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Effective and efficient design and provision of product-service systems: challenges, opportunities, and solutions
Linköping University, Department of Management and Engineering, Environmental Technology and Management. Linköping University, Faculty of Science & Engineering.ORCID iD: 0000-0003-4259-1681
2019 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

The world manufacturing companies operate in is changing. In the past, these companies relied on the design and sale of products. Today, this linear model of business is becoming increasingly insufficient. As customers are more and more focused on their core business, buying and operating machinery and other goods becomes unattractive to them. In response to this, manufacturing companies are expanding their value capture into additional stages of the product lifecycle by providing integrated offerings of products and services — Product-Service Systems (PSSs).

Designing and providing PSSs is fundamentally different from traditional product sales. Expanding to become a PSS provider is, therefore, challenging for companies with a history of designing and selling products. Departing from this, it is the aim of this thesis to support manufacturing companies in their expansion to effective and efficient design and provision of PSSs. The research reported has both descriptive and prescriptive properties, reflecting the goals of understanding the status quo in manufacturing companies’ practice and providing support based on this.

To establish a point of departure, the current design and provision of two manufacturing companies expanding their business towards PSSs was investigated. From this, an in-depth understanding of the status quo and a number of challenges emerged.

Based on this, the research had the goal to contribute to identifying and developing solutions to these challenges, with an initial focus on methods supporting PSS design and provision. However, although methods fitting to the challenges identified exist, they appear to receive limited uptake in manufacturing companies’ practice. In order to improve their practical utility, a structured method is proposed to assist users in both academia and practice in developing methods in a requirements-oriented fashion. The utility of methods in improving the efficiency and effectiveness of PSS design and provision is thereby to be enhanced.

A particular challenge for manufacturing companies expanding to become PSS providers is the change in how value is captured: Resulting from the extensive involvement throughout the lifecycle, a need for a broader, multidimensional understanding of value capture was identified. However, the manufacturing companies investigated have been found to experience challenges in grasping this change, with a focus on a product sales-centric understanding of value capture remaining prevalent. To support companies towards reaping the benefits of the expansion to PSS design and provision, methods to explore how value is currently created and captured in the use phase and how to enhance the future value capture based on that information in the design phase have been developed and applied. As a result, broadly relevant value dimensions were attained, aiming to facilitate a lifecycle-focused, effective, and efficient design and provision of PSSs.

Eventually, to broaden the understanding of effective and efficient design and provision of PSSs in practice today, the potential contributions of real-world PSSs to a circular economy were investigated based on an existing framework. The result was ambiguous, indicating both advancements compared to traditional sales and substantial room for improvement, particularly with a focus on the absolute decoupling of economic activity and resource use.

Based on the synthesis of the research results, manufacturing companies are supported in their expansion to effective and efficient design and provision of PSSs — and towards a promising future.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2019. , p. 120
Series
Linköping Studies in Science and Technology. Dissertations, ISSN 0345-7524 ; 1978
Keywords [en]
Product-Service Systems, Servitization, Value, Design, Circular Economy
National Category
Environmental Management
Identifiers
URN: urn:nbn:se:liu:diva-156261DOI: 10.3384/diss.diva-156261ISBN: 9789176850916 (print)OAI: oai:DiVA.org:liu-156261DiVA, id: diva2:1303609
Public defence
2019-05-08, ACAS, A Building, Campus Valla, Linköping, 09:15 (English)
Opponent
Supervisors
Available from: 2019-04-10 Created: 2019-04-10 Last updated: 2019-04-10Bibliographically approved
List of papers
1. PSS without PSS design: possible causes, effects and solutions
Open this publication in new window or tab >>PSS without PSS design: possible causes, effects and solutions
2016 (English)In: Sustainability Through Innovation in Product Life Cycle Design: Part III / [ed] Mitsutaka Matsumoto, Keijiro Masui, Shinichi Fukushige and Shinsuke Kondoh, Singapore: Springer, 2016, 1, p. 233-248Chapter in book (Refereed)
Abstract [en]

Product-Service Systems (PSS) are seen as a cornerstone of a future circular economy. However, in order to achieve the desired environmental benefits, the industrial implementation of PSS design is key. This chapter discusses the apparent lack of an adaptation of design processes to PSS or adoption of PSS design methods within companies, which are nevertheless successfully offering PSS. Based on experiences at two companies and under close regard of the relevant literature, possible causes of this lack of method adaptation/adoption are discussed, and the effects this may have are deliberated. Lastly, potential solutions to this issue and ways forward are introduced and reflected upon focusing on the companies.

