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ScienceDirect Procedia CIRP 60 (2017) 416 – 421
27th CIRP Design 2017
The task to design highly service-oriented Product-Service System Yosuke Kubota a*, Fumika Murakami a, Koji Kimita a, and Yoshiki Shimomura a a
Department of System Design, Tokyo Metropolitan University, Asahigaoka 6-6 Hino-shi, Tokyo, Japan
* Corresponding author. Tel.: 81-42-585-8425; E-mail address:
[email protected]
Abstract In recent years there has been much research on designing Product-Service systems (PSS), but difficulties still remain with regard to implementing them into industries. In order to break through this situation, this paper aims to clarify the problems regarding current research into PSS design. In particular, we investigate a literature review on PSS design and conduct interviews with experts in PSS research. Based on the results, we clarify and organize the tasks needed for effective PSS design, discussing the problems associated with it. Finally, we identify research issues concerning PSS design that require further work. © by Elsevier B.V. This is an open access article under the CC BY-NC-ND license ©2017 2017Published The Authors. Published by Elsevier B.V. (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer-review under responsibility of the scientific committee of the 27th CIRP Design Conference. Peer-review under responsibility of the scientific committee of the 27th CIRP Design Conference Keywords: PSS; Service-orientation; Design task; Customer requirement; Value-in-use
1. Introduction 2. Literature review Product-Service Systems (PSS) are new business strategies that create high added value by integrating physical products and services [1]. PSS can generate a higher sustainable profit by offering various services to customers throughout the entire product lifecycle. The key to PSS is shifting from a product orientation to a service orientation, whereby the activity and knowledge associated with the use of a product is considered to be more valuable to the customer than the product itself. Many authors have pointed out that this approach has the potential to enable manufacturing to enhance its products and services, making them more efficient and more economically and environmentally sustainable [2]. Therefore, it is important for manufacturing to design highly service-oriented PSS. Although many authors have addressed the development of design methodologies for PSS, difficulties still remain with regard to implementing them into industries. It is not easy for traditional manufacturers to design highly service-oriented PSS, and they usually design product-oriented PSS because they have focused on developing the product itself. In order to break through this situation, this paper aims to clarify the tasks that are necessary for designing highly service-oriented PSS.
2.1. Definition of PSS In the research into PSS that has been conducted so far, many authors have proposed definitions of PSS. Mont defined PSS as a system of products, services, networks of actors, and supporting infrastructure that is developed to be competitive, satisfy customers, and be more environmentally sound than traditional business models [3]. Based on this definition, there are three dimensions for PSS feasibility: economic competitiveness, environmental soundness, and customer satisfaction. Economic competitiveness evaluates whether enterprises enhance their competitive advantage by generating added value for their products and services. Environmental soundness evaluates whether PSS has a lower environmental impact than traditional business models by reducing the consumption of products. Customer satisfaction in PSS is fundamental. In order to realize it, PSS designers should integrate traditional parameters with customer involvement in system design and customer education. In addition, based on Mont’s definition, PSS has four elements. The first element of PSS is products. The product should be considered by system optimization. Product
2212-8271 © 2017 Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer-review under responsibility of the scientific committee of the 27th CIRP Design Conference doi:10.1016/j.procir.2017.02.016
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improvement depends on the type of product, the intensity of its use, and the values and factors associated with its ownership. The second element is services. Services represent a provider’s activities that enable the customer to use a product and receive support through the entire product lifecycle. The third element is infrastructure. Infrastructure represents the backbone of society that enables enterprises to provide services for customers, such as roads and communication facilities. The fourth element is networks of actors. This represents the relationships among the many stakeholders that are involved in the process of providing services. 2.2. Design process for PSS In Service Engineering, a PSS design process is proposed [4]. Figure 1 partially illustrates this design process. This section introduces the service design process in detail.
1. Development of an initial flow model
2. Extraction of customer requirements
the situations in which customers use a product (e.g., what customers use, what products they use, when they use them, and how they use them). From the descriptive content of a scenario, a designer can extract a customer’s requirements. Step 3: Development of a realization structure for PSS In this step, designers determine a realization structure for PSS, based on customer requirements. In PSS research, a view model is proposed to clarify the realization structure [9]. A view model represents the relationships between customer requirements, products, and services. As shown in Figure 3, this model consists of functions and entities, which are the concepts originally used in product design methodologies (e.g., [10] [11]). Function is an abstract concept that represents what is offered to fulfil customer needs. A function is described as “verb + noun” (e.g., “capture + images in elevators”). Entity represents any of the physical products and human resources that construct a PSS (e.g., staff, technicians, machinery, and facilities). In this case, human resources correspond to the service share of the PSS, while physical products correspond to the product share. A view model enables designers to clarify the roles of the products and services in PSS.
Security and safety of the service
3. Development of a realization structure for customer requirements Figure 1: PSS design process [4].
Customer requirements
Respond to an emergency
Capture image in elevators
Function
Monitoring operator
Security camera
Entity
Step 1: Development of an initial flow model In this PSS design process, designers first define a chain of agents. Many services form complex structures consisting of many agents. In Service Engineering, a flow model is proposed to represent the chain of agents [5–7] (see Figure 2). In this step, an initial flow model is determined by defining the agents and their relationships.
