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VALUE CO-CREATION FOR SUSTAINABLE PRODUCT SERVICE SYSTEM DESIGN: OPPORTUNITY FOR GLOBAL MANUFACTURING COMPANIES
Blekinge Institute of Technology, Faculty of Engineering, Department of Mechanical Engineering. (TIMA)ORCID iD: 0000-0003-3711-264X
2024 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

There is a gradually spreading servitization trend that is forcing industrial manufacturing companies acting in the global market to rethink their business. Manufacturing companies that were traditionally perceived as product-centered, are today increasingly influenced by a service-oriented theory, which claims that manufacturing companies are driven to shift their business focus towards a strategy where customer-perceived value is in the spotlight, and where products are bundled with services to offer Product-Service Systems (PSS). The need to integrate several knowledge domains (i.e. product development, service development, recycling, etc.) means that industry companies need to move “downstream” knowledge from the entire lifecycle into the early phases of the PSS design process where critical decisions are made. At the same time, this raises the awareness of, and requirements for, methods and tools that support cross-disciplinary team collaboration in the process of designing these PSS solutions. Value co-creation is one strategy to address customer collaboration to develop PSS in a framework that allows different stakeholders to participate in defining design concepts and finding the optimal combination of hardware and service that supplies the desired value. Value co-creation strategy and global collaborative innovation are essential for manufacturing companies to explore new ways of designing PSS.

The thesis summarizes the research performed by the author, as an industrial Ph.D. student and director for system innovation at BIGmind Innovation. This thesis aims to study and explore the motivation for, and challenges of, working with value co-creation for PSS design by global manufacturing companies. Firstly, the empirical research determined that there are different challenges that global manufacturing companies and product development face when designing PSS. The work involves exploring value co-creation via a customer collaborative design platform and experience prototyping for product-service system design. The research shows that there is a lack of knowledge about guidelines and processes for collaboration in value co-creation. The research emphasizes that the PSS design methodologies of today neglect to specify the roles and responsibilities of the actors who co-create PSS offerings, and there is a lack of understanding of the entire process and how it is implemented in industrial practice when developing solutions.

Conclusions from this work suggest that government policies can make a fast and major impact on the demand for innovations and PSS development. Additionally, a value co-creation approach promotes large-scale user participation in the early phase of PSS design. To enhance stakeholder participation and gather feedback, experiential prototypes were utilized during the conceptual design phase of the PSS design. To support further development in the area of value co-creation, the Future Innovation Framework (FIF) is proposed as a mechanism to facilitate the adoption and use of value co-creation of PSS design. This thesis discusses the implications, opportunities, and challenges of the FIF for industrial PSS design. The thesis concludes with a discussion on the possibility of using value co-creation for PSS design in different industry domains in the future. 

Place, publisher, year, edition, pages
Karlskrona: Blekinge Tekniska Högskola, 2024. , p. 64
Series
Blekinge Institute of Technology Licentiate Dissertation Series, ISSN 1650-2140 ; 1
Keywords [en]
Product-Service System, Manufacturing company, Innovation Framework, PSS design, Value Co-creation, Case study
National Category
Other Mechanical Engineering
Research subject
Mechanical Engineering; Mechanical Engineering
Identifiers
URN: urn:nbn:se:bth-25612ISBN: 978-91-7295-471-7 (print)OAI: oai:DiVA.org:bth-25612DiVA, id: diva2:1812092
Presentation
2024-02-29, Sal J1630, 371 79 Karlskrona, Karlskrona, 09:30 (English)
Opponent
Supervisors
Funder
VinnovaAvailable from: 2023-11-20 Created: 2023-11-15 Last updated: 2024-02-08Bibliographically approved
List of papers
1. Chinese Product-Service System Innovations Enabled via Governmental Policies: The E-Scooter Case
Open this publication in new window or tab >>Chinese Product-Service System Innovations Enabled via Governmental Policies: The E-Scooter Case
2021 (English)In: Proceedings of the Design Society 2021, Cambridge University Press, 2021, Vol. 1, p. 611-620Conference paper, Published paper (Refereed)
Abstract [en]

Together with increasingly saturated and commoditized global markets companies are driven to shift their business focus, adopting a strategy where customer perceived value is in the spotlight, and where products are bundled with services to offer Product-Service Systems (PSS). In this research we study the emergence of PSS solutions in the Chinese market via a selected case study on e-scooters, based on the governmental decision to ban fossil-fuel scooters in the late 90s and how this has spurred both a fossil-to-electric transformation and a product-to-function transformation. As seen in this research PSS is also an approach that is working well in the Eastern society and especially in China, based on governmental policies. It is gradually being adopted and applied in local industries significantly by China’s leading internet companies (Didi, Alibaba etc). The PSS concept represented by e-bike cases in China has gradually penetrated into different industries. With governmental decisions as the key turn-point, it can be seen in practice and development that China’s related service industry is using e-bike PSS to carry out the new business model from selling e-bikes to providing service-oriented solutions. 

