Tim C. McAloone

Service-Oriented Strategies for Manufacturing Firms

This chapter establishes PSS (Product/Service-Systems) approaches in the context of manufacturing firms and their existing product-oriented business. PSS can be seen as a strategy for manufacturing firms to gain competitive advantage in the market, but what market conditions and organisational factors (e.g., structure, processes, capabilities, measurement and reward systems, people and competencies and culture) support service orientation? The development of PSS is not just a task of initiating a service-oriented development project, but requires careful coordination with business units, customers and partners in business planning and strategy to reap the full benefits. Finally, a path to how manufacturers can make the change from product to service orientation is traced.

Timing and Targeting of PSS Methods and Tools: An Empirical Study amongst Academic Contributors

The emergence of product/service-systems has meant that development methods for such systems have emerged from academia. This paper investigates existing methods that are aimed at developing product/service-systems. Two aspects are determined for each examined method. The first aspect that has been surveyed is when a given method is meant to be used in the development of a product/service-system. This aspect has been determined through a qualitative assessment of each method. The second aspect surveyed is which persons in an organisation who are seen as the main drivers in the use of the methods. To gain this insight a questionnaire for each method has been conducted with the authors of the methods as participants. The main finding indicates that current PSS methods cannot thoroughly support the development of product/service-systems as their specificity is too low and that the methods need strong intra-organisational collaboration or even roles that do not yet exist.

From product to service orientation in the maritime equipment industry - a case study

In the shipping industry, operational performance of ships and their equipment is crucial to business. Suppliers of machinery and equipment are aware of this situation and see business development potential in setting up service systems that are dedicated to ensuring the performance of their products in operation. In this paper we present a case study of a shipping equipment manufacturer that is currently shifting business focus from manufacturing towards services delivery. Using a modelling scheme to differentiate and categorise different development tasks within the frame of business development towards service oriented business, the case delivers insights into the broader context and product related parameters influencing the options and requirements for service system development.

From Ecodesign to Sustainable Product/Service-Systems: A Journey Through Research Contributions over Recent Decades

Corporate approaches towards sustainability integration into product development have significantly evolved since the early 1990s. Ecodesign, defined as the integration of environmental issues into product development, arose in the 1990s as a key concept for the enhancement of products’ environmental performance. An intense development of ecodesign methods and tools could be observed in the 1990–2010 period, leading to successful pilot cases in industry, in which environmental gains were demonstrated. In the 2010s, the need for a systems perspective to solve the environmental crisis has been highlighted, and the concept of product/service-systems started to gain momentum due to the high potential for enhanced environmental performance and improved competitiveness, by means of new business models and dematerialization. Recently, a transition towards Circular Economy and the integration of social innovation into sustainability initiatives can be observed, which leads to strategic and holistic sustainability considerations in the design of complex systems. In this chapter, the evolution of sustainability concepts and their integration into product development is presented and exemplified in three periods: 1990–2010; 2010–2020 and 2020–2030. While the first two periods present the actual development of the field, the last period represents the evaluation and projection of the trends developed by the authors. By analysing the three periods, the authors aim to discuss the journey from ecodesign to sustainable product/service-systems over the last decades, experienced by academia and practitioners, and to highlight their views on how the field is going to develop over the next 10 years.

Product/Service‐Systems for a Circular Economy: The Route to Decoupling Economic Growth from Resource Consumption?

Product/service‐systems (PSS) that focus on selling service and performance instead of products are often mentioned as means to realize a circular economy (CE), in which economic growth is decoupled from resource consumption. However, a PSS is no implicit guarantee for a CE, and CE strategies do not necessarily lead to decoupling economic growth from resource consumption in absolute terms. Absolute resource decoupling only occurs when the resource use declines, irrespective of the growth rate of the economic driver. In this forum paper, we propose a two‐step framework that aims to support analyses of PSS and their potential to lead to absolute resource decoupling. In the first step, we present four PSS enablers of relative resource reduction that qualify as CE strategies. In the second step, three subsequent requirements need to be met, in order to successfully achieve absolute resource decoupling. Conditions and limitations for this accomplishment are discussed. Danish textile cases are used to exemplify the framework elements and its application. We expect that the framework will challenge the debate on the necessary conditions for CE strategies to ensure absolute resource decoupling.

