Modular Product Architecture’s Decisions Support For Remanufacturing-Product Service System Synergy

Remanufacturing is identified as the most viable product end-of-life (EOL) management strategy. However, about 80% of manufactured products currently end up as wastes. Besides other benefits, the product service system (PSS) could curtail the main bottlenecks to remanufacturing namely quantity, quality, recovery time of used product, and negative perception of remanufactured products. Therefore, the integration of PSS and remanufacturing has been increasingly recommended as an enhanced product offering. However, an integration that is informed by mathematical analysis is missing. Meanwhile, the variables that bolster the performance of PSS and remanufacturing are substantially influenced by product development (PD) decisions. Among the PD strategies, modular architecture is a technique that significantly enhances product lifecycle management. Consequently, modular design is a suitable PD approach for an enhanced PSS-remanufacturing enterprise. Furthermore, it is argued that the PSS-remanufacturing initiative is poised to be a sustainable venture due to the sustainability philosophy of PSS. However, the acclaimed sustainability of PSS is flawed if a high environmental impact is associated with the production of the parts that constitute the product which is offered in PSS. Therefore, it is essential to consider the environmental implications of the production of the parts that are contained in the product architecture during PD. This research identifies that cost, core-cleaning, and product serviceability are critical variables for the success of remanufacturing and PSS. The research employs pairwise assessment methodology to evaluate the compatibility of module pairs comprehensively and obtains the modular pair compatibility indices via fuzzy system. Similarly, cost data are obtained. The study develops an optimization model that determines viable modular configuration(s) from among several alternatives in order to realize an enhanced PSS-remanufacturing business. Furthermore, the research performs lifecycle assessment (LCA) of module variants and determine the modular architecture with minimal environmental Impact. Having obtained the optimal architectures with regard to cost, core cleaning, product serviceability and environmental impacts, multi-attribute utility theory (MAUT) is engaged to collectively assess the degree of sustainability of the product architectures. The study offers analytical-based guidance to the original equipment manufacturers (OEMs) in making product architecture decisions in order to realize the sustainable PSS-remanufacturing enterprise

A Framework for Business Models in Business Value Networks

Business models are oftentimes considered as the most discussed and least understood aspect of the web (Rappa 2001). Despite a rough understanding that seems to be widespread namely an aggregation of essential, relevant aspects from economic branches providing a compressed overview on business activities dimensions, components, perspectives and core issues are depicted non-uniformly and confusing [PeKT01; Wirt01]. In particular, literature lacks contributions that particularly consider business model frameworks for networked economies, especially newly emerging loosely-coupled configurations as assumed in the business web theory. In order to address these shortcomings, we introduce a business model framework for business value networks as a result from an extensive literature review comprising two areas. Firstly, I conduct a state-of-the-art analysis of existent definitions of the term business model with emphasize on the elements that should be included, i.e. the relevant aspects of business activity. The study confirms the statements made by several authors: Some elements are broadly accepted a description of created and offered value, revenue models, and business actors was included in more than 75% of the literature contributions. However, there are substantial differences in other components, e.g. market consideration, cost structure, or technology. In this connection, I also present a segregation of the concept business model from related concepts. Secondly, I outline the characteristics of business value networks as a newly emerging organizational form of loosely-coupled business networks. As a result, the partner network and the roles of these actors, their core competencies, and the role of the customer are identified as crucial elements that are to be considered in business models of companies acting in business value networks. Resulting from the literature analysis and a brief outlook how the customers are likely to be integrated in value creation processes in future, I propose a business model framework for business value networks comprising the five basic pillars value creation model, partner model, value offering model, customer model, and profit model. These pillars are decomposed into eleven business model components value configuration, core competencies, position in value system, partners and their roles, service/product portfolio, target customer, distribution channel, customer integration, revenue, pricing, and cost structure. Thus, the contribution of this article is twofold. On the one hand an updated understanding of the concept of business models within business value networks shall be established. On the other hand, I provide a framework which shall serve as a basis for further research, be it for the creation of a business model taxonomy in networked economies, the analysis of existent networked business models, or the development of concrete business models in the business value network context

