A literature and practice review to develop sustainable business model archetypes

http://euro.ecom.cmu.edu/resources/elibrary/ubi/ServiceInnovation.pdf

Service Innovation and Smart Analytics for Industry 4.0 and Big Data Environment

– The purpose of this paper is to report the state‐of‐the‐art of servitization by presenting a clinical review of literature currently available on the topic. The paper aims to define the servitization concept, report on its origin, features and drivers and give examples of its adoption along with future research challenges., – In determining the scope of this study, the focus is on articles that are central and relevant to servitization within a wider manufacturing context. The methodology consists of identifying relevant publication databases, searching these using a wide range of key words and phrases associated with servitization, and then fully reviewing each article in turn. The key findings and their implications for research are all described., – Servitization is the innovation of an organisation's capabilities and processes to shift from selling products to selling integrated products and services that deliver value in use. There are a diverse range of servitization examples in the literature. These tend to emphasize the potential to maintain revenue streams and improve profitability., – Servitization does not represent a panacea for manufactures. However, it is a concept of significant potential value, providing routes for companies to move up the value chain and exploit higher value business activities. There is little work to date that can be used to help practitioners., – This paper provides a useful review of servitization and a platform on which to base more in‐depth research into the broader topic of service‐led competitive strategy by drawing on the work from other related research communities.

/pdf/the-servitization-of-manufacturing-a-review-of-literature-14wwrlak1v.pdf

The servitization of manufacturing: A review of literature and reflection on future challenges

Product services for a resource-efficient and circular economy - A review

Commentators suggest that to survive in developed economies manufacturing firms have to move up the value chain, innovating and creating ever more sophisticated products and services, so they do not have to compete on the basis of cost. While this strategy is proving increasingly popular with policy makers and academics there is limited empirical evidence to explore the extent to which it is being adopted in practice. And if so, what the impact of this servitization of manufacturing might be. This paper seeks to fill a gap in the literature by presenting empirical evidence on the range and extent of servitization. Data are drawn from the OSIRIS database on 10,028 firms incorporated in 25 different countries. The paper presents an analysis of these data which suggests that: [i] manufacturing firms in developed economies are adopting a range of servitization strategies—12 separate approaches to servitization are identified; [ii] these 12 categories can be used to extend the traditional three options for servitization—product oriented Product–Service Systems, use oriented Product–Service Systems and result oriented Product–Service Systems, by adding two new categories “integration oriented Product–Service Systems” and “service oriented Product–Service Systems”; [iii] while the manufacturing firms that have servitized are larger than traditional manufacturing firms in terms of sales revenues, at the aggregate level they also generate lower profits as a % of sales; [iv] these findings are moderated by firm size (measured in terms of numbers of employees). In smaller firms servitization appears to pay off while in larger firms it proves more problematic; and [v] there are some hidden risks associated with servitization—the sample contains a greater proportion of bankrupt servitized firms than would be expected.

/pdf/exploring-the-financial-consequences-of-the-servitization-of-35vleo37zj.pdf

Exploring the financial consequences of the servitization of manufacturing

A Product-Service System (PSS) is an integrated combination of products and services. This Western concept embraces a service-led competitive strategy, environmental sustainability, and the basis to differentiate from competitors who simply offer lower priced products. This paper aims to report the state-of-the-art of PSS research by presenting a clinical review of literature currently available on this topic. The literature is classified and the major outcomes of each study are addressed and analysed. On this basis, this paper defines the PSS concept, reports on its origin and features, gives examples of applications along with potential benefits and barriers to adoption, summarizes available tools and methodologies, and identifies future research challenges.

/pdf/state-of-the-art-in-product-service-systems-rhv5mr09t0.pdf

State-of-the-art in product-service systems

Purpose – The purpose of this paper is to present challenges experienced by UK manufacturing companies undergoing a servitization journey to becoming product‐service providers.Design/methodology/approach – The paper uses an exploratory single‐case study approach based on semi‐structured interviews, and archival data. A total of 22 senior managers were interviewed from the product‐service provider and its two suppliers, resulting in more than 400 pages of interview data. Data were analysed through an inductive research analysis by an emergent identification of patterns.Findings – This research identifies critical and frequent challenges experienced by UK manufacturing companies undergoing a servitization journey to becoming product‐service system (PSS) providers. They are condensed into five pillars, which constitute the architecture of challenges in servitization. The architecture of challenges in servitization provides a full description of the strategy and operations of PSSs.Research limitations/implica...

/pdf/challenges-in-transforming-manufacturing-organisations-into-3g2vnts2av.pdf

Challenges in transforming manufacturing organisations into product‐service providers

Assessment of the commercial viability of selected options for on-orbit servicing (OOS)

Earth observation spacecraft use sun-synchronous orbits because they enable observations of ground targets with similar illumination conditions over different passes. To achieve these orbits, spacecraft shall be orbiting the Earth at a particular inclination, which is a function of the orbiting altitude. In the low-Earth-orbit range, spacecraft experience aerodynamic drag, which makes the spacecraft orbit decay while the orbit inclination remains unchanged, hence loosing the sun-synchronous aspect of the orbit if no corrective measures are taken. A novel method is proposed whereby the sun-synchronous inclination is maintained, using aerodynamic lift, while the spacecraft decays due to aerodynamic drag. To achieve it, a lift-to-drag ratio in the range of 1.0–1.6 is required. This lift-to-drag ratio is not feasible with currently characterized surface properties but it may be achievable in the future. To apply this method in the present, propulsion that partially compensates the drag would be required to lo...

Descending Sun-Synchronous Orbits with Aerodynamic Inclination Correction

This paper presents a set of challenges in the transformation of a traditional manufacturer into a product service system provider. These challenges constitute the main elements of change in the transformation. The paper forms part of the development of a transformation model for servitization and advances prior conceptual research on the shift from a product-centric mode to a servitized one. This is qualitative research based on data collected from 41 industry and academic experts. Nine elements of change were identified, which will allow industry practitioners, who take on the journey of servitization to understand, analyse and plan their organisation’s transformation.

Jennifer Kingston

Papers

State-of-the-art in product-service systems

Challenges in transforming manufacturing organisations into product‐service providers

Assessment of the commercial viability of selected options for on-orbit servicing (OOS)

Descending Sun-Synchronous Orbits with Aerodynamic Inclination Correction

Elements of Change in the Transformation towards Product Service Systems