Investigating the development and delivery of integrated product-service systems

Driven by the highly cyclical nature of their increasingly commoditised product offerings, many capital goods manufacturers are seeing the benefits of delivering services integrated with their core product offerings. Whilst existing research is almost unanimous in advocating the value of a servitization strategy, understanding how these product-service systems (PSSs) can be developed and delivered remains a significant challenge. The closely related PSS field, which has its heritage in the environmental and social science disciplines, is more mature in this area and a number of models have been proposed. The research reported within this thesis contributes to knowledge by investigating whether the approaches to PSS development, reported within the PSS literature, reflects the PSS development practice of servitized manufacturers. More specifically, soft systems methodology was used to explore the delivery of PSSs within the UK railway industry in order to gain an understanding of the implications for developing new PSSs. With this understanding, the existing approaches to PSS development were evaluated with respect to one servitized manufacturer through an in-depth single case study. The findings highlighted a number of significant differences between the practice of the servitized manufacturer and the literature. A survey was used to investigate whether the differences were generalisable to a larger sample of servitized manufacturers. The findings point towards the simplification of the reported phases within PSS development and the inclusion of a number of previously unreported processes and activities. Based on these results a new model of PSS development is proposed to better reflect the practice of servitized manufacturers. The model, consisting of four phases and seventeen processes, was operationalised in the form of a workbook and tested through application. Applying the workbook resulted in the successful creation of a number of new PSS concepts

Gestion durable des ressources dans la chaîne de valeur européenne de l’acier

The present thesis delved into the current and future interactions within the European Steel Industry and of it with the environment it is a part of, with the main objective of supporting decision- and policy-making efforts oriented towards sustainability and circularity, helping to shape the future of steel in the European Community. The thesis used the European Steel Industry as a case study to explore the potential benefits of integrating Life Cycle Assessment (LCA) into System Dynamics (SD) under the scopes of Circular Economy and Industrial Ecology. A model representative of the European Steel Industry was built modularly in Stella Architect, following ILCD and ISO guidelines and standards for LCA. Throughout 4 of the 5 articles developed for the present thesis, 21 simulation runs were performed on the aforementioned model: 12 on identifying potential constraints and benefits of End-of-Life policies; 5 assessing the advantages and disadvantages of different Supply Chain Integration (SCI) strategies along European steel supply chains; and 4 addressing the interactions between biophysical and economic dynamics in the steel market. An additional article was developed using the methodologies of Circles of Sustainability and Sustainable Urban Metabolism to appraise the challenges and contributions of steel as part of servitization initiatives in urban environments. Overall results indicated that integrating LCA into SD was not only feasible and capable of reproducing results, trends and behaviors from previous scientific studies, but also of contributing to both methodologies in different levels. This approach has potential to interest policy-makers who seek more granularity within the European Steel Industry as well as decision-makers searching for a broader understanding of their operation’s dynamics beyond the gates, notably regarding raw material scarcity, resource self-sufficiency, and resource ownership retention. From the results of each article it was observed that, (a) pushing for recycling and reuse could generate interesting medium- to long-term results for circularity, transitioning away from fossil fuels and developing a whole new market around end-of-life services; (b) different SCI approaches can be environmentally and strategically promising; (c) six key biophysical variables can distinctively affect spot prices, future prices, EBITDA margins, capacity utilization, dividend payouts, and costs of steelmaking; and (d) servitization can provide significant benefits to sustainable cities, while also being able to substantially alter the supply-side dynamics of steelmaking, highlighting how important it is for steelmakers to pay close attention to the service-providing initiatives that may concern their clients and products.La présente thèse entend examiner les interactions présentes et futures entre l'industrie sidérurgique européenne et son environnement, avec pour objectifs principaux, l’amélioration de la prise de décision et l'élaboration de politiques industrielles en matière de durabilité et de circularité. La thèse contribue à l’émergence de propositions contribuant à façonner l'avenir de l'acier dans l’Union Européenne. L'industrie sidérurgique européenne est utilisée ici comme un cas d’école, visant à explorer les avantages potentiels pour l’économie circulaire et l’écologie industrielle, d’une intégration d’un outil (Analyse du Cycle de Vie – ACV) dans une méthodologie (Dynamique des Systèmes – SD). Un modèle modulaire pour l’industrie sidérurgique européenne a été construit et, pour 4 des 5 articles développés dans la thèse, 21 simulations ont été effectuées. 12 simulations ont permis d’identifier les contraintes potentielles et les avantages des stratégies de fin de vie; 5 d’évaluer les avantages et les inconvénients des différentes stratégies d’intégration de la chaîne d’approvisionnement (SCI) dans la filière européenne de l’acier; et 4 de traiter des interactions entre les dynamiques biophysiques et économiques sur le marché de l'acier. Le dernier article s’appuie sur une nouvelle méthodologie – les Cercles de Durabilité et le Métabolisme Urbain Durable – pour évaluer les défis et les contributions de l'acier dans le cadre de l’éco-fonctionnalité en milieu urbain. Les résultats ont montré que l’intégration de l’ACV dans les stratégies de développement durable permettait de reproduire assez fidèlement les résultats et les scénarios d’études scientifiques antérieures, tout en suggérant des apports méthodologiques relativement novateurs. Cette recherche opérationnelle est susceptible d'intéresser les managers et des chefs d’entreprises qui s’attachent aux questions d’efficience et de résilience de l’outil industriel, ainsi que les décideurs politiques qui souhaitent cerner les enjeux d’une pénurie de matières premières ou d’une politique de recyclage de l’acier à l’échelle européenne. D'après les résultats de chaque article, il a été observé que (a) le recyclage et la réutilisation pourraient générer des résultats intéressants à moyen et à long terme en matière de circularité, en abandonnant notamment les combustibles fossiles et en développant un tout nouveau marché autour des services de fin de vie; (b) différentes approches en matière de chaine logistique intégrée semblent être prometteuses d'un point de vue environnemental et stratégique; (c) six variables biophysiques clés peuvent avoir une incidence notoire sur les cours au comptant, les cours à terme, les marges d'EBITDA, l'utilisation des capacités de production, la distribution des dividendes et les coûts de fabrication de l'acier; et (d) la dynamique servicielle dans le cadre de l’éco-fonctionnalité peut apporter des avantages significatifs aux villes durables, tout en modifiant considérablement la structure de l’offre sur le marché de l’acier

