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Book ChapterDOI

People, Product and Process Perspectives on Product/Service-System Development

01 Jan 2009-pp 219-236
TL;DR: In this paper, the authors elaborate on product and service development process models, as well as system models to propose a frame of reference for multiple perspectives on Product/Service-Systems (PSS) development.
Abstract: The adaptation of Product/Service-Systems (PSS) calls for new development models. On one hand this gives the manufacturing firm possibilities to redesign, upgrade and replace the discrete device that provides the performance their customers are asking for. On the other hand, this new situation has to address aspects that are normally not addressed in early product development, i.e., services. In this chapter, we elaborate on product and service development process models, as well as system models to propose a frame of reference for multiple perspectives on PSS development. These perspectives are of people, product and process. Also, this chapter puts forward implications for the development of PSS models.

Summary (2 min read)

Introduction

  • On one side this businesses give the manufacturing firm possibilities to redesign, upgrade and replace the discrete device that provides the performance their customers are asking for.
  • On the other side, this new situation has to address aspects that are normally not addressed in early product development, i.e., services.
  • These perspectives are people, product and process.
  • Also, this chapter puts forward implications for the development of PSS models.
  • Product-Service System, innovation, engineering design, development models, service perspective, also known as Keywords.

1 Product/Service-Systems

  • When selling products, services are important for the customer to be able to use the device or for the device to perform well, e.g., cars need the services at gas stations and the engine needs maintenance.
  • Then, there are two middle degrees of offerings which put forward that the shift towards a service perspective change how the customer is invoiced, i.e., the engineering firm is paid on the basis of the performance of the device including some services, and at the next degree, all services are included.
  • On the other hand the manufacturer can control and eliminate risks early on.
  • These examples illuminate that additional capabilities besides the classical engineering ones are part and parcel of developing products for a successful PSS offering.
  • Besides describing how to do the work, process models are important tools to change peoples’ mindset in their design thinking.

2 The Role of Models in Product Development

  • There are models that aim to accomplish more accurate project planning, easier coordination, shorter lead times, more efficient knowledge transfer, and effective quality assurance.
  • The comparison between the conceptions sense giving and engineering is interesting.
  • From a sense giving category, project models provide a view of the complex and confusing web of activities and relations.
  • The use of the models is depending on how the models are interpreted by their users and, also, how they are applied within each user’s conceptual framework.
  • Hence, it seems like visualizing a point of view in a model makes people work and think together.

3 Changed View for Development

  • When put into so called s-curves, the interface between a pen and a typewriter can be seen as a breakthrough technology and also as a radical innovation (see Fig. 2).
  • The world around us changes and opens up for innovation opportunities to find new solutions and products.
  • Further, since use is a key for PSS, providing service activities as, for example, leasing (Mont et al. 2006) becomes doable.
  • Going from selling printers to the leasing of printers including the delivery of paper and ink is possible and also done by companies today.

3.1 Product

  • The input from, e.g., a market need or a technical invention, sets the early phases of product development into motion.
  • In an integrated process, the coordination and communication between marketing, design and production is vital (Andreasen & Hein 1987).
  • Another reason might be that the leap from previous models to integrated ones was based on the perception that the previous gave rise to an ‘over the wall’ process (Ullman 2003).
  • In such models, the phases recycle, delivery of the product, its maintenance and its use are visualized as additional aspects to consider (see Fig. 4).
  • One firm’s capabilities and competences are not enough to take care of all lifecycle aspects of a product.

3.2 Service

  • For service development, visualization of process models becomes problematic since services are partly produced by the customers and regarded as activities (Grönroos 2000).
  • Within the service company the internal services (middle of Fig. 5) shows that a service perspective is used throughout the whole process.
  • Looking at the service resources from a manufacturing firm perspective and for the sake of adapting a PSS business illuminates at least three issues to consider.
  • This is a reason for understanding the perspectives respectively, and to take in several perspectives in supporting models.
  • In the example with the dashboard, the perspective here changes to the human activities that the red light will prompt.

