• Korea Science and Art Forum
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• v.19
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• pp.259-267
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• 2015

Product-Service Systems (PSS) has drawn significant attention since it can effectively address diverse values of consumers by integrating products and services. PSS has been defined as a system of products, services, supporting networks and infrastructure that is designed to satisfy customer needs and to generate values. Manufacturing companies can accomplish business innovation by devising new service elements and providing PSSs starting from their products. Such new efforts are called manufacturing servitization. With analysis of the company's business contexts, diverse strategies could be set for servitization. Services could be developed so that their product functions can be supported. On the other hand, new services could be devised to drive active emotional values of their customers in a broadly related manner with their products. In this way, different servitization strategies in service space could be employed. In this paper, the product-service integration spaces for comparison of product-service systems in manufacturing servitization is briefly sketched. Various issue spaces, termed dimensions, would be used including service space, customer space, value space and business model space. Diverse PSS cases, including well-known PSSs and brand new PSSs, will be classified and compared to demonstrate the product-service integration spaces.

• Journal of Service Research and Studies
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• v.1 no.1
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• pp.1-27
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• 2011

In this research, we study on the servitization of manufacturing firms. We review literature on the servitization based on business ecosystem and internalization with extended servitization framework. We develop and suggest a conceptual framework to understand the servitization. This conceptual framework includes four parts: service competitive strategy(Porter Michael, 1980), product-service-knowledge system(PSKS), value chain, and servitization configuration. To confirm the applicability of this model, six cases are employed.

• Korea Science and Art Forum
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• v.20
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• pp.159-171
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• 2015

Service elements are added to the product to improve the company it its sales and innovation. The servitization process could take many different routes reflecting various properties of the manufacturing firm and its business contexts. Product-service systems (PSS) design method developed at Sungkyunkwan Universty, Service Design Institute, has been applied to a small furniture manufacturing company to demonstrate the utility of the method and to devise improvements. First, the business context of the company has been analyzed and key values have been identified. A co-creative session has been conducted to develop initial service concepts to drive those key values. The diverse positioning of those service concepts on the scale of service supporting product and service support customer is then developed to plan servitization phases. The specific service concepts are about company-customer relationship building as well as customization and personalization in this case. Initial service concepts are detailed with service blueprint so that prototyping and customer experience evaluation can be done. Business models in different servitization phases are designed. Further prototyping and customer experience evaluation has been done with business strategy improvements. In this paper, the proudct-service systems design method has been reviewed and the specific and real processes of the servitization using design will be described with discussion on the improvement of the method and the enhancement of the business.

• Journal of Information Technology Services
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• v.15 no.4
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• pp.111-123
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• 2016

The purpose if this study was to find and investigate effective mediation factors influencing performance of servitization through servitization acceptance activities by means of empirical results. According to the previous researches, two main mediation factors which were related with servitization competencies such as ICT competency of servitization and competency of servitization process were distinguished from lots of competencies which are relying on servitization process. Using a 373 sample data investigated from CEOs, directors and managers of small and medium sized firms in Korea, the structured mediation model was proposed. The measurement for the each variable was accepted for this study when the respondents were revealed to understand the servitization concepts which explained especially company's business moving towards the service specific gravity from selling existing products. The measurement for the each variable reflected that respondents were participating in any sort of servitization type or had intension to be involved with any servitization categories. The mediation hypotheses were tested in the way of analytical measures with the result of strong reliability. According to analysis, two mediators showed positive mediation role and statistically adopted between servitization acceptance activities and servitization performance in the 99% significant level. We confirmed that ICT competency of servitization and competency of servitization process were in the role of positive mediation between servitization acceptance activities and performance of servitization. The total of indirect effects were 0.2546 to support each mediation hypotheses. Tested two mediators were not on the same level. The most affecting mediation element on servitization performance was appeared as competency of servitization process. With the result of this study, we expect that the small and medium sized companies might have servitization business strategies including proper service competencies and mediators through acceptance activities to obtain suitable performance. According to the analysis, Companies which consider product-servitization need to set strategies to reinforce above two competencies.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.42 no.1
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• pp.21-32
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• 2019

The flow of the $4^{th}$ Industrial Revolution calls for the innovation of the traditional business models of the manufacturers. Servitization is a corporate strategy to respond to changes in the business environment. These days, the value that the market demands can be created on the basis of the product-service integration. Thus the manufacturers must pursue the fundamental innovation of the current strategy and business models. It is necessary to create common values with customers through providing product-service integrated offerings beyond the development, production, and delivery. The purpose of this study is to develop the evaluation indicators for selecting suppliers when the manufacturer who offers the value of product-service integration needs to obtain the resources from outside. The case company in this study is the manufacture firm conducting the retail IoT business as a new business. The Delphi method is used to develop the evaluation indicators for selecting suppliers. This study suggests the academic implications providing the perspective of Servitizaiton by using Delphi method, and the practical implications applying the creating value method of Servitization by collecting the opinions from both value providers and value consumers in the process of developing the evaluation indicators.

