Measuring new product and service portfolio advantage

The current study introduces the concept of new product and service portfolio (NPSP) advantage by creating and validating a three-dimensional measurement method that reflects novelty, meaningfulness and superiority – the three characteristics of NPSP advantage. Based on industry-wide homogeneous generalizable quantitative data from 108 manufacturing companies, the results indicate that these three characteristics of NPSP – novelty, meaningfulness and superiority – are distinct characteristics that together constitute NPSP advantage. This paper contributes to the literature on new product development, as its findings suggest that when measuring the concept of NPSP advantage, the three-dimensional construct that includes the three aforementioned characteristics has a better fit to the data than the unidimensional structure. Because it considers both new products and services, the current study offers an integrated approach to measure the desired innovation process outcome (NPSP advantage). In this way, this paper bridges the research on new product development with that on new service development.fi=vertaisarvioitu|en=peerReviewed

Lean After Sales Service – An Opportunity for OEMs to Ensure Profits

Part 2: Knowledge-Based ServicesInternational audienceOriginal equipment manufacturers (OEM) have recently recognized that offering after sales services enables higher revenues and profits (for example additional services, spare parts or accessories business). For this reason, OEMs have decided to step up efforts to improve or offer additional after sales services in order to achieve competitive advantages. Moreover, offering after sales services combined with primary products is an appropriate instrument to improve customer satisfaction and loyalty. Due to the increasing competitive pressure in the after sales service sector, methods and instruments have to be identified to sustain a profitable business area. In branch of production, the use of lean production systems turned out as a suitable application to secure and improve competitiveness, to reduce waste in production and to realize sustainable profits. Therefore, in this paper a methodical approach to transfer lean production system (LPS) principles to customer service as well as a qualitative applicability of the principles will be described. For transferring LPS principle to customer service, the reference guideline “VDI 2870 – Lean production systems” published by The Association of German Engineers is used

Digital Servitization: The Next “Big Thing” in Manufacturing Industries

Part 8: Designing and Delivering Smart Services in the Digital AgeInternational audienceManufacturing firms increasingly produce and provide services along with their traditional physical products. This process, better known as servitization, is a mature theme in the literature, flourishing in recent years. Digital disruption is propelling manufacturers to move on towards digital transformation and deliver digital services. Prior research investigated the impact of servitization measured by the traditional services. However, the role of digital technologies in manufacturing is neglected. This paper intends to shed light on the impact of digital service portfolio antecedents on firm performance. Our analysis used the Serbian dataset of 240 manufacturing firms from the European Manufacturing Survey conducted in 2018. The empirical results show that, in manufacturing firms, digital services can significantly increase the turnover ratio. Results indicate that management in manufacturing companies should utilize digital services such as Web-based services for customized product design and Web-based offers for product utilization to maximize firm’s turnover ratio and upgrade current service business model

Meeting Triple Bottom Lines through Product Service Systems, Selling Purified Water Instead of Chemicals: An Extended Case Study

AbstractA Product-Service System (PSS) is an integrated product and service offering that delivers value in use. The purpose of this paper is to study the contribution of PSS to economic, social and environmental performance by changing the offering from product to product-service systems. The key attributes such as co-creation of value with customers, application of competences such as knowledge and skills on intangible resources are studied in depth in this case study. Authors have conducted a single-case study in order to achieve the aim of the paper. Analysis focuses on chemical supplier and the customer. Semi structured interviews were conducted to collect the primary data and supplementary data were used for theoretical triangulation (Jick, 1979; Yin, 2003; Baines et al., 2009). Deductive content analysis (Elo and Kyngäs, 2008) is conducted and findings were reported. By changing the business model of selling chemicals into selling purified water, the company has transformed from product focus to PSS focus. Both the customer and supplier were able to create value within and between systems. Customer acted as a co-creator of value. It has enhanced the triple bottom line by increasing the profit, reduced the environmental impact by reducing the chemical component and enhanced the employee morale and safety. This study creates the awareness about product service systems to enhance customer bonding, diminish competition and enhance triple bottom lines. This paper originates an empirical evidence of PSS in Sri Lanka and the economic, social and environmental benefits which can be derived thereby.Keywords: Product Service Systems, Triple Bottom Line, Sustainability, Servitization, Sri Lank