Johanna Wallin

Understanding product-service system innovation capabilities development for manufacturing companies

Purpose – Manufacturing companies are increasingly making efforts to combine products and services into integrated offerings. However, the companies’ success in such transformation is linked with the presence of structured routines and processes, which the authors conceptualize as productservice systems (PSS) innovation capabilities. The purpose of this paper is to address the important question of how manufacturing companies can systematically build PSS innovation capabilities and does its presence or absence significantly influence PSS innovation. Design/methodology/approach – This study is based on longitudinal data from an aerospace company, which acts both as an OEM providing through-life services for aircraft engines, as well as a developer of innovative subsystem technologies. Data has been collected over three years (2009-2012) and constitutes 40 in-depth explorative and semi-structured interviews with diverse respondents. For analysis of the data, the authors have used constant comparison technique leading to identification of three high-order categories. In addition, the authors gain from observations and secondary data which enable to achieve data triangulation and data validity. Findings – The results objectively depict an overview of how the case company developed PSS innovation capabilities, though progression of routines over three early PSS development stages. More specifically, the authors find evidence for development of formalized routines related to customer interaction and innovative organizational climate during need phase, cross-functionality, and network partnering during solution-seeking phase, and competence and business case development during solution development phase. As these routines become more structured within the case company, they forge a path for PSS innovation capabilities development. Originality/value – This study provides two distinctive contributions to emerging PSS literature. First, the authors propose and explain how PSS innovation capabilities are developed. Although prior studies acknowledge the importance of possessing specialized PSS innovation capabilities, limited studies have reported empirically how they are developed. Second, through adopting a longitudinal perspective, the authors reveal key routines and actions that drive PSS innovation during different development stages. To the knowledge, no prior study has combined insights from PSS literature and resource-based view to objectively explain capabilities development process.

Developing PSS concepts from traditional product sales situation : The use of business model canvas

In recent years there has been growing interest in utilizing a product-service system (PSS) approach when developing products and services in order to arrive at a business model focused on selling function or availability instead of physi-cal products. However, the complex nature of PSS development has left many manufacturers still struggling to arrive at PSS concepts out of their traditional product sales situation in early design phases. The purpose of this paper is to propose an approach using the Business Model Canvas which could help manufacturers in the transition towards PSS development by articulating key business elements in developing and analyzing PSS concepts evolving from their traditional product sales situation. The paper presents preliminary findings from the aerospace industry and discusses the evolution of key business elements for PSS concepts from traditional product sales situation using the Business Model Canvas. Finally, the potential benefits of using the Business Model Canvas in a PSS context are discussed.

BRIDGING THE GAP BETWEEN UNIVERSITY AND INDUSTRY: THREE MECHANISMS FOR INNOVATION EFFICIENCY

A key challenge for competence networking is the difficulty of contextual understanding between people from different organizations. Despite close collaboration, full insight into a company is difficult, although desirable, for university partners to achieve and vice versa. The case study described in this paper is of a company with long experience of university–industry collaboration. The paper reports on a designerly approach to overcome barriers of university–industry collaboration. The approach is combined with strategic, tactic and operational dimensions. It builds on three corresponding mechanisms: a tool to facilitate strategic understanding, workshops to facilitate tactical co-creation, and prototyping to facilitate operational ideation.

Measuring innovation capability - Assessing collaborative performance in product-service system innovation

This paper reports on a qualitative study, carried out at a Swedish aero engine manufacturer. The study was initiated to explore key indicators related to innovation capability in a Product-Service System (PSS) context. Developing PSS changes the dynamics of collaboration, since the offering of such systems usually involves a network of partners sharing the responsibility for a delivered function over a full lifecycle. In particular, this paper focuses on describing aspects related to external and internal collaboration, and it further discusses how to measure the company’s collaborative performance, taking into account both activity and effect measures.

Turning internal product knowledge into external service offers : building PSS capabilities

The transition from product development towards development of product-service systems (PSS) challenges manufacturing industry today. This paper is based on a case study of a company in the aerospace industry that turned their internal product knowledge into an external service offer, which challenged established structures of the product development process. The process and challenges of the capitalization of internal knowledge were documented as well as the capabilities needed. This case emphasizes the importance of collaboration between different areas of expertise and it also shows that PSS development enhances the need for engineers who are skilled in more than one area.