4 A Multiple Perspective on PSS Development

  • Engineers are commonly used to do field tests, in the ngineer’s insights into three main types of models, n pro cts, models for services and models for systems.
  • Yet, the importance of involving those that should propose a technical solution, e.g., engineers, designers and/or developers, in the early phases of understanding human activities and needs has been identified a long time ago (Faste 1987).
  • The frame of reference proposed in Fig. 9 visualize that at least three perspectives have to be considered, namely people, process and product.
  • Even this framework can be differently interpreted and used.
  • From a research perspective the framework describes research areas for PSS development.

5 Implications and Suggestions for Industry

  • This chapter has illuminated a number of implications for the realization of PSS.
  • Scrutinizing engineering design and product development having sugg stion for realization is to focus the efforts to bring in m a product perspective to a service perspective.
  • Bridging these distinct perspectives is vital, but not trivial, for PSS development.
  • 6 Suggestions for Further Research ser e glasses on has proven to contribute to the vic understanding (e.g., Fransson), a continuation of this research is anticipated and encouraged.
  • By the same token, it also challenges the processes to deal with a ubiquitous and deliberate innovation process.

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People, Product and Process Perspectives on
Product/Service-System Development
Åsa M. Ericson and Tobias C. Larsson
Abstract
The adaptation of Product/Service-System calls for new development models.
On one side this businesses give the manufacturing firm possibilities to redesign,
upgrade and replace the discrete device that provides the performance their
customers are asking for. On the other side, this new situation has to address
aspects that are normally not addressed in early product development, i.e.,
services. In this chapter, we will elaborate on product and service development
processes models, as well as system models to propose a frame of reference for
multiple perspectives on PSS development. These perspectives are people, product
and process. Also, this chapter puts forward implications for the development of
PSS models.
Keywords: Product-Service System, innovation, engineering design, development
models, service perspective
1 Product/Service-Systems
When selling products, services are important for the customer to be able to use
the device or for the device to perform well, e.g., cars need the services at gas
stations and the engine needs maintenance. And, vice versa, to provide services
tangible support is needed, e.g., rooms and furniture for the hotel business and
phones for the telecommunication company. Thus, the integration of products and
services to meet the customers’ requirements is well known, but, depending on a
perspective, it seems that development processes favor one of them at the expense
of the other. Service literature emphasize that the discrete device is one of several
elements in strategic relationships (Grönroos 2000), hence putting the customer
relationship first. This is because services are activities in collaboration with
customers. Product development literature points out how the product is first

2
settled and then services take form to complement that thing (Ulrich & Eppinger
2008). In engineering industry the word aftermarket is commonly used to
describe the life of a product after it has been designed and developed. Calling this
for aftermarket indicates that a service perspective comes in second place for
engineering firms (Normann 2001). These two perspectives, product perspective
and service perspective, argue that the value carrier for the customer is either the
product or the service, yet customers tend to view their purchase from a more
holistic perspective (Mello 2002). In the last decade, the vision for engineering
industry is to provide their customers with functional offers, meaning that what is
sold is the function or the use of the product (Fransson 2004). Hence, engineering
firms’ business models extend to incorporate a service perspective. This is what is
commonly called a Product/Service-System (PSS) offering, and it can be
described as a special case of servitization (Bains et al. 2007).
Fransson (2004) has developed a model for how the service degree increases in
engineering firms, calling such offerings “functional offers”. A functional offer
starts from a traditional product perspective where the discrete device is supported
by services (at bottom left in Fig. 1). In the next degree of functional offerings, the
service part is extended with services that are not usually offered, e.g., customized
offerings of expertise from production processes. Then, there are two middle
degrees of offerings which put forward that the shift towards a service perspective
change how the customer is invoiced, i.e., the engineering firm is paid on the basis
of the performance of the device including some services, and at the next degree,
all services are included. Here, the sharing of responsibilities to uphold the
functionality of the device also comes into play.
Product offer
Service offer
Incomplete
functional offer
Complete
functional offer
Total
functional offer
Discrete device supported of
consultant services
Revenue based on
performance in use
Use and performance the
provider’s responsibilitiy
Discrete devices and services
Fig. 1. A progress model for functional offerings, after Fransson (2004, p.128).
In a complete functional offering, the engineering firm is completely
responsible for the reliability in operation of the device. On one hand meaning that
if the device is not functioning, the manufacturer is not delivering what is
contracted. On the other hand the manufacturer can control and eliminate risks
early on. Here, the customer’s usage of the device becomes important. Do they use
it as agreed or not? Too much load? Other material than contracted? And so forth.
Therefore, Fransson (2004) suggests that companies should aim for as complete

