Design and Implementation of a Systematic Product-Service System Innovative Framework: A Case Study
DOI:
https://doi.org/10.24425/mper.2025.154926Abstract
The objective of the study is to create a product-service system (PSS) innovative framework that aligns with a case company’s strategy, competencies, and strengths. First, this study shows that the case company’s Design Thinking Macro process and PSS fundamentals might serve as the foundation of a suitable PSS innovative framework for the company’s upcoming service. Second, it serves as a descriptive stat-of-the-art study– the study investigates the case company’s innovation potential and potential for controlling hazards in the direction of servitization. The study aims to understand the current state of the case company and assist it in becoming a more flexible PSS supplier. The results show that the case company is committed to advance a cross-organizational development plan to strengthen its PSSs to capitalize in servitization. Because of its end-to-end capabilities, scientific innovation, and value-adding products that have a tangible component of value, the company’s product portfolio is well-positioned in terms of servitization.References
Adrodegari, F., & Saccani, N. (2017). Business models for the service transformation of industrial firms. The Service Industries Journal, 37 (1), 57–83. DOI: 10.1080/02642069.2017.1289514.
Annarelli, A., Battistella, C., & Nonino, F. (2016). Product service system: A conceptual framework from a systematic review. Journal of Cleaner Production, 139, 1011–1032.
Annarelli, A., Battistella, C., & Nonino, F. (2019). The Road to servitization: How product-service systems can disrupt companies’ business models. Springer. DOI: 10.1007/978-3-030-12251-5m
Araner (2021). District Heating Market Trends and Growth. Araner. https://www.araner.com/blog/district-heating-market-trends-and-growth
Baines, T., Lightfoot, H., Evans, S., Neely, A., Greenough, R., Peppard, J., Johnson, M. (2007). Stateof-the-art in product-service systems. Proc IMechE Part B: J. Eng. Manuf. Proceedings of the Institution of Mechanical Engineers, Part B: Journal of Engineering Manufacture, 221, 1543–1552. DOI: 10.1243/ 09544054JEM858
Bauren, F., Ferreira, M., & Miguel, P. (2013). Productservice systems: A literature review on integrated products and services. Journal of Cleaner Production, 47, 222–231. DOI: 10.1016/j.jclepro.2012.12.028
Björklund, T., Mikkonen, M., & Kukko-Liedes, V. (2019). Experimentation Throughout the Product Development Process – Lessons from Food and Beverage Ventures. Proceedings of the Design Society: International Conference on Engineering Design, 1 (1), 1145–1154. DOI: 10.1017/dsi.2019.120
Brax, S. (2005). A manufacturer becoming service provider – Challenges and a paradox. Managing Service Quality: An International Journal, 15 (2), 142– 155. DOI: 10.1108/09604520510585334
Brown, T. (2008). Design Thinking. Harvard Business Review. 86(6), 84.
Brown, T., & Wyatt, J. (2010). Design Thinking for social innovation. Development Outreach, 12 (1), 29–43. DOI: 10.1596/1020-797x_12_1_29
DeJonckheere, M., & Vaughn, L.M. (2019). Semistructured interviewing in primary care research: A balance of relationship and rigour. Family Medicine and Community Health, 7 (2), e000057. DOI: 10.1136/fmch2018-000057
Design Council. (2005). Eleven lessons: Managing design in eleven global brands: A study of the design process. Design Council. https://www.designcouncil.org.uk/sites/default/files/asset/document/ElevenLessons_Design_Council{%}20(2).pdf.
De Zan, G., A.F. De Toni, A. Fornasier, & C. Battistella (2015). A methodology for the assessment of experiential learning lean: The lean experience factory case study. European Journal of Training and Development, 39 (4), 332–354.
