Service Systems Implementation pp 89-111 | Cite as
Towards an Operations Strategy for the Infusion of Product-Centric Services into Manufacturing
Abstract
The work in this chapter is concerned with product-centric servitization. This is where a portfolio of services are formed and integrated to support product availability and use. Such servitization can be a valuable source of revenue for a manufacturer, yet little attention has been given to the configuration of the wider operations strategy that needs to be in place to deliver integrated products and services successfully. Therefore, the purpose of this chapter is to put forward a generic set of characteristics for such operations. Our intention is that these characteristics will be valuable to practitioners contemplating sophisticated forms of servitization, as they suggest the likely and significant changes that will be needed to the operations strategy of a conventional manufacturing organisation.
Keywords
Servitization service operations service marketing service systems operations management framework service scienceNotes
Acknowledgements
We would like to acknowledge the support of EPSRC via the Cranfield Innovative Manufacturing Research Centre programme for providing the funds for this research. We would also like to thank our anonymous reviewers for their constructive and insightful comments.
References
- Ambler, T. (2005), A long perspective on marketing, European Business Forum, 21, 50–53MathSciNetGoogle Scholar
- Anderson, J. and Narus, J. (1995), Capturing the value of supplementary services, Harvard Business Review, Jan–Feb, 75–83Google Scholar
- Anderson, J. et al. (1989), Operations strategy: A literature review, Journal of Operations Management, 8(9), 133–157CrossRefGoogle Scholar
- Baines, T. et al. (2005), Strategic positioning – An integrated decision process for manufacturers, International Journal of Operations and Production Management, 25(2), 180–201CrossRefGoogle Scholar
- Baines, T. et al. (2007), State-of-the-art in product-service systems, Proceedings of the Institution of Mechanical Engineering (Part B), Journal of Engineering Manufacture, 221(10), 1543–1552CrossRefGoogle Scholar
- Baines, T. et al. (2009), Servitized manufacture: Practical challenges of delivering integrated products and services, Proceedings of the Institution of Mechanical Engineering (Part B), Journal of Engineering Manufacture, 223, 1207–1215CrossRefGoogle Scholar
- Cesborough, H. (2005), Toward a science of services, Harvard Business Review, 83, 16–17Google Scholar
- Chase, R. (1978), Where does the customer fit in a service operation, Harvard Business Review, 56(6), 137–142Google Scholar
- Chase, R. and Apte, U. (2007), A history of research in service operations: What’s the big idea? Journal of Operations Management, 25, 375–386CrossRefGoogle Scholar
- Chase, R. and Garvin D. (1989), The service factory, Harvard Business Review, 67(4), 61–69Google Scholar
- Chesborough, H. and Spohrer, J. (2006), A research manifesto for services science, Communications of the ACM, 49(7), 35CrossRefGoogle Scholar
- Cohen, M. (2007), Power by the hour: can paying only for performance redefine how products are sold? www.knowledge.wharton.upenn.edu Accessed 25 June 2008
- Cohen, M. et al. (2006), Winning in the aftermarket, Harvard Business Review, May, 129–138Google Scholar
- Collier, D. and Meyer, S. (1998), A service positioning matrix, International Journal of Operations and Production Management, 18(12), 1223–1244CrossRefGoogle Scholar
- Cook, D. et al. (1999), Service topologies: A state of the art review, Production & Operations Management, 8(3), 318–338CrossRefGoogle Scholar
- Cox, A. et al. (2001), Supply chains and power regimes: Toward an analytic framework for managing extended networks of buyer and supplier relationships, Journal of Supply Chain Management, 37(2), 28CrossRefGoogle Scholar
- Davies, A. et al. (2004), Moving base into high-value integrated solutions: A value stream approach, Industrial and Corporate Change, 13(5), 727–756CrossRefGoogle Scholar
- Davies, A. et al. (2006), Charting a path towards integrated solutions, MIT Sloan Management Review, 43(7), 39–48Google Scholar
- Drucker, P.F. (1954), The Practice of Management, Harper & Row, New York Google Scholar
- Edvardsson, B. et al. (2008), Initiation of business relationships in service-dominant settings, Industrial Marketing Management, 37(3), 339–350CrossRefGoogle Scholar
