Product/Service System Design and Beyond

Abstract

Manufacturers in developed countries today face severe competition from hardware manufacturers in low-wage countries. This competition is expected to become tougher as the quality of products from manufacturers in developing countries improves. Firms in developed countries need to find ways to distinguish themselves in terms of value for customers. Product quality is part of this value. Service is also an important element that creates value for customers. Manufacturers in developed countries regard service as increasingly important. Some manufacturing firms are strategically shifting from the role of “product seller” towards “service provider” (Oliva and Kallenberg 2003). Importantly, service activity is increasingly being incorporated into the design space, an area traditionally dominated by physical products in manufacturing industries. Companies expand the aim of engineering design from a physical product to include products and services, so that the whole design is effective and efficient. Such an offering is often called Product/Service Systems (PSS) (Mont 2002; Tukker and Tischner 2006)