Ellram, L. (1993). Total cost of ownership: Elements and implementation. International Journal of Purchasing and Materials Management, 29 (3), 2–11. DOI: 10.1111/j.1745-493x.1993.tb00013.x
Fang, E.E., Palmatier, R.W., & Steenkamp, J.B.E. (2008). Effect of service transition strategies on firm value. Journal of Marketing, 72 (5), 1–14. DOI: 10.1509/jmkg.72.5.1
Forbes (2018). The world’s most innovative companies. https://www.forbes.com/innovative-companies/ list/#tab:rank
Fortune (2021). Fortune 500. https://fortune.com/fortune500/
Gebauer, H., Fleisch, E., & Friedli, T. (2005). Overcoming the service paradox in manufacturing companies. European Management Journal, 23 (1), 14–26. DOI: 10.1016/j.emj.2004.12.006
Goedkoop, M., van Halen, C., te Riele, H., & Rommens, P. (1999). Product service system, ecological and economic basis. Report for Dutch Ministries of Environment (VROM) and Economic Affairs (EZ), 36 (1), 1–122.
IDEO (2021). Design Thinking defined. https://designthinking.ideo.com/
Kennedy, J.M., & Rabbiraj, C. (2024). Goods-services continuum and servitization in the context of customer service management. International Journal of Electronic Finance, 13 (1), 121–137.
Kimbell, L. (2011). Rethinking Design Thinking: Part I. Design and Culture, 3 (3), 285–306. DOI: 10.2752/175470811x13071166525216
Kindström, D. (2010). Towards a service-based business model-key aspects for future competitive advantage. European Management Journal, 28 (6), 479–490. DOI: 10.1016/j.emj.2010.07.002
Kurtz, J., Meyer, P., & Roth, A. (2023). Decoding the context of servitization: Socio-technical pivots on the journey to service-oriented business models in manufacturing firms. Production Planning and Control, 1–18.
Lafuente, E., Vaillant, Y., & Vendrell-Herrero, F. (2023). Product-service innovation systems – Opening-up servitization-based innovation to manufacturing industry. Technovation, 120, 102665. Lay, G. (2014). Servitization in industry. Springer. DOI: 10.1007/978-3-319-06935-7
Lay, G., Schroeter, M., & Biege, S. (2009). Service-based business concepts: A typology for business-to-business markets. European Management Journal, 27 (6), 442– 455. DOI: 10.1016/j.emj.2009.04.002
Leigh, D. (2010). SWOT Analysis. Handbook of Improving Performance in the Workplace, 1–3, 115–140. DOI: 10.1002/9780470592663.ch24
Liu, J. (2016). Visualizing the 4 essentials of Design Thinking. GoodDesign. https://medium.com/gooddesign/visualizing-the-4-essentials-of-designthinking-17fe5c191c22
Manzini, E., & Vezzoli, C. (2003). A strategic design approach to develop sustainable product-service systems: Examples taken from the ‘environmentally friendly innovation’ Italian prize. Journal of Cleaner Production, 11 (8), 851–857.
Mattern, M. (2019). Types of prototypes. Learnsuits. http: //learnsuits.com/types-of-prototypes
Meier, H., Roy, R., & Seliger, G. (2010). Industrial Product-Service Systems – IPS 2. CIRP Annals, 59 (2), 607–627. DOI: 10.1016/j.cirp.2010.05.004
Mont, O.K. (2002). Clarifying the concept of productservice system. Journal of Cleaner Production, 10 (3), 237–245. DOI: 10.1016/S0959-6526(01)00039-7
Moro, S.R., Cauchick-Miguel, P.A., & de Sousa Mendes, G.H. (2022). A proposed framework for product-service system business model design. Journal of Cleaner Production, 376, 134365.
Mourtzis, D., Doukas, M., & Fotia, S. (2016). Classification and Mapping of PSS Evaluation Approaches. IFAC-PapersOnLine, 49 (12), 1555–1560. DOI: 10.1016/j.ifacol.2016.07.801
Naiman, L. (2021). Design Thinking As A Strategy For Innovation. Creativity at Work. https://www.creativityatwork.com/design-thinking-strategy-forinnovation/
Neely, A., Benedetinni, O., & Visnjic, I. (2011). The servitization of manufacturing: Further evidence. European Operations Management Association Conference. Cambridge.
