How to measure quality of Product- Service Systems

Abstract

There is an overall trend and interest amongst companies to increase their competitive advantage and diversify their business strategy by servitization and offering their products and services as integrated systems. There is extensive research on the benefits and risks related to the concept of servitization and Product-service System (PSS), but there is little research on how to measure the quality and success when operationalizing them. The conceptual model presented in this thesis combines different concepts that together create a way to assess the quality of a PSS. The model sheds light on the gap between the more traditional way of measuring quality and what needs to be measured to capture the quality of the customer valuecreating processes of a PSS. The model is based on the concept of value-in-use and it helps capture the customer perspective by identifying critical valuecreating activities connected to the provider, customer, and joint spheres. It can also be used to define both the current and target position on the servitization continuum, as well as what type of PSS is being offered. In addition, the model also helps identify both internal and external challenges when measuring the quality of a PSS. Corporate image and customer expectations are also captured, both impacting the way the quality of a PSS is perceived from a customers point of view. Together, these findings form a basis for defining what performance indicators can be used to capture the quality of a specific PSS. The model is a continuous evaluation process and can be used as a tool for continuous improvements to ensure high value-in-use, which in turn will generate higher value-in-exchange, improved competitive advantage, and overall PSS success.