3
functional offerings as possible, where he propose the engineering firm to own,
use and handle the device in the customer processes as the highest degree of
functional offerings (a total functional offer, at the top in Fig. 1).
Obviously, taking on functional offerings including all services insists on
collaboration beyond your company’s competences. This kind of business models
are suggested to incorporate an organizational structure of a virtual enterprise, i.e.,
where the collaboration takes place cross several company boundaries (Johansson
et al. 2008). There are challenges to realize PSS and provide successful functional
offerings, for example, to understand the voice of the customer more profoundly
than merely obtaining the requirements (Ericson 2007) and, to implement an
innovation approach there is both internal and external issues to tackle (Parida
2008). These examples illuminate that additional capabilities besides the classical
engineering ones are part and parcel of developing products for a successful PSS
offering. Yet, if the challenges can be handled the advantages abound. For
instance, the collaboration in PSS development are expected to reduce some
competition through making the business relationships more stable (Alonso-
Rasgado et al. 2004), also, PSS triggers changed use patterns that reduces the
waste, i.e., provides for ecological sustainability (Mont 2002, Mont et al. 2006).
The integration of products and services into systems in PSS development
provide for the opportunity to find a variety of solutions to meet the contracted
functions, i.e., different degrees of services has an effect on the design of the
product. This indicates that the guiding product development process models need
to address innovation. Today, engineering firms state that they continuously on an
every-day basis deal with innovation due to developing products; however such
innovation is focusing on, e.g., new features on a known end-product, here called
incremental innovation. As discussed above, classical product development seems
delimited when it comes to manage and progress innovation in view of PSS. That
is such innovation that ends in breakthrough products, here called radical
innovation. A radical innovation situation has similarities with wicked problems
(Rittel & Webber 1973), where several aspects are vague and not fully understood,
e.g., What is going to be designed? What should it do? Who is going to use it?
And, in what circumstances? (Randall et al. 2007). To deal with these questions
the design task needs to be addressed from different point of views, i.e., multiple
perspectives
For various development projects, distinct process models give the team
guidance for how to begin and proceed, as well as pointers to what is needed to
fulfill their missions. These processes, whatever they intend to finally produce, are
vital. Also, there is a link between industry and applied research, to develop better
products and to become better designers, the processes must be continually
improved (Dubberly 2009), this motivates engineering design researchers to study
them. Process models are not blueprints of reality; rather they are representations
of the design world to deal with the relational complexity in the processes. In view
of this, the models depend on how the team’s actors interpret and perceive them
(Engwall et al. 2005). Further, the logics for products and services are different,

4
thus not straightforward to integrate. Yet, the interplay between these points of
views is at the core for PSS development. One industrial challenge for turning into
PSS provision is to internally communicate a changed mindset and culture.
Besides describing how to do the work, process models are important tools to
change peoples’ mindset in their design thinking.
Thus, here, we will elaborate on development processes, their models and their
appearance. We will do this on an abstract level to propose a frame of reference
for a multiple perspective on PSS development. We embark from the parts in PSS,
namely product, service and system in light of process models. Also, bear in mind
that the examples and discussions here are outlining the issues as either-or.
Emphasizing the distinct entities and their underpinning logics is a way towards
integration and combination of a product perspective and a service perspective,
not a question of favoring one of them. Further, the point of view in this chapter is
delimited to engineering design taking in additional issues from other disciplines.
2 The Role of Models in Product Development
Roughly, models in general can be seen as managing models, i.e., they intend
to manage some aspects of a process. There are models that aim to accomplish
more accurate project planning, easier coordination, shorter lead times, more
efficient knowledge transfer, and effective quality assurance. Conceptions of
models in product development have been analyzed into five categorizes:
administrating, organizing, sense giving, team building and engineering (Engwall
et al. 2005). The comparison between the conceptions sense giving and
engineering is interesting. From a sense giving category, project models provide a
view of the complex and confusing web of activities and relations. Such project
management models aim to make sense of a confusing world, and the formal
models gives a common language for making sense of ‘chaos’ (Engwall et al.
2005). From an engineering category, the project models visualize a set of
technical challenges. Such project management models are used to solve technical
problems, and formal models convey documented best practice to support work
efficiency (Engwall et al. 2005). The sense giving and the engineering categories
describe two distinct perspectives; the first views the problem as concerning
human aspects and the latter focus on technical aspects. Seemingly, these models
support distinct aspects of the process. The use of the models is depending on how
the models are interpreted by their users and, also, how they are applied within
each user’s conceptual framework. Also, the same model can be used in several
different ways. Yet, it has been identified that the role of models is to enable
communication within and between projects, and that they provide common
models and concepts (Engwall et al. 2005). Hence, it seems like visualizing a
point of view in a model makes people work and think together. Simply, they
focus a dialogue towards a topic from a certain point of view. By the same token,

