Towards a methodology to engineer industrial product-service system - Evidence from power and automation industry

Manufacturing companies whose products have become increasingly commoditized are currently striving to identify innovative value propositions allowing them to re-position themselves in the market. This is gradually leading to a business shift from delivering traditional transaction-based, product-centric offering to the provision of integrated product-service systems (PSS). However, the number of companies failing in successfully pursue such a transition is still increasing. Consequently, Service Engineering (SE), a discipline concerned with the systematic development and design of services and product-services, is gaining particular interest in both the scientific and practitioner communities. This paper contributes to these fields by proposing a complete overview of the applicability of the SErvice Engineering Methodology (SEEM) in an industrial context. The SEEM aims at supporting companies approaching the introduction of PSSs in their portfolio and suggests a structured decision-making process to (i) define the PSS offering most aligned with company product(s) and customer needs, (ii) (re-)engineer the (existing) service delivery processes, and (iii) balance the external performance (e.g. customer satisfaction, delivery time, service cycle time) with the internal performance (i.e. efficiency) of the service delivery process. The noteworthy benefits achievable through the SEEM are illustrated through a real case at the industrial partner ABB - a multinational company providing power and automation solutions. The implementation of all the SEEM steps is thoroughly described, and the advantages experienced along with the difficulties encountered are highlighted. Managerial implications and the main gaps to address in future research are also discussed.