- Fisk, R. et al. (1993), Tracking the evolution of the services marketing literature, Journal of Retailing, 69(1), 61–103CrossRefGoogle Scholar
- Ford, H. (1922), My Life and Work, Kessinger Publishing, LLC, 2004Google Scholar
- Galbraith, J. (2002), Organising to deliver solutions, Organizational Dynamics, 31(2), 194–207CrossRefGoogle Scholar
- Gebauer, H. and Friedli, T. (2005), Behavioural implications of the transition process from products to services, Journal of Business & Industrial Marketing, 20(2), 70–80CrossRefGoogle Scholar
- Gebauer, H. et al. (2006), Success factors for achieving high service revenues in manufacturing companies, Benchmarking, An International Journal, 13(3), 374–386CrossRefGoogle Scholar
- Goedkoop, M. et al. (1999), Product Service-Systems, Ecological and Economic Basics, Report for Dutch Ministries of Environment (VROM) and Economic Affairs (EZ) Dutch Policy Document on Environment and EconomyGoogle Scholar
- Hayes, R. and Wheelwright, S. (1984), Restoring Our Competitive Advantage Through Manufacturing, Wiley, New York Google Scholar
- Heineke, J. and Davis, M. (2007), The emergence of service operations management as an academic discipline, Journal of Operations Management, 25, 364–374CrossRefGoogle Scholar
- Hill, T. (2000), Manufacturing Strategy, Palgrave, Great Britain Google Scholar
- Howells, J. (2000), Innovation and Services, UMIST Internal Publication, Manchester Google Scholar
- Jacob, F. and Ulaga, W. (2008), The transition from product to service in business markets: An agenda for academic inquiry. Industrial Marketing Management, 37(3), 247–253CrossRefGoogle Scholar
- Kellog, D. and Winter N. (1995), A framework for strategic service management, International Journal of Production Management, 13, 323–337Google Scholar
- Kotler, P. (1967), Marketing Management Analysis, Planning and Control, Prentice-Hall, Englewood Cliffs Google Scholar
- Lamming, R. (1993), Beyond Partnership – Strategies for Innovation and Lean Supply, Prentice Hall International, London Google Scholar
- Levitt, T. (1960), Marketing myopia, Best of Harvard Business Review, July/August 2004, 138–149Google Scholar
- Levitt, T. (1976), The industrialisation of service, Harvard Business Review, 54(5), 63–74Google Scholar
- Levitt, T. (1981), Marketing intangible products and product intangibles, Harvard Business Review, May–June, 92–104Google Scholar
- Levitt, T. (1983), After the sale is over, Harvard Business Review, 61(5), 87–93Google Scholar
- Lewis, M. et al. (2004), Beyond products and Services: opportunities and threats in servitization. IMS International Forum, Italy Google Scholar
- Lovelock, C. and Gummesson, E. (2004), Whither services marketing? In search of a new paradigm and fresh perspectives, Journal of Service Research, 7(1), 20–42CrossRefGoogle Scholar
- Luiten, H. et al. (2001), Source: Sustainable Product Service-Systems: The Kathalys Method, Proceedings Second International Symposium on Environmentally Conscious Design and Inverse Manufacturing, 190–197Google Scholar
- Malleret, V. (2006), Value creation through service offers, European Management Journal, 24(1), 106–116CrossRefGoogle Scholar
- Manzini, E. et al. (2001), Product service-systems: using an existing concept as a new approach to sustainability, Journal of Design Research, 1(2)Google Scholar
- Martin, C. and Horne, D. (1992), Restructuring towards a service orientation, International Journal of Service Industry Management, 3(1), 25–38Google Scholar
- Mathieu, V. (2001), Product services: From a service supporting the product to service supporting the client, Journal of Business & Industrial Marketing, 16(1), 39–58MathSciNetCrossRefGoogle Scholar
- Maxwell, I. and van der Vorst, R. (2003), Developing sustainable products and services, Journal of Cleaner Production, 11, 883–895CrossRefGoogle Scholar
- Meijkamp R. (2000), “Changing Consumer Behaviour Through Eco-efficient Services: An empirical study of car sharing in the Netherlands”. Delft University of Technology: 296Google Scholar
- Miller, D. et al. (2002), The problem of solutions: balancing clients and capabilities, Business Horizons, Mar–Apr, 3–12CrossRefGoogle Scholar
- Mills, et al. (1996), A framework for the design of manufacturing process strategies, International Journal of Operations and Production Management, 15(4)Google Scholar
- Mont, O. (2000), Product Service-Systems, Final Report for IIIEE, Lund UniversityGoogle Scholar