A Scandinavian Model of Innovative Product Development

The educational systems in the small Scandinavian countries are open to experiments and new education programmes. This paper presents such an initiative from Denmark, showing new interpretations of industrial needs, research insights, educational ideas and identification of core innovative competencies. We reflect on our efforts to produce a new type of design professionalism, pointing to new roles and identities for the professionalism of synthesis and innovation. Finally, we round up by articulating what we see as the future pattern of product development, which should be supported already today in our education programmes.

Economic and Environmental Impact Trade-Offs Related to In-Water Hull Cleanings of Merchant Vessels

Merchant vessels are equipped with antifouling systems to prevent accumulation of marine organisms on the hull—a phenomenon known as fouling. In many cases, however, fouling accumulates and in‐water hull cleaning is required. Hull cleanings are part of a hull management scheme, and although they are an established practice, their associated environmental and economic trade‐offs and conflicts have remained largely unexplored. The purpose of this article is to quantitatively assess both economic and environmental impacts of hull management schemes on the operation of tanker vessels. After identifying induced and avoided costs and environmental impacts from the hull management system, we used both temporally and spatially distributed models to capture the degradation of the antifouling system as well as the global sailing profile of the vessels. Last, we analyzed how each of the modeled impacts varied with the frequency of hull cleanings within the hull management scheme. Our analysis revealed a convex relationship between the frequency of hull cleanings and fuel savings. The higher the frequency of hull cleanings, the less fuel savings can be achieved per cleaning. In terms of costs, from some point on the costs of the service are likely to offset the savings—especially if fuel prices are low. In regards to climate change, avoided emissions due to fuel savings are likely to outweigh the limited impacts from the service itself. Last, while ecosystem impacts from marine, terrestrial, and freshwater eco‐toxicity are likely to increase from hull cleanings, they are subject to high uncertainties.

Building an Ontology of Product/Service-Systems: Using a Maritime Case Study to Elicit Classifications and Characteristics

In recent years, the innovation strategy and development process entitled Product/Service-Systems (PSS), has attracted considerable attention from the research and industrial communities. The many contributions have come from various academic and professional viewpoints, which despite providing a rich view of PSS as a strategy, also leaves some confusion as to what actually constitutes a PSS. The definition of a PSS ontology could provide the basis for a more systematic knowledge gathering within the field and facilitate the application of integrated solutions within the industry. Ontologies provide an effective tool for a knowledge management process, due to their semantic capabilities, interoperability and extendibility. A PSS ontology for domain conceptualisation is proposed that captures the underlying end-user value and relates to existing PSS offerings. The PSS ontology is subsequently integrated into an ontology for the maritime sector, in order to allow for the identification of the PSS implementation opportunities within the industry. A maritime ontology can help the industry to document and reuse tacit knowledge while facilitating the implementation and value assessment of PSS solutions.

Deciding on PSS: A Framework for PSS Strategies

Product/Service-Systems (PSS) are a strategic approach wherein the value proposition covers the performance of a system throughout the whole life cycle. Many industrial companies are challenged on many levels in the transition process towards a PSS oriented approach. Much of the literature has until now focused on PSS from a design object perspective, and less focus has been on how the business model of the company must be designed simultaneously with the offering, covering topics as organisational restructuring, value chain collaboration plus a change management focus. This paper presents a PSS strategy topic matrix, as a boundary object for the company, aimed at creating a shared understanding of important factors in the organisation while evaluating, developing, implementing and operating a PSS strategy. This is done through an empirical foundation of twelve companies representing a whole branch industry, together with three cases of industrial best-practice.

Collaborative Product/Service-Systems – On Conceptualisation of PSS Offerings and Business Nets

Collaborative PSS development and operation, where multiple stakeholders are involved, is an emerging research area. This articles looks at the intra and inter-organisational company considerations in the industry case of company collaboration in the maritime branch. Initial steps are taken towards a framework that aligns service strategies and their unique value proposition with a set of business nets that seeks lights on the value-logic and management mechanisms to design and control each network.