• Title/Summary/Keyword: Product Servitization

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Exploring Opportunities of IoT for Product-Service System Conceptualization and Implementation

  • Mohammad R. Basirati;Jorg Weking;Sebastian Hermes;Markus Bohm;Helmut Krcmar
    • Asia pacific journal of information systems
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    • v.29 no.3
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    • pp.524-546
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    • 2019
  • Product-service systems (PSS), integrating physical products and services, currently play a crucial role in sustainable economies. In addition to the highly competitive global economy, the emergence of new digital paradigms is supporting the shift toward servitization. Although the great potential of such paradigms is recognized by both practice and research, their implications for PSS are not yet clear. In particular, features of Internet of Things (IoT), such as total connectedness and ubiquity of smart sensors and actuators, provide various new opportunities for PSS. This study explores such opportunities by conducting structured literature review and 13 interviews. We organize the findings in two folds: First, we introduce four degrees of IoT involvement in PSS business models and elaborate the opportunities that they create for different types of PSS. Second, we present the key technologies and approaches that IoT provides concerning PSS lifecycle management.

Manufacturer's Strategy and Capability for Service Transition (제품에서 서비스로 전환을 위한 제조기업의 서비스역량과 전략)

  • Kwon, Suhn-Beom
    • Journal of Information Technology Services
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    • v.11 no.1
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    • pp.273-292
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    • 2012
  • Manufacturers have started to adopt service as their offering mix in order to overcome slow growth, declining profitability and commoditization in the pure product market. Several companies like IBM and GE have shown that services would be a new source of revenue and a steady growth. Service covers a wide spectrum from a simple add-on service like repair to complex outsourcing service. Service adoption is a challenge for manufacturers who have been accustomed to product making and selling. Making, proposing, delivering and evaluating services needs a different and new capabilities for manufacturers. And service transition is closely related with capabilities which make a transition with a less risk. In this paper, a taxonomy of efforts is developed which build on the service transition literatures and cases. We provide a phased service transition strategy for manufacturers and service capabilities needed at each phases.

A Study on User Satisfaction and Continuity Usage Intention in the Automotive Industry: Focusing on the Expectation Confirmation Model (자동차 산업에서의 사용자만족과 지속사용의도에 관한 연구: 기대일치모형을 중심으로)

  • Han, Sang In;Chang, Seog Ju
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.16 no.5
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    • pp.189-203
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    • 2021
  • Environmental changes, which are strongly requiring technological cooperation, such as technological development and strategic alliances according to industrial ecosystem change, have a significant impact on not only product quality but also services. Thus, there is a need for 'servitization' that can satisfy the needs of customers and the ecosystem of businesses through the convergence of manufacturing companies and services. This study uses the Expectation-Confirmation Model to examine the impact on user satisfaction and Continuance Usage Intention. Research(Study) was conducted on users who are using high-tech-based cars. For this, we used Expectation Confirmation(match expections for the user's pre-and post-use relationships), Perceived Ease, Perceived Usefulness, User Satisfaction and Habitual Use and using Continuance Usage Intention as a dependent variable. Their causation was examined with the spss 26.0 and smartpls 2.0 statistical programs. As implications of this study, Expectation Confirmation has been shown to have significant positive effects on Perceived Ease, Perceived Usefulness, User Satisfaction and Habitual Use. For this results, the expectations before and after the use of high-tech cars lead to improved daily lives convenience and(or) work efficiency, leading to user satisfaction and further Continuance Usage Intention. Motors consider it important to pursue the work improvements that consumers want and use it useful in daily lives in the production and sale of high-tech cars. It is expected that it will create natural habits for services that users are satisfied with, and that these habits will affect the continuous growth and understanding of the trend of change.

A Framework of the Convergent Service Development Process in the Public Sector : The Smart Transportation Card Service of Seoul City and the Call for Collaboration Case in Singapore (공공분야 융합 서비스 개발 Framework에 대한 연구 : 서울시 스마트교통카드 서비스와 싱가포르 CFC 사례를 중심으로)

  • Lee, Jin-Hui;Lee, Suke-Kyu
    • Journal of Information Technology Services
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    • v.12 no.2
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    • pp.387-410
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    • 2013
  • Due to the development of information technology, Convergence and Creative Economy became hot issues. For example, products become more intelligent and services are likely to be connected and integrated around core services or provided as bundle solution. Meanwhile products and services are integrated in the context of mutual supplementation, which leads to Servitization of Products and Productization of Services in many industries. Previous studies have addressed Convergence with different terms and definitions such as Convergent, Multicategory Multifunctional Product, Clouding Service, Bundle and so on from one perspective such as consumers, suppliers or technology according to a wide range of academic approaches. Thus, this study attempted to suggest the most typical convergence products released in the convergence environment and categorize those products. Furthermore, this study has pointed out the problems in the New Product Development Framework discussed in the studies on marketing by taking the situation of the public sector into account and then suggested "New Service Development Framework in the Public Sector" that are different from traditional e-Gov. approach basically and will enable the government to create public information service and provide them to enterprises or citizens. It also emphasized the importance of Business Conceptualization Stage in the framework; argued that there is a necessity of an integrative study from the perspective of technology on the basis of the approach from the perspective of marketing and Policy such as a study of consumer behaviors, design and marketing channel and Policy Integration for the development and dissipation; and furthermore suggested the cases-the development/Diffusion of Transportation Card Service in Seoul and CFC (Call for Collaboration) in Singapore-in order to verify the framework. There is a need to supplement New Service Development Framework so it is able to reflect the distinct characteristics of the public sector from the academic perspective and be used as practical guidelines for SI (System Integration) business to shift into IT Service business. Last but not the least, this study has suggested the limitations and the directions for the future studies.