Figure 3: View model of an elevator service [9]. 3. Organizing PSS design problems 3.1. Overview
Figure 2: Flow model of an elevator service [5–7]. Step 2: Extraction of customer requirements For the extraction of customer requirements, in this step a persona is described for each agent that works as a receiver in the service. The persona is a tool that gives a simplified description of a customer, which functions as a compass in the design process [8]. Based on this persona, a scenario is then developed to clarify the context in which the service is received. The scenario is like a short novel in which the experiences of the persona in using a product/service are written in natural language. Therefore, a designer can imagine
In the PSS design process, the extraction of customer requirements, which is conducted in Step 2 (see 2.2), influences the design processes that follow. This means that extracting customer requirements is one of the most important steps for designing highly service-oriented PSS. Accordingly, as the first step of this research project, this paper aims to clarify the tasks involved in extracting customer requirements in order to design a highly service-oriented PSS. To do so, we conducted a PSS design workshop, and then each designed solution was classified according to its level of service orientation. By comparing solutions with a high service orientation with one with a low service orientation (i.e., a product-oriented PSS), we then clarified the tasks for designing highly service-oriented PSS. In evaluating the level of service orientation, this study adopts the types of service proposed by Tan [12]. In the following section, these types of service are introduced.
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3.2. Perspectives for evaluating service orientation in PSS In the process of design, designers need to consider various elements that are involved in the design process rather than focusing only on the function that is realized by the design solution. This is not unique to PSS design. Recently, many researchers have pointed to the importance of considering each stage in the lifecycle of a product (e.g., manufacturing, operation, maintenance, and disposal) at the upstream stage of the design process and reflecting this in the design. A series of approaches dealing with specific design goals have been labelled “Design for X” methodologies [13]. The “X” represents different life-phase systems that are sought to be optimized, such as serviceability and supportability. Based on this methodology, Tan proposed four types of service: “product use services” (the PSS focuses on the customer’s use phase); “product life services” (the PSS supports the customer throughout the entire product lifecycle); “customer activity services” (the PSS supports not only the entire lifecycle of a product but also customer activity)”; and “business supporting services” (the PSS supports the customer’s business) [14]. Figure 4 shows various PSS development approaches in relation to the types of service mentioned above.
Figure 4: PSS development approach in relation to types of service [14] Designers tackle product development as their initial premise. In traditional manufacturing, this focuses on enhancing the quality and functionality of the core product. Starting from this core product development, designers then develop various services as follows. First, “product use services” represents services relating to the availability or serviceability of products during their use by customers (e.g., maintenance services and repair services). Examples of such product use services include corrective and preventive maintenance through on-site inspections. Second, “product life services” represents services that are carried out to solve problems throughout the entire product lifecycle (e.g., installation services and disposal services). One of the examples of this service is disposal services, in which provider treat products even after customer finish to use products. Third, “customer activity services” represents services that partially support customer activity associated with using products (e.g., operating services). For example of this service, many of the
companies offer training and education programes about technical operation of product for the customer. Finally, “business supporting services” represents services that focus on supporting customers’ business activities associated with using products (e.g., consulting services and outsourcing services). An example of such business supporting services is an outsourcing service, in which the provider takes the all responsibility for required parts of customer business. Of these four types of service, the types that are more in the left on Figure 4 focus on providing products for customers. Such types of service are highly product-oriented. By contrast, the types that are more in the right on Figure 4 focus on supporting customer activity and business activity during the use of products. Such types of service are highly service-oriented. As described above, the four types of service can be regarded as perspectives for evaluating the level of service orientation. 4. PSS design workshop 4.1. Overview of the workshop In order to clarify the task for designing a highly service-oriented PSS, we conducted a PSS design workshop that involved as participants seven people who work in manufacturing companies. In the sector where each participant belongs, service orientation is regarded as important strategy of company. Therefore, this workshop was held so that each participant exchange their opinion about PSS design each other. We proceeded workshop by referring to PSS design process described in 2.2. In the beginning of workshop, the participants extracted customer requirements by using persona and scenario. Subsequently, participants then determined the details of a product and service by using the view model. In this workshop, each participant individually proceeded own design. At the end of the workshop, the participants discussed the tasks involved in designing highly service-oriented PSS by comparing each design solution. 4.2. Results of the workshop Table 1 shows the results of classifying each design solution according to its level of service orientation. The level of service orientation is based on four types of service, as stated in 3.2.
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Table 1: Types of service corresponding to the PSS designed by each participant Participant 1
䖃
䖃
Participant 2
䖃
䖃
䖃 䖃
Participant 3
䖃
Participant 4
䖃
䖃
䖃
䖃
䖃
Management of maintenance activities
Certificates
Education/training
Customer Activity Service
Leasing of product
Service technicians on call
IT/management systems
Product Life Service
Extended warranty
Installation/ commissioning Product Use Service
Troubleshooting
Participant 7
䖃
Business Supporting Service
䖃
Participant 6
Project management
䖃 䖃
Service agreements
䖃
Participant 5
As an example of a highly service-oriented PSS, the details of the design solution that participant 7 produced are shown below. As basic premises, participant 7 assumed that an ICT provider was the service provider and that an IT systems department was the customer. Figure 5 shows the flow model. In this figure, a PC manufacturer and a software company are described in addition to the ICT provider and the IT systems department. The ICT provider provides a customized PC for the customer. A customized PC is used for the IT system.