5
models are not rigid; they evolve when combined and improve during the use and
interpretation of them.
3 Changed View for Development
Broadly, looking on products, a discrete device is more or less stable over time,
for example a quill pen and a pen can be seen as an enhancement of a comparable
product, embodying incremental innovation. Also, a typewriter and a printer can
be seen in the same way. When put into so called s-curves, the interface between a
pen and a typewriter can be seen as a breakthrough technology and also as a
radical innovation (see Fig. 2). In a situation where a company has an agreement
on a 20 year contract to deliver ‘functionality’ or ‘performance in use’ to a
customer, as exemplified here with ‘text on paper’, providing that function with a
pen throughout the contracted time is not viable. During such long time period,
new needs, new goals, new missions etc. come up within the context for the
product. The world around us changes and opens up for innovation opportunities
to find new solutions and products. In a PSS situation, such ‘opportunity leaps’ are
vital for firms’ to foresight and they need processes apt to handle them.
Enhancement
Incremental
Enhancement
Incremental
Breakthrough
Radical
Fig. 2. “Text on paper” – enhancement/incremental and breakthrough/radical.
Further, since use is a key for PSS, providing service activities as, for example,
leasing (Mont et al. 2006) becomes doable. Going from selling printers to the
leasing of printers including the delivery of paper and ink is possible and also
done by companies today. Hypothetically, the degree of services can increase if
the provider takes the responsibilities for the printer to be always functioning.
Practically, to provide that performance will be really challenging, for example,
how to handle a paper jam? If the provider will ‘attack the problem from a
service perspective, a lot of people on the move is needed, or, from a product

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  • ...…as epitomes of a sound material-cycle society (Tasaki et al., 2006), PSSs are supposed to support dematerialization by reducing material and energy intensity (Beuren et al., 2013; Ericson and Larsson, 2009; Mont, 2002; Mont et al., 2006), thereby contributing to sustainability (Evans et al., 2007)....

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TL;DR: A PSS “multi-views” modelling framework should provide a communication support for these actors during PSS design to ensure integration of these components through a shared perspective on the system modelling.
Abstract: Product- and service-design methods traditionally focus on different aspects and use specific models which are difficult to integrate. This paper proposes a PSS “multi-views” modelling framework for supporting integrated PSS design. By coupling models currently used by product and service engineers, the proposed framework should provide a communication support for these actors during PSS design. The “multi-views” perspective should allow them to detail the design of the PSS components until the most technical phases while it also should ensure integration of these components through a shared perspective on the system modelling.

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Abstract: The search for scientific bases for confronting problems of social policy is bound to fail, becuase of the nature of these problems. They are “wicked” problems, whereas science has developed to deal with “tame” problems. Policy problems cannot be definitively described. Moreover, in a pluralistic society there is nothing like the undisputable public good; there is no objective definition of equity; policies that respond to social problems cannot be meaningfully correct or false; and it makes no sense to talk about “optimal solutions” to social problems unless severe qualifications are imposed first. Even worse, there are no “solutions” in the sense of definitive and objective answers.

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"People, Product and Process Perspec..." refers background in this paper

  • ...A radical innovation situation has similarities with wicked problems (Rittel & Webber 1973), where several aspects are vague and not fully understood, e.g., What is going to be designed?...