Nguyen, T.Q.T. (2015). Conducting semi-structured interviews. Qualitative Research Journal, 15 (1), 35–46. DOI: 10.1108/qrj-04-2014-0012
Oliva, R., & Kallenberg, R. (2003). Managing the transition from products to services. International Journal of Service Industry Management, 14 (2), 160–172. DOI: 10.1108/09564230310474138
Paliyenko, Y., Heinz, D., Schiller, C., Tüzün, G.J., Roth, D., & Kreimeyer, M. (2023). Requirements for a smart product-service system development framework. Proceedings of the Design Society, 3, 3085–3094.
Raddats, C., Baines, T., Burton, J., Story, V.M., & Zolkiewski, J. (2016). Motivations for servitization: The impact of product complexity. International Journal of Operations and Production Management, 36 (5), 572–591. DOI: 10.1108/ijopm-09-2014-0447
Rae, J. (2016). 2015 dmi:Design Value Index Results and Commentary. Dmi:Design Management Institute. https://www.dmi.org/page/2015DVIandOTW
Razzouk, R., & Shute, V. (2012). What is Design Thinking, and why is it important?. Review of Educational Research, 82 (3), 330–348. DOI: 10.3102%2F0034654312457429
Ren, M., & Zheng, P. (2024). Towards smart productservice systems 2.0: A retrospect and prospect. Advanced Engineering Informatics, 61, 102466.
Roy, R. & Cheruvu, K.S. (2009). A competitive framework for industrial product-service systems. International Journal of Internet Manufacturing and Services, 2 (1), 4–29.
Ross, S. (2021). CAPEX vs. OPEX: What’s the Difference? Investopedia. Retrieved October 5, 2021, from https://www.investopedia.com/ask/answers/112814/ whats-difference-between-capital-expenditurescapex-and-operational-expenditures-opex.asp
Satta, G., Parola, F., Vitellaro, F., & Morchio, G. (2021). LNG bunkering technologies in ports: An empirical application of the SWOT analysis. KMI International Journal of Maritime Affairs and Fisheries, 13 (1), 1– 21. DOI: 10.54007/ijmaf.2021.13.1.1
Schori, K. (2021). With Design Thinking to a product customers love. Medium. https://medium.com/ geekculture/with-design-thinking-to-a-productcustomers-love-6564a2b7905f
Sgambaro, L., Chiaroni, D., & Urbinati, A. (2024). The design and servitization of products according to the circular economy principles: An ecosystem perspective in the building industry. Journal of Cleaner Production, 142322.
Sholihah, M., Maezono, T., Mitake, Y., & Shimomura, Y. (2019). Towards development a PSS business evaluation: Proposal of internal and external analysis for servitising manufacturers. Procedia CIRP, 83, 363– 368. DOI: 10.1016/j.procir.2019.03.086.
Sousa, R., & da Silveira, G. J. (2019). The relationship between servitization and product customization strategies. International Journal of Operations & Production Management, 39 (3), 454–474.
Trevisan, L., & Brissaud, D. (2017). A system-based conceptual framework for product-service integration in product-service system engineering. Journal of Engineering Design, 28 (10–12), 627–653.
Tukker, A. (2004). Eight types of product-service systems: Eight ways to sustainability? Experiences from SusProNet. Business Strategy and the Environment, 13 (4), 246–260. DOI: 10.1002/bse.414
University of St. Gallen. (2021). Design Thinking. http: //dthsg.com/
Vandermerwe, S., & Rada, J. (1988). Servitization of business: Adding value by adding services. European Management Journal, 6 (4), 314–324. DOI: 10.1016/0263-2373(88)90033-3
Yin, R. (2003). Case Study Research: Design and Methods (Applied Social Research Methods) by Robert K.
Yin (2008–10-31) (4th ed.). SAGE Publications, Inc.
Zheng, P., Lin, T. J., Chen, C. H., & Xu, X. (2018). A systematic design approach for service innovation of smart product-service systems. Journal of Cleaner Production, 201, 657–667.