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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
Index


1.   Abstract
2.   Introduction
3.   Research programme
4.   Analysis of the literature
5.   Key findings
6.   Conclusions and implications
7.   References
8.   Personal evaluation of the paper

                                        Desirée Suárez Santana
1. Abstract




              Desirée Suárez Santana
2. Introduction


Definition of servitization What?
(Vandermerwe and Rada, 1988) Who?
Traditional manufacturing firms moving to servitization
       Where?                                               To catch
Justification of the research  Why?                         the
                                                             reader’s
Related topics of research e.g.: PSS                        attention
Short summary of the methodology How?
Conclusion of the introduction

                                              Desirée Suárez Santana
3. Research programme


3.1. Aim, scope and questions to guide research

3.2. Search strategy, results and analysis




                                             Desirée Suárez Santana
3.1. Aim, scope and questions to guide
                 research



Purpose of this review

    IDENTIFY, INTERPRET AND SUMMARISE THE LITERATURE
          CURRENTLY AVAILABLE ON SERVITIZATION

Most relevant publications in this review:
Vandermerwe and Rada (1988)  concept of servitization
Wise and Baumgartner (1999) traditional manufacturing to
product-related services



                                                  Desirée Suárez Santana
3.1. Aim, scope and questions to
           guide research


Formulated questions for guiding the research:
  What?
  How?
  Where?
  Who?
  Why?



                                           Desirée Suárez Santana
3.2. Search strategy, results and
              analysis


1) - Identification of relevant data sources
   - Selection of time frame
   - Keywords

                150 articles, reports and books




                                                  Desirée Suárez Santana
3.2. Search strategy, results and
              analysis


2) Eliminate duplicate results
                                                     49 documents
3) Check if the titles are relevant to this work

4) Check references: the list increased to 58 publications

5) Read the abstracts of the selected articles and, if
   they are relevant, read the whole text


                                               Desirée Suárez Santana
3.2. Search strategy, results and
              analysis


Analysis supported by mind-mapping techniques in
which the principal ideas and contributions are
established.

Example of a
mindmap:



                                          Desirée Suárez Santana
4. Analysis of the literature


Wide range of research papers on servitization since
1988
Papers reviewed: 40% from the USA, 20% from the
UK, 15% from Switzerland and 5% from Western
Europe
Different topics covered: divided into different
groups according to their corresponding themes
Case studies: Inductive and deductive
                                          Desirée Suárez Santana
4. Analysis of the literature




                        Desirée Suárez Santana
5. Key findings


5.1. Defining “servitization”
5.2. Evolution of servitization
5.3. Features of servitization
5.4. Drivers of servitization
5.5. Challenges in the adoption of servitization
5.6. Industrial examples of servitization adoption
5.7. Previous research aiding in the adoption of servitization
5.8. Future research challenges for servitization

                                                  Desirée Suárez Santana
5. 1. Defining “servitization”


“Innovation of an organisations capabilities and
processes to better create mutual value through a shift
from selling product to selling PSS (product-service
system).”




                                             Desirée Suárez Santana
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
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
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
5. 5. Challenges in the adoption of
            servitization


Servitization presents challenges for:

- service design,

- organisation strategy and

- organisation transformation.




                                         Desirée Suárez Santana
5.6. Industrial examples of
       servitization adoption


- Large companies whose outputs are high-value capital
equipment.

Examples: Alston (train and ship manufacturing),

          Rolls-Royce (car manufacturing)




                                            Desirée Suárez Santana
5.7. Previous research aiding in the
      adoption of servitization


- Lack of guidance, tools or techniques that might help
companies to adopt and successfully implement
servitization.