- Mont, O. (2001), Introducing and Developing a PSS in Sweden, IIIEE Reports 2001:6 Lund University, SwedenGoogle Scholar
- Mont, O. (Intl. Inst. Indust. Environ. Econ., Lund University); Lindhqvist, T. The role of public policy in advancement of product service systems. Source: Journal of Cleaner Production, v 11, n 8 SPEC., December, 2003, p 905–914Google Scholar
- Morgan, R. and Hunt, S. (1994), The commitment-trust theory of relationship marketing, Journal of Marketing, 58(3), 20–38CrossRefGoogle Scholar
- Morris, B. and Johnson R. (1987), Dealing with inherent variability: the difference between manufacturing and service, International Journal of Operations and Production Management, 7(4), 13–22CrossRefGoogle Scholar
- Mulholland, D. (2000), Technology threatens sector’s profits, companies need to shift business to service, upgrade sales, Defence News, Feb 7Google Scholar
- Oliva, R. and Kallenberg R. (2003), Managing the transition from products to services, International Journal of service Industry Management, 14(2), 1–10CrossRefGoogle Scholar
- Oman I. (2003), Product Service-Systems and their impacts on sustainable development – a multi-criteria evaluation for Austrian Companies. FrontiersGoogle Scholar
- Quinn et al. (1990), Beyond products: services-based strategy, Harvard Business Review, Mar–Apr, 58–67Google Scholar
- Samli et al. (1992), What pre-sale and post-sale services do you need to be competitive, Industrial Marketing Management, 21, 33–42CrossRefGoogle Scholar
- Sasser, E. (1976), Match supply and demand in service industries, Harvard Business Review, Nov–Dec, 133–140Google Scholar
- Schmenner, R. (1995), Service Operations Management, Prentice-Hall, Englewood Cliffs Google Scholar
- Schroeder, R. and Lahr, T. (1990), Development of Manufacturing Strategy – A Proven Process, Proceedings of the Joint University Conference on Manufacturing Strategy, MichiganGoogle Scholar
- Shostack, G. (1977), Breaking free from product marketing, Journal of Marketing, 41(2), 73–80CrossRefGoogle Scholar
- Shostack G., (1982), “How to design a service”, European Journal of Marketing, 16(1), 49–63Google Scholar
- Silvestro, R. (1999), Positioning service along the volume-variety diagonal, International Journal of Operations and production Management, 19(4), 399–420CrossRefGoogle Scholar
- Spohrer et al. (2007), Steps toward a science of service systems, Computer, 40, 71–77CrossRefGoogle Scholar
- Taylor, M. (1936), Progress in marketing research, Journal of Marketing, 1(1), 56–64CrossRefGoogle Scholar
- Thompson, J. (1967), Organizations in Action, McGraw-Hill, New York Google Scholar
- Tukker, A. (2004), Eight types of product service system; Eight ways to sustainability? Experiences from SUSPRONET, Business Strategy and the Environment, 13, 246–260CrossRefGoogle Scholar
- Tukker, A. and Tischner, U. (2006), New Business for Old Europe, Greenleaf Publishing, Sheffield Google Scholar
- Vandermerwe, S. and Rada J. (1988), Servitization of business: adding value by adding services, European Management Journal, 6(4), 314–324CrossRefGoogle Scholar
- Vargo, S. and Lusch, R. (2004), Evolving to a new dominant logic for marketing, Journal of Marketing, 68, 1–17CrossRefGoogle Scholar
- Vargo, S. et al. (2008), On value and value co-creation: A service systems and service logic perspective, European Management Journal, 26, 145–152CrossRefGoogle Scholar
- Voss, C. (1992), Applying service concepts in manufacturing, International Journal of Operations and Production Management, 12(4), 93–99MathSciNetCrossRefGoogle Scholar
- White, R. et al. (1999), Servicizing: The Quiet Transition to Extended Product Responsibility, Report from Tellus Institute Google Scholar
- Windahl, C. and Lakemond N. (2006), Developing integrated solutions: The importance of relationships within the network, Industrial Marketing Management, 35(7), 806–818CrossRefGoogle Scholar
- Windahl, C. et al. (2004), Manufacturing firms and integrated solutions: characteristics and implications, European Journal of Innovation Management, 7(3), 218–228CrossRefGoogle Scholar
- Wise, R. and Baumgartner, P. (1999), Go downstream: The new profit imperative in manufacturing, Harvard Business Review, Sept–Oct, 133–141Google Scholar
- Womack, J. et al. (1990), The Machine That Changed the World, Maxwell MacMillan International, New York Google Scholar
- Wong, M. (2004), PSS in the Consumer Goods Industry, Ph D Thesis, Cambridge University Google Scholar