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The servitization of manufacturing


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Presentation of a literature review on servitization and description of its structure.

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The servitization of manufacturing

  1. 1. The servitization of manufacturing A review of literature and reflection on future challenges T.S. Baines, H.W. Lightfoot, O. Benedettini and J.M.Kay Cranfield University, Cranfield, UK Desirée Suárez Santana
  2. 2. Index1. Abstract2. Introduction3. Research programme4. Analysis of the literature5. Key findings6. Conclusions and implications7. References8. Personal evaluation of the paper Desirée Suárez Santana
  3. 3. 1. Abstract Desirée Suárez Santana
  4. 4. 2. IntroductionDefinition of servitization What?(Vandermerwe and Rada, 1988) Who?Traditional manufacturing firms moving to servitization  Where? To catchJustification of the research  Why? the reader’sRelated topics of research e.g.: PSS attentionShort summary of the methodology How?Conclusion of the introduction Desirée Suárez Santana
  5. 5. 3. Research programme3.1. Aim, scope and questions to guide research3.2. Search strategy, results and analysis Desirée Suárez Santana
  6. 6. 3.1. Aim, scope and questions to guide researchPurpose of this review IDENTIFY, INTERPRET AND SUMMARISE THE LITERATURE CURRENTLY AVAILABLE ON SERVITIZATIONMost relevant publications in this review:Vandermerwe and Rada (1988)  concept of servitizationWise and Baumgartner (1999) traditional manufacturing toproduct-related services Desirée Suárez Santana
  7. 7. 3.1. Aim, scope and questions to guide researchFormulated questions for guiding the research: What? How? Where? Who? Why? Desirée Suárez Santana
  8. 8. 3.2. Search strategy, results and analysis1) - Identification of relevant data sources - Selection of time frame - Keywords 150 articles, reports and books Desirée Suárez Santana
  9. 9. 3.2. Search strategy, results and analysis2) Eliminate duplicate results 49 documents3) Check if the titles are relevant to this work4) Check references: the list increased to 58 publications5) Read the abstracts of the selected articles and, if they are relevant, read the whole text Desirée Suárez Santana
  10. 10. 3.2. Search strategy, results and analysisAnalysis supported by mind-mapping techniques inwhich the principal ideas and contributions areestablished.Example of amindmap: Desirée Suárez Santana
  11. 11. 4. Analysis of the literatureWide range of research papers on servitization since1988Papers reviewed: 40% from the USA, 20% from theUK, 15% from Switzerland and 5% from WesternEuropeDifferent topics covered: divided into differentgroups according to their corresponding themesCase studies: Inductive and deductive Desirée Suárez Santana
  12. 12. 4. Analysis of the literature Desirée Suárez Santana
  13. 13. 5. Key findings5.1. Defining “servitization”5.2. Evolution of servitization5.3. Features of servitization5.4. Drivers of servitization5.5. Challenges in the adoption of servitization5.6. Industrial examples of servitization adoption5.7. Previous research aiding in the adoption of servitization5.8. Future research challenges for servitization Desirée Suárez Santana
  14. 14. 5. 1. Defining “servitization”“Innovation of an organisations capabilities andprocesses to better create mutual value through a shiftfrom selling product to selling PSS (product-servicesystem).” Desirée Suárez Santana
  15. 15. 5. 2. Evolution of servitization- Increasing number of papers from the USA and Western Europe- Principally in business and managerial publications- Authors tend to be from operations, services and business fields Desirée Suárez Santana
  16. 16. 5. 3. Features of servitization- Servitization positioned on a product-service continuum ranging from products with services as an “add-on”, to services with tangible goods as an “add- on” .- Customer centric strategy to fulfil his/her current needs and requirements. Desirée Suárez Santana
  17. 17. 5. 4. Drivers of servitization- Financial drivers e.g.: revenue stream, profit margin- Strategic drivers e.g.: competitive opportunities and advantages- Marketing drivers e.g.: customer relationships, product differentiation Desirée Suárez Santana
  18. 18. 5. 5. Challenges in the adoption of servitizationServitization presents challenges for:- service design,- organisation strategy and- organisation transformation. Desirée Suárez Santana
  19. 19. 5.6. Industrial examples of servitization adoption- Large companies whose outputs are high-value capitalequipment.Examples: Alston (train and ship manufacturing), Rolls-Royce (car manufacturing) Desirée Suárez Santana
  20. 20. 5.7. Previous research aiding in the adoption of servitization- Lack of guidance, tools or techniques that might helpcompanies to adopt and successfully implementservitization. Desirée Suárez Santana
  21. 21. 5.8. Future research challenges for servitization- Service design- Organisational strategy- Organisational transformation Desirée Suárez Santana
  22. 22. 6. Conclusions and implications 58 papers directly related to “servitization”: 8 key findings Definition Authors mainly from operations, services and business fields Extremely close relationship between servitization and PSS Servitization examples Very little literature for practitioners Desirée Suárez Santana
  23. 23. 6. Conclusions and implications Still significant challenges that have to be faced Effectiveness and efficiency: manufacturers need to know how their customers perceive and value their services One community of academicsContributions in this field need to be grouped togetherin one document review Desirée Suárez Santana
  24. 24. 7. References
  25. 25. 8. Personal evaluation of the paper Well-structured Easy to follow (to read) Interesting and, therefore, entertaining reading material Complete bibliography/ database for papers related to the topic Desirée Suárez Santana
  26. 26. Thank you for your attention Desirée Suárez Santana