A Methodology for Adopting Product Service Systems as a Competitive Strategy for Manufacturer

G.C.J. Ang
Product Innovation and Development, Singapore Institute of Manufacturing Technology, Singapore

T. Baines
Cranfield Innovative Manufacturing Centre, Cranfield University, UK

H. Lightfoot
Cranfield Innovative Manufacturing Centre, Cranfield University, UK

Ladda ner artikel

Ingår i: Proceedings of the 2nd CIRP IPS2 Conference 2010; 14-15 April; Linköping; Sweden

Linköping Electronic Conference Proceedings 77:63, s. 489-496

Visa mer +

Publicerad: 2012-10-11

ISBN: 978-91-7393-381-0

ISSN: 1650-3686 (tryckt), 1650-3740 (online)


This paper presents the overview of a research program of the development of a new Product-Service Systems Evaluation (PSSE) methodology. The aim of the PSSE Methodology is to assist manufacturer to asses whether the adoption of a PSS is a good competitive strategy. The paper briefly reviews existing literature related to Servitization and PSS. It describes the competitive elements of a PSS competitive strategy and its performance criteria. Results of the case studies conducted in Singapore to understand the awareness of PSS concept and the requirement sets of the delivery mechanism of the new PSSE methodology are presented. The structure of the new PSSE methodology is briefly outlined at the end of the paper.


Servitization; Product-Service Systems; PSS; Competitive Strategy; Manufacturing Operation Methodology


[1] Baines; T.; Lightfoot; H.; Evans; S.; Neely; A.; Greenough; R.; Peppard; J.; Roy; R.; Shehab; E.; Braganza; A.; Tiwari; A.; Alcock; J.; Angus; J.; Basti; M.; Cousens; A.; Irving; P.; Johnson; M.; Kingston; J.; Lockett; H.; Martinez; V.; Michele; P.; Tranfield; D.; Walton; J. and Wilson; H.; 2007; State of the Art in Product-Service Systems; Journal of Engineering Manufacture; Part B:1543-51

[2] Wise; R. and Baumgartner; P.; 1999; Go Downstream: The New Profit Imperative in Manufacturing”; Harvard Business Review; Sep- Oct:133-41

[3] Baines; T.; Lightfoot; H.; Peppard; J.; Johnson; M.;Tiwari; A. and Shehab; E.; 2008; Towards an operation strategy for product-centric Servitization; International Journal of Operations & Production Management; 29:494-519

[4] Baines; T.; Lightfoot; H.; Benedettini; O. and Kay; J.; 2009; The Servitization of Manufacturing – A Review of Literature and Reflection of Future Challenges; Journal of Manufacturing Technology Management; 20: 547-567

[5] Neely; A.; 2008; The Servitization of Manufacturing: An Analysis of Global Trends; The 14th European Operation Management Association Conference; Ankara; Turkey

[6] Cook; M.; Bhamra; T. and Lemon; M.; 2006; The transfer and Application of Product Service Systems from Academia to UK Manufacturing Firms; Journal of Operations and Production Management; 14:1455-65

[7] Schmenner; R.; 2009; Manufacturing; Service; and Their Integration: Some History and Theory; International of Operations and P3roduction Management; 29:431-443

[8] Oliva; R. and Kallenberg; R.; 2003; Managing the Transition from Products to Services; International Journal of Service Industry Management; 14:1-10

[9] Spring; M. and Araujo; L.; 2009; Service; Services and Products: Rethinking Operations Strategy; International Journal of Operations and Production Management; 29: 444-467

[10] Sakao; T. and Shimomura; Y.; 2007; Service Engineering: A Noble Engineering Discipline for Producers to increase Value Combining Service and Product”; Journal of Cleaner Production; 15:590-604

[11] White; A.; Stoughton; M. and Feng; L.; 1999; Servicising: The quiet transition to Extend Product Responsibility; U.S. Environmental Protection Agency

[12] Bullinger; H.; Fähnrich; K. and Meiren; T.; 2003; Service Engineering - Methodical Development of New Service Products; International Journal of Production Economics; 85: 275-287

[13] Boyt; T. and Harvey; M. ;1997; Classification of Industrial Services; A Model with Strategic Implementation; Industrial Marketing Management; 29 :291- 300

[14] Auramo; J. and Ala-Risku; T. 2005; Challenges for going downstream; International Journal of Logistics: Research and Applications; 8:333

[15] Pawer; K.; Beltagui; A. and Riedel; J.; 2009; The PSO Triangle: Designing Product; Service and Organisation to Create Value; International Journal of Operations & Production Management; 29:468- 493

[16] Brax; S.; 2005; A Manufacturer Becoming Service Provider – Challenges and A Paradox; Managing Service Quality; 15: 142-155

[17] Sakao; T.; Sandstrom; G. and Matzen; D.; 2009; Framing Research for Service Orientation of Manufacturers through PSS Approach; Journal of Manufacturing Technology Management; 20:754-778

[18] Gebauer; H. and Friedli; T.; 2005; Behavioural implications of the transition process from products to services; Industrial Marketing Management