Proceedings of the Spring Servitization Conference (SSC 2013):servitization in the multi-organisation enterprise

The increased data complexity and task interdependency associated with servitization represent significant barriers to its adoption. The outline of a business game is presented which demonstrates the increasing complexity of the management problem when moving through Base, Intermediate and Advanced levels of servitization. Linked data is proposed as an agile set of technologies, based on well established standards, for data exchange both in the game and more generally in supply chains

Using foresight futures and systems thinking to evaluate digitally enhanced advanced service concepts for a rolling stock company (ROSCO)

Purpose: This paper reports on a study in conjunction with a UK-based rolling stock leasing company (ROSCO). The aim was to generate and evaluate future operational concepts for digitally enhanced advanced services from the point of view of a ROSCO – one of many stakeholders (or actors) within a future wider mobility ecosystem.Design/Methodology/Approach: The research design followed the Generic Foresight Process Framework (Voros 2003). Desk-based research and horizon scanning analysis revealed technologies, mobility and transport trends, and other predictions towards 2060. A workshop was developed and participants were presented with a series of future scenarios and design fictions for end-to-end intermodal mobility and passenger carbon quotas. A future Mobility Servitization Systems Architecture was developed.Findings: Five future megatrends were identified; Decarbonisation, changing traveller needs, digitisation, mobility ecosystems and new business models in digital ecosystems. The ‘what-if’ activities revealed insights into alternate futures; revealing system of systems (SoS) actors, the role of a ROSCO, integrations, assumptions and operational constraints.Originality/Value: This research contributes to engineering and design methods for digitally enhanced advanced services, particularly for corporate strategic foresight in a dominant design industry. The Mobility Servitization Systems Architecture was seen to be a powerful model for ecosystem understanding.</div

A proposed model for servitization based collaboration in the UK Aerospace Defence industry