Place, publisher, year, edition, pages
Cambridge University Press, 2021
Series
Proceedings of the Design Society, ISSN 2732527X
Keywords
Product-Service Systems (PSS), Case study, Circular economy
National Category
Other Engineering and Technologies not elsewhere specified
Research subject
Mechanical Engineering
Identifiers
urn:nbn:se:bth-22064 (URN)10.1017/pds.2021.61 (DOI)2-s2.0-85117835130 (Scopus ID)
Conference
23rd International Conference on Engineering Design, IECD 2021, Gothenburg, Sweden, 16-20 August,
Funder
Knowledge Foundation, 20180159
Note

open access

Available from: 2021-08-30 Created: 2021-08-30 Last updated: 2023-11-20Bibliographically approved
2. PSS Value Transformation: From Mass-Manufactured Vehicles to Provision of Mass-Customized Services – A Case Study of Designing and Prototyping Customized Digital Services for SAIC Motor in China
Open this publication in new window or tab >>PSS Value Transformation: From Mass-Manufactured Vehicles to Provision of Mass-Customized Services – A Case Study of Designing and Prototyping Customized Digital Services for SAIC Motor in China
2022 (English)In: Proceedings of the Design Society, Cambridge University Press, 2022, p. 1179-1188Conference paper, Published paper (Refereed)
Abstract [en]

This work focuses on exploring how to transform the PSS strategy through conceptual design and prototyping to a way in which different stakeholders in the case car company – SAIC Motor – can experience and give feedback on the PSS strategy, analyze the impact of the PSS strategy on the process of customized digital service design in a traditional Chinese car company. Also, the work discusses how to increase the service value for different stakeholders in the overall PSS system

Place, publisher, year, edition, pages
Cambridge University Press, 2022
Series
Proceedings of the Design Society, E-ISSN 2732-527X
Keywords
product-service systems (PSS), experience design, prototyping, case study
National Category
Other Mechanical Engineering
Research subject
Mechanical Engineering
Identifiers
urn:nbn:se:bth-23067 (URN)10.1017/pds.2022.120 (DOI)2-s2.0-85131379534 (Scopus ID)
Conference
17th International Design Conference, DESIGN 2022, Virtual, Online, 23 May 2022 through 26 May 2022
Funder
Knowledge Foundation, 20180159
Note

open access

Available from: 2022-06-07 Created: 2022-06-07 Last updated: 2023-11-20Bibliographically approved
3. Future innovation framework (FIF) for value co-creation of smart Product-Service System design in a global manufacturing company
Open this publication in new window or tab >>Future innovation framework (FIF) for value co-creation of smart Product-Service System design in a global manufacturing company
2023 (English)Manuscript (preprint) (Other academic)
Abstract [en]

Today, the Product-Service Systems (PSS) methodology is challenged by the emerging trend of digital servitization in supporting the development of the primarily product-oriented companies. Value co-creation strategy and global collaborative innovation are important for product-oriented industry to explore new ways of designing of smart PSS. In this paper, the Future Innovation Framework (FIF) is proposed as a mechanism to facilitate the adoption and use of value co-creation of smart PSS design in global manufacturing companies. Through qualitative research and literature review, the research focused on the collaboration between typical stakeholders in manufacturing industry, defining a smart PSS design process, and explaining how value co-creation could more effectively support the PSS design. This study proposes the FIF for smart PSS design from the perspective of value co-creation, to support the collaborative innovation teamwork, customer involvement and decision-making in the early design phase of smart PSS. The paper explains each of the design processes in which the product-oriented industry can use the FIF framework when designing smart PSS. The FIF was applied to an industrial smart PSS case – the design of the new product and service offering by automotive manufacturer Volkswagen. The FIF was used to verify the design of customer solution proposals for smart PSS. This paper discusses the implications, opportunities and challenges of the FIF for industrial smart PSS design. The paper concludes with a discussion on the possibility of using FIF in different industry domains in the future.

Keywords
Smart Product-Service System, Future Innovation Framework (FIF), PSS design process, Value co-creation, Case study
National Category
Other Mechanical Engineering
Research subject
Mechanical Engineering
Identifiers
urn:nbn:se:bth-25615 (URN)
Funder
A multiscale, cross‐disciplinary approach to the study of climate change effect on ecosystem services and biodiversityVinnova
Available from: 2023-11-15 Created: 2023-11-15 Last updated: 2024-01-12Bibliographically approved

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