Understanding service modularity - antecedents, processes, and operationalization

The concept of service modularity has emerged as a promising solution to achieve a sound balance between growing customer requirements for individualization and a companya s necessity to standardize services for cost efficiency reasons. Although service modularity has been on the academic agenda for some time, not many examples of modularized service portfolios can be identified. Therefore, this dissertation aims to examine service modularity in the context of professional services by connecting the decisions made before, during, and after service modularization with a specific focus on the effect on the sales process. The enhanced understanding of the concept is expected to uncover new research gaps in service modularity, as well as promote its application in the context of professional services. Apart from its theoretical contribution, this dissertation will provide practitioners with an improved understanding with respect to what it means to offer a modular service portfolio, what needs to be done for the transformation, as well as what to expect from its completion

The Functional-Engineered Product-Service System (FEPSS) model

Throughout recent years, environmental perils have increased and awareness regarding such dangers has improved proportionally. In light of the growing concerns, and coupled with fiercer competition and legislation, product based solutions to meet present and future needs have been deemed insufficient to ensure the planet’s survival. Thus, the birth of integrated product-service offerings, where the product is associated to add-on services, enhancing its performance and achieving higher levels of value for the customer, as well as the manufacturer, with embedded ecological advantages. The service-oriented perspective of delivering solutions is known as Product-Service Systems (PSSs). However, despite advances in acknowledging the benefits that lie in adopting a PSS to answer consumer needs, a formal approach to developing PSS solutions is absent. This dissertation investigates the integration of product design and service design strategies into product-service offerings: overall processes for this integration are present, but the intricate steps of each phase are missing. A literature review examines the most dominant design approaches, as well as design frameworks to structure the PSS design process. The outcome of the review led to the absence of a generic design framework as existing design approaches and processes seemed adapted to a specific context and field. From the examination of the respective literature, we present a four-stage design process, entitled the Functional-Engineered Product-Service System (FEPSS) model, built on a design science approach. Ideation and task analysis, conceptual design, embodiment design, and validation and release are thoroughly detailed with the appropriate tools to define the elements of a PSS. The research then concentrates on the first two stages as they represent the core of PSS design and development process. Ideation and task analysis highlight the use of qualitative tools to define customer requirements, as well as quantitative ones, such as the Kano model, Quality Function Deployment (QFD), the fuzzy logic, and the Analytic Hierarchy Process (AHP) to prioritize these requirements and define the value-creating ones as the basis of the PSS design. Conceptual design presents two approaches to define PSS concepts. The first consists of a functional decomposition approach based on adapting morphological matrices (MMs) to a product-service extending traditional MMs to include the service elements and selection of stakeholders in a product-service integrated setting. The choice of the concept is determined according to a life cycle modelling that illustrates the environmental impact of the proposed concept(s) and compares it/them to the existing offering. The second opts for the QFD for PSS tool augmented by fuzzy logic and the AHP to determine the product and service components of the PSS. Then, the use of Axiomatic Design (AD) shows how a functional decomposition and QFD for PSS can be used to develop PSS modules. Four case studies conducted in the agricultural and biomedical field illustrate the use of the FEPSS and, in particular, its first two phases. The results achieved show the potential of such an approach when implementing a PSS approach, especially in the case of a manufacturer that wants to shift from producing products to providing integrated product-service offerings. At the same time, from a more general perspective, the research work highlighted the benefits of PSSs as they allow the achievement of more sustainable solutions without decreasing the customer values

Identifying innovation opportunities emerging from technology and business trends

