufacturers to better manage remanufacturing operation so that it becomes more environmentally friendly and economically profitable.Originality/value: It is the first time that the benefits of PSS to support remanufacturing are viewed from integrative perspective – i.e. manufacturers, remanufacturers, and customers.


Author(s):  
TOR HELGE AAS ◽  
KARL JOACHIM BREUNIG ◽  
MAGNUS MIKAEL HELLSTRÖM ◽  
KATJA MARIA HYDLE

A stream of servitisation research has focused on the construction of taxonomies and typologies of product–service system business models (BMs). However, their relevance in the context of increased utilisation of digital technologies may be questioned. Thus, the purpose of this paper is to empirically revisit the existing product–service system BM taxonomies to explore the following research question: How can the BMs of servitised manufacturing firms be categorised in the digital era? The question is addressed through an embedded case study of five servitised firms. We found that the firms’ BMs varied with regard to the degree of the suppliers’ ownership of delivered products, degree of smartness of the services provided and degree of performance orientation of contracts. Based on these findings, we derived a new product–service system BM taxonomy with eight categories, presented in a 2 × 2 × 2 matrix, that significantly extends earlier taxonomies.


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