ServDes 2016

1. GIULIA TESO AND ANDREW T. WALTERS
Service implementation: a framework to
assess readiness of manufacturing SMEs
SERVDES.16 COPENHAGEN - MAY, 25TH 2016

2. CONTEXT
Why start a servitization journey?
What is the link between service design and
manufacturing companies?
Why do manufacturing companies struggle to
embed services in their offering?

3. DATA ANALYSIS
The readiness framework and its dimensions
#1 Effectiveness
Past achievements and differentiators
#2 Experience
Codification of knowledge
#3 Service history
Configuration of the offering
#5 Culture and development
Working and learning environment
#9 Awareness
Service value and
customer-oriented approach
#7 Risk propensity
Attitude towards novelty
# 4 External engagement
Degree of openness with actors
#8 Communication
Information flow
#6 Creativity
Sources of innovation

4. DATA ANALYSIS
What is the readiness framework purpose?
It’s a self-assessment tool:
• To sense the opportunities for companies to undertake a
servitization journey
• To frame the challenges at organisational level
• To notice the alignment between strategic and
operational level
• To provide guidance on the dimensions to extend

5. LITERATURE REVIEW
How I framed the past research
Manufacturers
vs. Service
Providers
Transition
from Products
to Services
Heterogeneity
amongst
companies
Lack of previous research on servitization on
small to medium sized companies (SMEs)
Lack of studies on manufacturing
from the service design discipline
Lack of support for SMEs
in embracing services

6. DATA ANALYSIS
The origins of the readiness framework
Stage 1:
Product-oriented
Stage 2:
Use-oriented
Stage 3:
Result-oriented
Stage 0:
Services not
considered as
part of the
offering
Adapted from: TUKKER, A. 2004. Eight types of product–service
system: eight ways to sustainability? Experiences from
SusProNet. Business Strategy and the Environment, 13, 246-260.
Source: Danish Design Centre (DDC),
Design Ladder, 2003
Degree of
servitization

7. LITERATURE REVIEW
How I framed the current research
1. What is the willingness and capability of manufacturing
SMEs for the development of services?
2. Can SMEs get a positive outcome from deploying service
design thinking?
3. How can SMEs recognise their readiness for service design
approaches?

8. DATA COLLECTION
Company engagement
Company Role Topic discussed Length
Company A -
Ventilation
systems
Marketing Director
Operations Director
Introduction Semi-structured interview
Follow-up Semi-structured interview
Readiness framework (9 dimensions)
Readiness framework (9 dimensions)
4:47:00
Company B -
Electrochemical
water treatment
Managing Director and
Operations Director
Technical Manager
Engineer
Introduction Semi-structured interview
Readiness framework (9 dimensions)
Readiness framework (9 dimensions)
3:51:04
Company C -
Special purpose
machines and
automation
Managing Director
Workshop supervisor
Introduction Semi-structured interview
Readiness framework (9 dimensions)
Readiness framework (9 dimensions)
3:58:32
TOTAL recordings 12:36:36

9. DATA ANALYSIS
How I used the qualitative data
Identity and
legacy on
making
Service
awareness
Service
design
making‘Service design is not only
designing a new service’
‘Manufacturing is not just
making one thing in one place’

10. PRELIMINARY RESULTS
What have we learnt?
BOARD LEVEL SHOP FLOOR LEVEL
Self-reflection tool to understand the
meaning of services and how they relate to
their offering through their past and current
examples
Medium and long-term vision with a
practical approach and involvement to the
day-to-day activities
Focus on creating and maintaining a
relationship with customers especially at
the outset
Focus on growth of the company as driver
for the future
Interest in knowing the shop floor point of
view of the firm
Managing Director as a leader, a source
of inspiration, ideas and change
Strong personal motivation to work in a
small company (task diversification and
skills development; seeing a project from
start to finish; feeling like having given
them the opportunity)
The customers’ involvement at the
early stages positively affects the
outcome of the solution offered
Noticing the improvement of the
working conditions (e.g. changes in the
workshop in terms of heating, cleanliness
and tidiness)

11. 1.0
2.0
3.0
4.0
5.0
DATA ANALYSIS
What to do next?
#1 Effectiveness
Past achievements and differentiators
#2 Experience
Codification of knowledge
#3 Service history
Configuration of the offering
#5 Culture and development
Working and learning environment
#9 Awareness
Service value and
customer-oriented approach
#7 Risk propensity
Attitude towards novelty
# 4 External engagement
Degree of openness with actors
#8 Communication
Information flow
#6 Creativity
Sources of innovation

12. Authors
GIULIA TESO
PHD STUDENT
+ 44 (0) 029 2020 5538
giteso@pdronline.co.uk
ANDREW T. WALTERS
PROFESSOR
+ 44 (0) 029 2041 6786
atwalters@pdronline.co.uk