In many sectors customers are increasingly seeking service contracts rather than buying products. High tech capital equipment firms attracted by the potential revenue benefits are choosing to move from supplying product only to supplying product and services. This concept is known as ‘Servitization’. Through empirical evidence the academic literature has shown that businesses face challenges in undertaking the transformation from product to service provision and that organisational, cultural, commercial and operational challenges have the potential to erode the desired and expected benefits sought from such a transition. The research presented in this thesis investigates and identifies the features and challenges of servitization in the context of a complex engineering service provided by the UK Aerospace Defence industry. The research also explores the reported costs and front of mind costs for the provision of a complex engineering service. Particular attention is given to the problem of less than expected profitability during and post transformation to service. This research adopts a qualitative approach through the use of a single case study with multiple case examples of the complex engineering service. Findings identify a number of challenges associated with the transformation from product to service provision that include strategy, organisation and enterprise management, contracting, risk, culture and operations. Considering these findings holistically it is suggested that a paradigm shift needs to occur, changing both managers perspective and the business models employed if the firm is to provide a sustainable service offering. New ways of structuring and managing the enterprise to deliver the service value proposition will be required. This will include the development of performance management of all operations across the enterprise required as a minimum to ensure optimum performance of service delivery at lowest cost

Setting sail towards predictive maintenance:developing tools to conquer difficulties in the implementation of maintenance analytics

Unexpected downtime of equipment is disruptive in complex manufacturing supply chains and imposes high costs due to forgone productivity. Executives in asset-intensive industries therefore regard such unexpected failures of their physical assets as a primary operational risks to their business. Predictive maintenance (PdM) (including condition-based maintenance) can aid practitioners in preventing these unexpected failures and getting insight into current and future behaviour of their assets. However, the use of PdM in practice seems to lag behind recent technological advancements and our theoretical understanding. The current study therefore aims to further develop our understanding on the use and adoption of predictive maintenance and, based on these observations, develop tools to better support the practical application of predictive maintenance. This research is guided by the following research question: How can the practical application of predictive maintenance better be supported? To be able to answer this question, an explorative multiple-case study is conducted including fourteen cases from various industries in the Netherlands to study successful applications of predictive maintenance. The focus in this multiple-case study lays on both the technical and the organizational aspects of PdM, because the organizational application process of PdM seems overlooked by the academic literature. The multiple case study reveals that almost all organizations who applied PdM successfully have followed a costly trial and error process. This appears to be the result of the technical and organizational complexity of the application of PdM and the absence of effective theoretical guidance in: (i) selecting the most suitable techniques for PdM; (ii) identifying the most suitable candidates for PdM; and (iii) evaluating the added value of PdM. To conquer the three main identified problems and to assist practitioners in the implementation of PdM, three corresponding decision support tools – which can be used together – have been designed in the remainder of this dissertation. The three solutions are designed using a structured design science process. Therefore, after studying the problems in-depth to define design criteria and select design principles, the developed solutions are demonstrated in practice using case studies in various industries. Future research should be guided towards the refinement and testing of the provided methods

Ethiopia’s Investment Prospects: A Sectoral Overview*

Ethiopia is in the midst of a sustained growth surge that is becoming increasingly broadbased, building on major improvements in educational attainment, improved health outcomes, and infrastructure capacity in terms of access to power, transportation and telecommunications. The Government’s Growth and Transformation Plan sets ambitious targets for further improvements in these areas, together with significant reforms aiming to improve trade logistics, by rolling-out the authorized economic operator program across export-oriented industry parks and improving the main export corridor to Djibouti. This industrialization push coincides with global trends that provide Ethiopia an opportunity to integrate its economy into the modern “Made in the World” production system, including by attracting labor-intensive production, which is leaving China and other East Asian economies due to their rising wage rates. This paper considers Ethiopia’s prospects to succeed in this endeavor. It reviews overall economic management and performance indicators and provides a horizontal overview of the investment framework. It then summarizes the investment prospects in several major sectors of the economy, in light of Ethiopia’s emerging capacities and global developments: agriculture, mining, oil & gas, economic infrastructure, manufacturing, and selected services, including health and tourism. Keywords: Ethiopia, investment, growth and transformation pla

Organizing sustainable development

The role and meaning of sustainable development have been recognized in the scientific literature for decades. However, there has recently been a dynamic increase in interest in the subject, which results in numerous, in-depth scientific research and publications with an interdisciplinary dimension. This edited volume is a compendium of theoretical knowledge on sustainable development. The context analysed in the publication includes a multi-level and multi-aspect analysis starting from the historical and legal conditions, through elements of the macro level and the micro level, inside the organization. Organizing Sustainable Development offers a systematic and comprehensive theoretical analysis of sustainable development supplemented with practical examples, which will allow obtaining comprehensive knowledge about the meaning and its multi-context application in practice. It shows the latest state of knowledge on the topic and will be of interest to students at an advanced level, academics and reflective practitioners in the fields of sustainable development, management studies, organizational studies and corporate social responsibility