Figure 6: Persona and scenario Figure 7 show the service view model based on the customer requirements. The two functions described are “improving the business of each department” and “proposing new business for each department.” Based on these functions, sub-functions are described. The sub-functions represent more details that are needed to realize the main functions. Human resources and artifacts are associated with the lowest level functions as function carriers.
Figure 5: Flow model Participant 7 first clarified the persona of the customer (Figure 6). The content of the persona describes a man who works in an IT systems department. This man’s job is to manage the information system. He wants to utilize the data collected by the information system. Based on this persona, the imagined activity of the man was then described in the scenario. In the descriptive content of the scenario, the man’s activities and thinking relate to his ordinary job. Furthermore, his requirements for the IT system are identified as the customer’s requirements. The parts of the scenario shown in red correspond to these requirements. These requirements involve utilizing the IT system to improve the management of the company.
Figure 7: View model Figure 8 shows the structure of the PSS design solution derived from the service view model in Figure 7.
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Figure 8: Structure of PSS The services that are finally determined are: “a proposal to improve the business based on the analyzed data concerning the customer’s business”; and “a proposal for new business based on the analyzed data concerning the traditional business and the market”. In order to save the business data, an ICT provider cooperates with a cloud service company. Furthermore, in order to plan new business, the ICT provider cooperates with a consulting firm that has the skills to develop business strategies. These services, as stated above, can be regarded as consulting services that are realized in partnership with other stakeholders. Therefore, it is assumed that these services correspond to “business supporting services”. Participant 6 and participant 7 designed highly service-oriented PSS, including an education/training service that supports customer activity during the use phase and a project management service that supports the customer’s business. By contrast, participant 1 and participant 2 designed highly product-oriented PSS, including a troubleshooting service that solves problems occurring in the use phase and an extended warranty service that enables customers to use the product. 5. Discussion In order to clarify the task of designing a highly service-oriented PSS, we conducted a PSS design workshop. As shown in Table 1, each designed solution was classified according to its level of service orientation. High service-oriented solutions included those designed by participants 6 and 7. Solutions that resulted in more product-oriented services included those designed by participants 1 and 2. In this section, the former group is called “G1” and the latter group is called “G2.” G1 extracted customer requirements by focusing on customer activity that is performed after the use phase, while G2 extracted customer requirements by focusing on activity that is performed before the use phase. Such difference of extraction of customer
requirement is the key to influence the level of service orientation. On the basis of this difference in terms of the extraction of customer requirements, by comparing the solutions of G1 and G2 we clarified the tasks necessary for designing highly service-oriented PSS. In particular, it became clear that it is necessary to extract customer requirements by focusing on customer activity that is performed after the use phase. We explain this in what follows. G1 focused on customer activity after the use phase (e.g., plans to increase sales and improve business by using the products). As a result of focusing on such activity, G1 extracted the customer requirements from customer activity that is intended to fulfill the customers’ own purposes in using the products. In other words, they extracted a requirement to enhance value in use of the products [15]. It is not easy to satisfy these requirements perfectly with products alone because these requirements can change depending on the customer’s context in using the products. In order to satisfy such requirements, providers need to offer services that deal with changes to customer requirements. Therefore, G1 could design highly service-oriented PSS including such services. By contrast, G2 focused on customer activity before the use phase, including the customers’ motivations for using the products. In other words, they extracted the customer requirements that break down the barriers to using the products or services. These requirements include the motivation to enhance value in exchange [15]. In an existing business that aims to enhance value in exchange, providers do not need to maintain a relationship with a customer in order to satisfy such a requirement. In other words, G2 tried to extract customer requirements that can be satisfied within an existing business. Therefore, G2 could design highly product-oriented PSS including services that only encourage customers to purchase products or retain value in exchange of products. Many authors have pointed out the importance of focusing specifically on customer activity related to the use phase, as well as on the entire lifecycle of a product. However, previous studies have not revealed the task for designing highly service-oriented PSS. In contrast, we clarified this task as a result of the workshop. However, the validation of the task is not conducted in this paper. Therefore, we will conduct additional workshop in order to verify and evaluate the validity of clarified task. Furthermore, there may be other tasks for designing highly service-oriented PSS besides those clarified in this paper. Therefore, more research is needed to discover and verify such tasks. 6. Conclusion In this paper, we organized the features of a highly service-oriented PSS. Based on this, we analyzed the results of a PSS design workshop. Finally, we clarified the task of extracting customer requirements in order to design a highly service-oriented PSS. In particular, we clarified that it is necessary to extract customer requirements by focusing on customer activity that is performed after the use phase.
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