A Study on the Interrelationship among Service Quality, Customer Satisfaction and Customer Loyalty by Distribution Channel, in the Dehumidifier Goods Industry (제습기산업의 유통경로별 서비스품질이 고객만족 및 고객충성에 미치는 상호관계에 대한 연구)

  • Kim, Kyusik;Ree, Sangbok
    • Journal of Korean Society for Quality Management
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    • v.42 no.4
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    • pp.665-684
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    • 2014
  • Purpose: The purpose of this study was to test and verify on the interrelationship among Service Quality, and Customer Satisfaction and Customer Loyalty in the Humidifier Goods industry. Especially, we study on the relative importance of each CS variables by distribution channel. Nowadays, most of manufacturing companies are proceeding the product servitization, which is combined service contents with product characteristics in the field of manufacturing industries. Methods: We surveyed humidifier purchaser about the some of CS variables and analyzed it using SPSS 21.0 and AMOS 21.0 as a statistical analysis tool. We use the frequency analysis, confirmatory factor analysis, multi-regression analysis and structural equation modeling analysis for our empirical study. Results: As the result of study, we find that Service Quality(SQ) influence Customer Satisfaction(CS) and CS influence Customer Loyalty(CL). Also, we verify that CS works mediate interaction on the effects between SQ and CL. And there are the significant relative effect of SQ to Customer Satisfaction in some of distribution channel. Conclusion: Finally, we make certain that the market size of the Humidifier goods industry will be increased rapidly. And the distribution channe l is more important to medium and small-sized enterprise. So, we have to pay attention to the study on the distribution channel of the Humidifier goods industry. And then, we expect more researches and studies on Service Quality and Customer Satisfaction in the field of manufacturing industries.

Exploratory Case Study for Key Successful Factors of Producy Service System (Product-Service System(PSS) 성공과 실패요인에 관한 탐색적 사례 연구)

  • Park, A-Rum;Jin, Dong-Su;Lee, Kyoung-Jun
    • Journal of Intelligence and Information Systems
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    • v.17 no.4
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    • pp.255-277
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    • 2011
  • Product Service System(PSS), which is an integrated combination of product and service, provides new value to customer and makes companies sustainable as well. The objective of this paper draws Critical Successful Factors(CSF) of PSS through multiple case study. First, we review various concepts and types in PSS and Platform business literature currently available on this topic. Second, after investigating various cases with the characteristics of PSS and platform business, we select four cases of 'iPod of Apple', 'Kindle of Amazon', 'Zune of Microsoft', and 'e-book reader of Sony'. Then, the four cases are categorized as successful and failed cases according to criteria of case selection and PSS classification. We consider two methodologies for the case selection, i.e., 'Strategies for the Selection of Samples and Cases' proposed by Bent(2006) and the seven case selection procedures proposed by Jason and John(2008). For case selection, 'Stratified sample and Paradigmatic cases' is adopted as one of several options for sampling. Then, we use the seven case selection procedures such as 'typical', 'diverse', 'extreme', 'deviant', 'influential', 'most-similar', and 'mostdifferent' and among them only three procedures of 'diverse', 'most?similar', and 'most-different' are applied for the case selection. For PSS classification, the eight PSS types, suggested by Tukker(2004), of 'product related', 'advice and consulancy', 'product lease', 'product renting/sharing', 'product pooling', 'activity management', 'pay per service unit', 'functional result' are utilized. We categorize the four selected cases as a product oriented group because the cases not only sell a product, but also offer service needed during the use phase of the product. Then, we analyze the four cases by using cross-case pattern that Eisenhardt(1991) suggested. Eisenhardt(1991) argued that three processes are required for avoiding reaching premature or even false conclusion. The fist step includes selecting categories of dimensions and finding within-group similarities coupled with intergroup difference. In the second process, pairs of cases are selected and listed. The second step forces researchers to find the subtle similarities and differences between cases. The third process is to divide the data by data source. The result of cross-case pattern indicates that the similarities of iPod and Kindle as successful cases are convenient user interface, successful plarform strategy, and rich contents. The differences between the successful cases are that, wheares iPod has been recognized as the culture code, Kindle has implemented a low price as its main strategy. Meanwhile, the similarities of Zune and PRS series as failed cases are lack of sufficient applications and contents. The differences between the failed cases are that, wheares Zune adopted an undifferentiated strategy, PRS series conducted high-price strategy. From the analysis of the cases, we generate three hypotheses. The first hypothesis assumes that a successful PSS system requires convenient user interface. The second hypothesis assumes that a successful PSS system requires a reciprocal(win/win) business model. The third hypothesis assumes that a successful PSS system requires sufficient quantities of applications and contents. To verify the hypotheses, we uses the cross-matching (or pattern matching) methodology. The methodology matches three key words (user interface, reciprocal business model, contents) of the hypotheses to the previous papers related to PSS, digital contents, and Information System (IS). Finally, this paper suggests the three implications from analyzed results. A successful PSS system needs to provide differentiated value for customers such as convenient user interface, e.g., the simple design of iTunes (iPod) and the provision of connection to Kindle Store without any charge. A successful PSS system also requires a mutually benefitable business model as Apple and Amazon implement a policy that provides a reasonable proft sharing for third party. A successful PSS system requires sufficient quantities of applications and contents.