[19] Wilkinson; A.; Dainty; A. and Neely; A.;2008; Changing times and changing timescales: the servitization of manufacturing; International Journal of Operations and Production Management;

[20] van Halen; C.; Vezzoli; C. and Wimmer; R.; 2005; Methodology for Product Service System; Innovation; Koninklijke Van Gorcum; Assen

[21] Kobayashi; H. and Kumazawa; T.; 2006; A Procedural Methodology for Transition to Reuse Business; Proceedings of LCE 2006

[22] ERC.; 2002; The Pursuit of Competitive Advantage: Value Manufacturing in Singapore; Report of Sub- Committee on Manufacturing; Economic Review Committee; October 18; 2002

[23] Goedkoop; M.; van Haler; C.; te Riele; H. and Rommers; P.; 1999; Product Service-Systems; Ecological and Economic Basics; Report for Dutch Ministries of Environment (VROM) and Economic Affairs (EZ)

[24] Vargo; S.; and Lusch; R.; 2004; Evolving to an New Dominant Logic for Marketing; Journal of Marketing; 68:1-17

[25] Levitt; T.; 1980; Market Success Through Differentiation – of Anything; Harvard Business Review; Jan-Feb 1980:83-91

[26] Vandermerwe; S. and Rada; J.; 1988; Servitization of Business: Adding value by Adding Services; European Management Journal; 6:314-324

[27] Silvestro; R.; Fitzgerald; L.; Johnston; R. and Voss; C.; 1992; Towards a Classification of Service Processes; International Journal of Service Industry Management; 3:62-75

[28] Methieu; v.; 2001; Product Services; from a Service Supporting the Product to a Service Supporting the Client; Journal of Business & Industrial Marketing; 16:39-58

[29] Chase; R.; 1991; The Service Factory: A Future Vision; International Journal of Service Industry Management; 60-70

[30] Chase; R.; & Garvin; 1989; The Service Factory; Harvard Business Review 67/4 :61-69

[31] Youngdahl; W.; 1996; An Investigation of ServiceBased Manufacturing Performance Relationships; International Journal of Operations and Production Management; 16/8:29-43

[32] Voss C.; 2003; Applying Service Concepts in Manufacturing; International Journal of Operations and Production Management

[33] Ren; G.; Gregory; M.; 2007; Servitization in Manufacturing Companies: Forming an Academic Field with Meaning; Stocktaking and Coherent Inquiries; POMS College of Service Operations and EurOMA Conference

[34] Mont; O.; 2000; Product Service-Systems; Final Report for IIIEE; Lund University; Lund

[35] Tukker; A.; 2004; Eight Types of Product Service System; Eight Ways to Sustainability? Experiences from SUSPRONET; Business Strategy and the Environment; 13: 246-60

[36] Schlie; T. W.; 1995; Advanced Manufacturing and New directions for Competitive Strategy; Journal of Business Research; 33 :103-114.

[37] Porter; M. E.; 1980; Competitive Strategy; The Free Press; New York.

[38] Baines; T.; 2009; Competitive Strategy; Lecture Note; Cranfield University

[39] Treacy; M. and Wiersema; F.; 1993; Customer Intimacy and Other Value Discipline; Harvard Business Review; Jan-Feb:84-93

[40] Chandler; A.; 1962; Strategy and Structure: Chapters in the History of Industrial Enterprise; MIT Press; Cambridge; MA

[41] Skinner; W.;1969; Manufacturing – The Missing Link in Corporate Strategy”; Harvard Business Review; 47:136-46.

[42] Gyampah; W. A. and Acquaah; M.; 2008; Manufacturing Strategy; Competitive Strategy and Firm Performance: An Empirical Study in a Developing Economy Environment; Int. J. Production Economics 111; pp. 575–592

[43] Platts; K. and Gregory; M.; 1990; Manufacturing Audit in the Process of Strategy Formulation”; International Journal of Production & Operations Management; 10:35-42

[44] Olorunniwo; S.; Hsu; M.; and Udo; G.; 2008; Service Quality; Customer Satisfaction; and Behavioral Intentions in the Service Factory; Journal of Services Marketing; 20:59-71

[45] Kumar; R. and Markset; T.; 2007; Development of Performance-based Service Strategies for the Oil and Gas Industry: A Case Study; Journal of Business and Industrial Marketing; 22:272-280

[46] Panizzolo; R.; 2008; A Methodology to Measure the Value of Services Provided to Customers in Manufacturing Firms; Measuring Business Excellence; 12:3-15

[47] Lee; W.; 2007; A Decision Model for Manufacturing Best Practice Adoption: Linking Practices to Competitive Strategies; EngD Thesis; Cranfield University

[48] Baines; T.; Kay; G.; Adesola; S. and Higson; M.; 2005; Strategic Positioning: An Integrated Decision Process for Manufacturers; International Journal of Operations and Production Management; 25:180- 201

[49] Lim; R.; 2007; Development of a Supply Chain Positioning Methodology for SMEs in Singapore; EngD Thesis; Cranfield University

[50] Chandraprakaikul; W.; 2008; Methodology for Strategic Positioning within Global Supply Chain; EngD Thesis; Cranfield University

Citeringar i Crossref