                                             Desirée Suárez Santana
5.8. Future research challenges for
            servitization


- Service design

- Organisational strategy

- Organisational transformation




                                  Desirée Suárez Santana
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
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 academics

Contributions in this field need to be grouped together
in one document review

                                            Desirée Suárez Santana
7. References
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
Thank you for your attention




                      Desirée Suárez Santana

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The servitization of manufacturing

  • 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. Index 1. Abstract 2. Introduction 3. Research programme 4. Analysis of the literature 5. Key findings 6. Conclusions and implications 7. References 8. Personal evaluation of the paper Desirée Suárez Santana
  • 3. 1. Abstract Desirée Suárez Santana
  • 4. 2. Introduction Definition of servitization What? (Vandermerwe and Rada, 1988) Who? Traditional manufacturing firms moving to servitization  Where? To catch Justification of the research  Why? the reader’s Related topics of research e.g.: PSS attention Short summary of the methodology How? Conclusion of the introduction Desirée Suárez Santana
  • 5. 3. Research programme 3.1. Aim, scope and questions to guide research 3.2. Search strategy, results and analysis Desirée Suárez Santana
  • 6. 3.1. Aim, scope and questions to guide research Purpose of this review IDENTIFY, INTERPRET AND SUMMARISE THE LITERATURE CURRENTLY AVAILABLE ON SERVITIZATION Most relevant publications in this review: Vandermerwe and Rada (1988)  concept of servitization Wise and Baumgartner (1999) traditional manufacturing to product-related services Desirée Suárez Santana
  • 7. 3.1. Aim, scope and questions to guide research Formulated questions for guiding the research: What? How? Where? Who? Why? Desirée Suárez Santana
  • 8. 3.2. Search strategy, results and analysis 1) - Identification of relevant data sources - Selection of time frame - Keywords 150 articles, reports and books Desirée Suárez Santana
  • 9. 3.2. Search strategy, results and analysis 2) Eliminate duplicate results 49 documents 3) Check if the titles are relevant to this work 4) Check references: the list increased to 58 publications 5) Read the abstracts of the selected articles and, if they are relevant, read the whole text Desirée Suárez Santana
  • 10. 3.2. Search strategy, results and analysis Analysis supported by mind-mapping techniques in which the principal ideas and contributions are established. Example of a mindmap: Desirée Suárez Santana
  • 11. 4. Analysis of the literature Wide range of research papers on servitization since 1988 Papers reviewed: 40% from the USA, 20% from the UK, 15% from Switzerland and 5% from Western Europe Different topics covered: divided into different groups according to their corresponding themes Case studies: Inductive and deductive Desirée Suárez Santana
  • 12. 4. Analysis of the literature Desirée Suárez Santana
  • 13. 5. Key findings 5.1. Defining “servitization” 5.2. Evolution of servitization 5.3. Features of servitization 5.4. Drivers of servitization 5.5. Challenges in the adoption of servitization 5.6. Industrial examples of servitization adoption 5.7. Previous research aiding in the adoption of servitization 5.8. Future research challenges for servitization Desirée Suárez Santana
  • 14. 5. 1. Defining “servitization” “Innovation of an organisations capabilities and processes to better create mutual value through a shift from selling product to selling PSS (product-service system).” Desirée Suárez Santana
  • 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. 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. 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. 5. 5. Challenges in the adoption of servitization Servitization presents challenges for: - service design, - organisation strategy and - organisation transformation. Desirée Suárez Santana
  • 19. 5.6. Industrial examples of servitization adoption - Large companies whose outputs are high-value capital equipment. Examples: Alston (train and ship manufacturing), Rolls-Royce (car manufacturing) Desirée Suárez Santana
  • 20. 5.7. Previous research aiding in the adoption of servitization - Lack of guidance, tools or techniques that might help companies to adopt and successfully implement servitization. Desirée Suárez Santana
  • 21. 5.8. Future research challenges for servitization - Service design - Organisational strategy - Organisational transformation Desirée Suárez Santana
  • 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. 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 academics Contributions in this field need to be grouped together in one document review Desirée Suárez Santana
  • 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. Thank you for your attention Desirée Suárez Santana