Place, publisher, year, edition, pages
Singapore: Springer, 2016 Edition: 1
Series
EcoProduction, ISSN 2193-4614 ; 2016
Keywords
Method Adoption; Process Adaptation; EcoDesign; Integrated Product Service Offerings;
National Category
Environmental Management Engineering and Technology
Identifiers
urn:nbn:se:liu:diva-130909 (URN)10.1007/978-981-10-0471-1_16 (DOI)9789811004698 (ISBN)9789811004711 (ISBN)
Available from: 2016-08-30 Created: 2016-08-30 Last updated: 2019-04-10Bibliographically approved
2. Designing and providing integrated product-service systems: challenges, opportunities and solutions resulting from prescriptive approaches in two industrial companies
Open this publication in new window or tab >>Designing and providing integrated product-service systems: challenges, opportunities and solutions resulting from prescriptive approaches in two industrial companies
2018 (English)In: International Journal of Production Research, ISSN 0020-7543, E-ISSN 1366-588X, Vol. 56, no 6, p. 2150-2168Article in journal (Refereed) Published
Abstract [en]

Due to customer pressure and growing competition, industrial companies are increasingly moving towards providing integrated offerings of products and services (PSS). Despite this trend, literature providing a deep understanding of the challenges associated with this transition is limited, while publications discussing approaches that focus on overcoming these challenges are particularly lacking. This article is based on a multi-case study of two Swedish industrial companies undergoing the transition to designing and providing PSS. It reports on the challenges identified at the case companies as well as opportunities arising from and solutions to these challenges. Subsequent to initial research on the challenges, prescriptive approaches such as a life cycle costing method and a PSS design method were applied in the case companies over an extended time frame. On the one hand, these prescriptive approaches provided both a deeper understanding of the challenges, which include a persistent product centred mindset, a lack of adjustment to changed incentive structures and the separation of product and service design. On the other hand, they also led to effective solutions such as focusing on customer value and introducing a PSS transition facilitator for the design team. These solutions were adapted to the situations in the respective companies and they partly went beyond the prescriptive measures first introduced. Therefore, the article shows the applicability of prescriptive approaches and methods to detect, understand and alleviate the challenges of PSS design and provision. Further, the article provides broadly applicable learning for industrial companies undergoing this process.

Place, publisher, year, edition, pages
Taylor & Francis, 2018
Keywords
PSS, servitisation, design method, implementation, product–service integration
National Category
Other Mechanical Engineering
Identifiers
urn:nbn:se:liu:diva-137904 (URN)10.1080/00207543.2017.1332792 (DOI)000433967100005 ()2-s2.0-85020232003 (Scopus ID)
Funder
Mistra - The Swedish Foundation for Strategic Environmental Research, 2014/16Vinnova, Strategic Innovation
Note

Funding agencies: Mistra REES (Resource Efficient and Effective Solutions) programme - Mistra (The Swedish Foundation for Strategic Environmental Research) [2014/16]; programme for Strategic Innovation - Vinnova (Swedish Governmental Agency for Innovation Systems)

Available from: 2017-06-16 Created: 2017-06-16 Last updated: 2019-04-10Bibliographically approved
3. Capturing and enhancing provider value in product-service systems throughout the lifecycle: A systematic approach
Open this publication in new window or tab >>Capturing and enhancing provider value in product-service systems throughout the lifecycle: A systematic approach
2018 (English)In: CIRP - Journal of Manufacturing Science and Technology, ISSN 1755-5817, E-ISSN 1878-0016Article in journal (Refereed) Published
Abstract [en]

Although the transition from product seller to product-service system (PSS) provider implies fundamental changes in both value creation for customers and value capture by the provider, prior research has largely focused on the investigation and enhancement of customer value through PSSs. In contrast, a discussion of the changes in how providers attain value and support to enhance this in industrial practice is lacking at this time. This article presents a systematic, empirically-based approach to analyze and enhance PSS providers’ value capture throughout the lifecycle. This is achieved by two methods provider value analysis (PVA) facilitates a structured assessment of the value capture during the provision of PSSs in the use phase of the lifecycle, while provider value evaluation (ProVa) operationalizes the results of this analysis in the design phase to facilitate an improved value capture in the coming iteration. As the approach was developed in close collaboration with a large-scale PSS provider, the article further reports the results of its application in a case study spanning two years. As a result of using PVA, value dimensions of broad relevance for PSS providers are presented, supported by findings of applying the method at an additional PSS provider. Through the approach presented and case study results attained, the article points out how the design and management of a PSS, focusing on the provider’s value and available benefits throughout the lifecycle, can be enhanced in industry, while extending the academic body of knowledge on the value capture of PSS providers and its implications for PSS design and provision.

Place, publisher, year, edition, pages
Elsevier, 2018
Keywords
Servitization; PSS design; PSS evaluation; PSS value; Provider value; PSS implementation; PSS management
National Category
Environmental Management
Identifiers
urn:nbn:se:liu:diva-152879 (URN)10.1016/j.cirpj.2018.08.006 (DOI)2-s2.0-85053313953 (Scopus ID)
Funder
Mistra - The Swedish Foundation for Strategic Environmental Research, REES
Available from: 2018-11-26 Created: 2018-11-26 Last updated: 2019-04-10Bibliographically approved

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Matschewsky, Johannes

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