PhD thesis in TechnologyBusinesses are continuously looking for opportunities to innovate. There is a gap in the literature regarding innovation models and approaches that are systematic, practical and easy to apply. This thesis addresses this issue through investigation of the potential for identifying innovation opportunities emerging from technology and business trends and of how to evaluate ideas. Technology trends depict the evolving direction of technology; can they be used to innovate products? Inspired by ideation literature, a novel model is presented which combines technology trends with product breakdown to generate product innovation ideas. The empirical evidence suggests that the model can generate quality ideas. Further investigation of technology trends indicated that the largest trend of the near future will be autonomation, which suggests that many products and services will be delivered in a totally autonomous way. Operations that can be standardized have a high likelihood of being autonomated in the near future. This is because sensor advancement has made it possible to install low-cost sensors on machines; these act as senses for the machine, and then the sensor data can be processed in digital algorithms to carry out fine-tuned decision-making for the machine. This enables a paradigm shift in how machines and applications are operated. The megatrend of electrification has dominated the past century, during which the leading inspiration for innovators was how to electrify industry, households, automobiles, etc. The inspiration for future innovation could likewise be how to autonomate the same. Anecdotal evidence supports this claim. A model and case study are presented in this regard. In a similar way to technology trends, business trends are also agents of change, revealing how businesses are evolving. The largest trend observed is servitization. Companies are gradually shifting away from the traditional model of selling just products towards selling the functionality of the products as services. The shelf life of many products has been significantly reduced, and there is stiff competition in the market. Services, on the other hand, are more sustainable. Servitization is here defined as reducing tangibility in the product. A utility-driven approach is developed, in which the products are broken down into the utility features that encourage the customer to purchase the product and barriers that prohibit the customer from purchasing the product. The model presented in the study presents options to gradually enhance utility and reduce both barriers and the overall tangibility of the product. That can assist users in transforming their products into services. Another way to servitize is to add services to a product in the form of product-service-system. Financing/ownership value added services are explored, and the changes they bring to the business model are studied. These services do not require changes to the product or technological development and can add service benefits to the product. A systematic framework is presented, in which the options can be individually evaluated, and suitable value-added service options can be selected. Another important business trend observed is outsourcing. Start-ups and high growth companies have limited resources, and they do not have the flexibility to carry out all business activities internally. Companies tend to outsource business activities, to survive with limited resources. However, sometimes outsourcing the core activities of the business can invite competition. In this thesis, a decision tree for evaluating business activities for outsourcing purposes is presented. The decision tree assists users in evaluating those activities that can be outsourced with minimal side effects for the business. Traditionally, ideas are screened based on subjective judgement after a brainstorming session. In this thesis, a systematic high-level idea screening tool is presented, which is useful for screening ideas in a short period of time. Six key parameters, which are producibility, problem size, market size, novelty, profit margin and business alignment, are pillars of the idea screening tool, compiled by assorting the idea screening literature. The tool is useful for screening the ideas generated in the aforementioned models. Together, the appended papers contribute to filling the gap in the innovation literature regarding practical guidelines to innovate businesses

A trilogy on discontinuous innovation. Part I : search

In this article we discuss the concept of Discontinuous Innovation (DI) and how it differs from incremental (or steady-state) innovation. We propose a model to conceptualise the different aspects of DI and discuss the complex nature of the DI process through an investigation of previous literature, and propose a sequence of articles roughly following the key components as described in the conceptual model, beginning with aspects of &lsquo;search&rsquo;. We then describe an on-going multi-national action research program established to investigate DI through the development of learning networks of firms in several European nations and Australia. The research progress to date is outlined and initial results of analysis on both quantitative and qualitative data collected thus far is used to explore how companies go about searching for clues or ideas about potential discontinuous innovations, which may either create competitive advantage for, or threaten the survival of the business. Key outcomes of the research to date include the identification of the most common search strategies within the participating companies and some descriptive analysis on just how these strategies are implemented in targeted firms. Finally we describe the proposed future research program and the two papers to follow completing the planned three part series on Discontinuous Innovation.<br /