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Abstract: Chapter 1 Introduction Chapter 2 Development Processes and Organizations Chapter 3 Product Planning Chapter 4 Identifying Customer Needs Chapter 5 Product Specifications Appendix Concept -Scoring Matrix Example Chapter 6 Concept Generation Chapter 7 Concept Selection Appendix A Concept-Screening Matrix Example Appendix B Concept-Scoring Matrix Example Chapter 8 Concept Testing Appendix Estimating Market Sizes Chapter 9 Product Architecture Chapter 10 Industrial Design Chapter 11 Design for Manufacturing Appendix A Material Costs Appendix B Component Manufacturing Costs Appendix C Assembly Costs Appendix D Cost Structures Chapter 12 Prototyping Chapter 13 Robust Design Appendix Orthogonal Arrays Chapter 14 Patents and Intellectual Property Appendix A Trademarks Appendix B Advice to Individual Inventors Chapter 15 Product Development Economics Appendix A Time Value of Money and the Net Present Value Technique Appendix B Modeling Uncertain Cash Flow Using Net Present Value Analysis Chapter 16 Managing Projects Appendix Design Structure Matrix Example

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"People, Product and Process Perspec..." refers background in this paper

  • ...In general, a product development process comprises of a number of sequences, going from early design phases to the launch of the discrete device ( Ulrich & Eppinger 2008 )....

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  • ...Product development literature points out how the product is first settled and then services take form to complement that thing ( Ulrich & Eppinger 2008 )....

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TL;DR: In this article, the authors present a collection of Ludwig von Bertalanffy's writings on general system theory, selected and edited to show the evolution of systems theory and to present its applications to problem-solving.
Abstract: Ludwig von Bertalanffy's theory of laws is applicable to virtually every scientific field. This conceptual approach has had a profound impact on biology, economics, psychology, and demography, with new relevancies today. Gathered here are Ludwig von Bertalanffy's writings on general system theory, selected and edited to show the evolution of systems theory and to present its applications to problem-solving. The new foreword by University of Vienna system theory professor, Wolfgang Hofkirchner, and Centre for Systems Philosophy director, David Rousseau, discusses the theory s contemporary applications.

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TL;DR: In this paper, the authors present the Six Rules of Service Management and the six principles of service management for managing relationships in a market-oriented organization: Structure, Resources and Service Processes.
Abstract: The Service and Relationship Imperative: Managing In Service Competition. Managing Customer Relationships: An Alternative Paradigm in Management and Marketing. The Nature of Services and Service Consumption, and its Marketing Consequences. Service and Relationship Quality. Quality Management in Services. Return on Service and Relationships. Managing the Augmented Service Offering. Principles of Service Management. Managing Service Productivity. Managing Marketing or Market--oriented Management. Managing Total Integrated Marketing Communication. Managing Brand Relationships and Image. Market--oriented Organization: Structure, Resources and Service Processes. Managing Internal Marketing: A Prerequisite for Successfully Managing Customer Relationships. Managing Service Culture: The Internal Service Imperative. Conclusions: Managing Relationships and the Six Rules of Service. Index.

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"People, Product and Process Perspec..." refers background in this paper

  • ...For service development, visualization of process models becomes problematic since services are partly produced by the customers and regarded as activities (Grönroos 2000)....

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  • ...A service is always seen from a customer point of view (Grönroos 2000), meaning that suppliers should take the perspective of their customer....

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  • ...In service literature, ‘invisible services’, i.e., activities hidden in the production processes and not seen by the manufacturer as a competitive advantage (Grönroos 2000) are stressed upon....

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  • ...Service literature emphasize that the discrete device is one of several elements in strategic relationships (Grönroos 2000), hence putting the customer relationship first....

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  • ...‘Value adding activities in a business relationship’ are words that are generally used to describe the interlinked flows in a service process (Grönroos 2000)....

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Frequently Asked Questions (1)
Q1. What have the authors contributed in "People, product and process perspectives on product/service-system development" ?

On one side this businesses give the manufacturing firm possibilities to redesign, upgrade and replace the discrete device that provides the performance their customers are asking for. In this chapter, the authors will elaborate on product and service development processes models, as well as system models to propose a frame of reference for multiple perspectives on PSS development.