From product provision to advanced service solutions: challengesandenablersinservitization depending on type of Product-Service Syste

Examensarbete för masterexamen

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Type: Examensarbete för masterexamen
Master Thesis
Title: From product provision to advanced service solutions: challengesandenablersinservitization depending on type of Product-Service Syste
Authors: Hammar, Patric
Andreas, Nygårds
Abstract: To avoid the commodization trap and build a long-term competitive advantage an increasing number of companies include services in their offerings. However, for manufacturing firms advancing towards selling service solutions is challenging. The topic of servitization has generated a large amount of research regarding challenges and corresponding enablers that servitizing companies are faced with. Yet, limited research has tried to categorize these challenges into different Product-Service Systems (PSS). This master thesis aims at identifying which challenges a servitizing company is faced with, depending on the type of Product-Service System that is offered. Moreover, the enablers for deploying a servitization strategy are examined. This is done by analyzing the existing literature within the field and conducting an empirical study based on interviews with six embedded case companies. Our findings suggest that the challenges companies are faced with when servitizingaredependentonthePSSclassification. Identifiedchallengesfromtheempirical studyisclusteredintofiveclusters;Culture,Servicedevelopment,InternetofThings, Business model and Sales process. Each challenge is analyzed and individually categorized into their corresponding PSS category. It is shown that cultural challenges are important for all companies independently on the PSS type, while service development and IoT are most significant for PoPSS-companies. Furthermore, it is suggestedthatbusinessmodelaswellassalesprocesschallengesaremostsignificant for UoPSS- and RoPSS-companies. Corresponding enablers to the challenges are identified. Firstly, internal marketing of servitization and education of employees can overcome the cultural challenge. Secondly, it is suggested that a well-defined service development process and service modularity can counteract the challenges related to service development. Thirdly, updating IoT systems continuously, developing IoT standards and partnerships can help overcoming IoT challenges. Fourthly, suggested enablers to overcome the challenges connected to business model is to develop new technical capabilities, introduce new pricing algorithms and methods and increased collaboration between departments. Lastly, education of service sales force, acquiring new external service competence,targetingcustomercontactshigherupinthehierarchy,increasingcommunication to customers and educating customers can counteract challenges related to sales process. Keywords: servitization, servitization enablers, servitization challenges, ProductService
Keywords: Samhällsbyggnadsteknik;Civil Engineering
Issue Date: 2018
Publisher: Chalmers tekniska högskola / Institutionen för teknikens ekonomi och organisation
Chalmers University of Technology / Department of Technology Management and Economics
Collection:Examensarbeten för masterexamen // Master Theses

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