Short answer
When developing new industrial products, simultaneously design the accompanying services and the business model that supports them to create a more valuable and profitable product-service system.
- Field
- Commercial Production
- Source
- Academic Publication (2015)
- Method
- Case Study
- Evidence
- Strong effect
By integrating service innovation with business model design, manufacturing firms can create competitive product-service systems (PSS) that enhance profitability. This commercial production research insight is drawn from a 2015 study published in Academic Publication. Using Case study, researchers explored how this design variable affects real-world outcomes. The key design takeaway: When developing new industrial products, simultaneously design the accompanying services and the business model that supports them to create a more valuable and profitable product-service system.
Integrating Service Innovation Boosts Industrial Profitability
By integrating service innovation with business model design, manufacturing firms can create competitive product-service systems (PSS) that enhance profitability.
Academic Publication · 2015
Key Findings
- 01An integrated approach to innovation and business model design is crucial for PSS development.
- 02The iSIM method proved applicable in industrial settings for creating PSS.
Application
Design takeaway
When developing new industrial products, simultaneously design the accompanying services and the business model that supports them to create a more valuable and profitable product-service system.
How to apply
When conceptualizing a new product, immediately begin mapping out the potential services that could be offered and how these services will be structured and delivered as part of a cohesive business model.
Project actions
- 01Consider the entire lifecycle of your product, including maintenance, support, and upgrades, as potential service offerings.
- 02Map out how customers will interact with both the product and its associated services.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Provides a practical framework (iSIM) for integrating service and business model design.
- +Demonstrates applicability through industrial use-cases.
Limitations
It can be challenging to accurately predict customer adoption of new services or the long-term profitability of a product-service system without extensive market testing.
Reliability & validity
The findings are based on case studies, which provide strong internal validity for the specific contexts but may have limited external generalizability. Further research with a larger sample size across different industries would enhance reliability.
Think critically
To what extent does the 'service-orientation' paradigm truly represent a fundamental shift versus an evolution of existing customer support models in industrial manufacturing?
Design Principles
"Holistic Product-Service System Design: Integrate product, service, and business model innovation for enhanced competitive advantage."
The shift towards service-oriented manufacturing requires a holistic approach. Designers and engineers must consider not only the physical product but also the associated services and how they are delivered and monetized to achieve a competitive advantage.
What This Means for Your Design
Making products more profitable means thinking about the services that come with them and how to sell them together, not just the product itself.
How to use in your project
- 1.Use this research to justify the inclusion of service design and business model considerations in your design process, especially when proposing a new product-service system.
Add to My Project
Quick Cite
Paragraph starter
The transition of industrial production towards service orientation necessitates an integrated approach to innovation and business model design for product-service systems (PSS). Research indicates that methods like iSIM, which combine these elements, are crucial for enhancing competitive positioning and profit potential by creating cohesive PSS offerings.
Source
Questions About This Research
- What does the research say about integrating service innovation boosts industrial profitability?
- When developing new industrial products, simultaneously design the accompanying services and the business model that supports them to create a more valuable and profitable product-service system. Evidence: Academic Publication (2015).
- Why does "Integrating Service Innovation Boosts Industrial Profitability" matter for design?
- The shift towards service-oriented manufacturing requires a holistic approach. Designers and engineers must consider not only the physical product but also the associated services and how they are delivered and monetized to achieve a competitive advantage.
- How can designers apply this research?
- When developing new industrial products, simultaneously design the accompanying services and the business model that supports them to create a more valuable and profitable product-service system.
- What were the main findings?
- An integrated approach to innovation and business model design is crucial for PSS development.. The iSIM method proved applicable in industrial settings for creating PSS.
- What research method was used?
- Case Study.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2015 journal from Academic Publication.
- What should I do differently in my next project?
- When conceptualizing a new product, immediately begin mapping out the potential services that could be offered and how these services will be structured and delivered as part of a cohesive business model.
- What are the limitations?
- The study was based on use-cases from a single corporation, potentially limiting generalizability to other industrial sectors or company structures.