• The Journal of the Convergence on Culture Technology
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• v.6 no.4
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• pp.15-20
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• 2020

A manufacturing industry has secured its competitiveness through cost reduction, research for new products, development of manufacturing technology traditionally. However, many manufacturers are being required of innovative efforts for business sustainability by emergence of new technology and industry owing to fast technology development and convergence among technologies and industries. Continuous growth can not be expected with the way of simple manufacturing and sales under the 4^th industrial revolution era. Separation of service from product is getting more vague in some specific area and a service provider is often offering its own product together. Innovation destroying manufacturing value chain with servitization can only create the new value. Basic concept of servitization, paradigm change and future prospect of manufacturing industries suffering from the 4^th industrial revolution will be analyzed in this paper. Also, the strategy, application and methodology for servitization required in the convergence period will be researched.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.42 no.2
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• pp.49-61
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• 2019

As the technological gap amongst manufacturers decreases, the life cycle of products has shortened, and competition accelerates due to the development of technology, incumbent manufacturing companies face growth limitations. In order to overcome such business issues, manufacturing companies are increasingly interested in changes in business models and innovations, especially in the direction of providing services where they can maintain the competitive advantage of their products. In such context, this empirical study examines managerial leadership, differentiation strategies, and products and services pricing as 'servitization factors', which can be driving forces for moving into a new era of growth for Korean SMEs, focusing on the mediating effects of servitization competency. The results are as follows : First, it was confirmed that executive leadership, differentiation strategy, and information & communication technology capability have a direct effect on service sales. Second, the process competency, partnership competency, and ICT competency, which are presented as the service competence of SMEs, were found to play an important role in inducing service sales in managerial leadership, differentiation strategy, product and services pricing. It also emphasized the role of the public policy such as helping to foster SMEs as key partners in the expansion of social facilities and establishing platforms through ICT and data utilization for the convergence of manufacturing services.

• Korea Science and Art Forum
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• v.20
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• pp.135-146
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• 2015

The purpose of this research is to highlight the importance of customer experience relating to servitization of manufacturing and to develop an index to analyze customer experience management. It occurred that customer experience management analysis should perform in diverse dimensions to get higher customer satisfaction. Following to this idea, new idex is designed : CEMC(Customer Experience Management Competency scale). CEMC includes three parties which are internal expert, external expert and customer, as evaluators of the appraisal. Each evaluator participates in the inspection about customer experience management through a questionnaire which composed four sections : Product and service, Business process, Culture and Asset. Researchers apply this index to one small manufacturing business and analyze the state of customer experience management. The result would be a reference for building strategy and align inside organization.

• STI Policy Review
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• v.3 no.2
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• pp.111-129
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• 2012

The integration of products and services is being expanded in both manufacturing and service companies such as in Apple's iPod & iTunes, Amazon's Kindle, and Hyundai Motor Company's Mozen. This phenomenon has recently accelerated due to multiple factors including market change, lessening of differences in quality of products or services, the paradigm of participation and sharing, and deindustrialization and evolution toward becoming a service economy. The objective of this paper is to investigate and analyze the status and characteristics of integration of products and services in Korean firms and to suggest policy directions promoting this integration. Towards this purpose, income statements from the Korea Listed Companies Association (KLCA) database of companies listed on the Korea Stock Exchange are analyzed regarding the servitization of manufacturing firms as well as the productization of service firms. In addition, this research investigates the Korean Innovation Survey 2011 database for the service sector and 2010 database for the manufacturing sector in order to evaluate R&D activity in each. In the manufacturing sector, the average ratio of service sales (servitization) was low at 0.208, with bias in the level and distribution of ratios associated with the manufacturing sector. 18 out of a total of 23 sectors (78%) have low servitization, showing there's a long way to go for servitization in the Korean manufacturing sector. In the service sector, the average ratio of product sales (productization) was 9.53%, which is relatively high compared to that of the manufacturing sector. However, the distribution of ratios is also biased, as with the manufacturing sector. Based on this analysis, policy directions are proposed in terms of 1) R&D, 2) concept boost, 3) R&D result spread, 4) statistics, 5) infrastructure and 6) green growth.

• The Journal of Society for e-Business Studies
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• v.16 no.1
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• pp.117-131
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• 2011

Currently many companies have realized that producing efficient product does not guarantee the market differentiation. Realizing the problem, those companies are actively pursuing the servitization strategy. However complexities in selecting the right service areas among many choices along with in developing service strategies and organizational structures remain unsolved to many manufacturing companies. This paper is about an exploratory study in which, through in-depth case analysis, we observed how a manufacturing company successfully managed to transform to the service company. Through this study, we have found that successful transformation needs to resolve many conflicting issues such as channels among existing and new sales front, organizational restructuring due to conflicting in evaluation and human resource requirements required for responding to customers in the field. This 'Hansam' case study provides managers with some guidelines as to how to transform to the service company.