Integrated Product-Service Systems
Gummesson (1995) was one of the first researchers to emphasize the fact that customers are not buying products any more but are rather buying offerings that are based on services which create an added value. The services offered need to solve real custome
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Integrated Product-Service Systems
Gummesson (1995) was one of the first researchers to emphasize the fact that customers are not buying products any more but are rather buying offerings that are based on services which create an added value. The services offered need to solve real customer problems in an efficient and cost-effective way. The value creation of the service should be perceived instantly and be transparent to customers for evaluation of the performance. The transition from manufacturer to service provider can be justified not only from the perspective of potential financial benefits.
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Types of Industrial Services
For machine-building companies, the range of services offered to the market can include a wide spectrum of offerings. In order to describe the possibilities, there are several ways to classify industrial services into categories. Edvardsson (1997) outlines eight types of industrial service offerings. Table 3.1 presents an overview of the types. Repair and maintenance are examples of traditional services offered to customers. These require technical knowledge of the product and can help customers to extend the operational life cycle of the product. Training is an example of the support needed to ramp up operations and at the same time help to ensure the performance of the physical product. Once the installed base of the products is increasing and operational products are reaching the maturity phase of the life cycle, retrofit services may be offered to existing customers. Retrofit services can be used to modernize competitors’ equipment to the customer. Process optimization requires skills related to actual operations rather than technical and manufacturing knowledge of the product. Service level agreements (SLA) can specify the offered service at each stage and condition. A high end SLA contract may include penalties and bonuses based on the performance delivered. Short-term rental generates flexibility and gives a financial component to service. Long-term rental has less flexibility but may provide a good financial solution packaged together with performance promise. © Springer International Publishing Switzerland 2017 P. Helo et al., Designing and Managing Industrial Product-Service Systems, SpringerBriefs in Operations Management, DOI 10.1007/978-3-319-40430-1_3
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Integrated Product-Service Systems
Table 3.1 Types of industrial service offerings Repair services
Operations training Retrofit services Process optimization Safety inspection SLA High-end SLA Short-term rental Long-term rental
Restoring capital equipment to sound condition after damage. Repair services comprise of corrective and preventive. Efficient information and communication technology are crucial to minimizing the effort needed to perform this type of service The training required before users have obtained the necessary skills to operate the equipment Replacing or adding of one or more hardware and/or software components to improve the overall performance or to minimize life cycle costs Offering technical expertis
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