Made to Serve How Manufacturers can Compete Through Servitization and Product Service Systems

Professor Tim Baines leads Aston Business School’s research on servitization. He is an international authority on servitization, and works extensively with manufacturers to transform their operations to compete through Product-Service Systems (PSS). He has published over 200 papers across the disciplines of management and engineering, and is amongst the most frequently-cited authors on servitization and Product-Service Systems. He has experience of a wide range of industrial engineering, technology management, and manufacturing management disciplines, and works with the leading companies in his field including Rolls-Royce, Caterpillar, Alstom, MAN and Xerox. His career started with a technician apprenticeship, and has progressed through a variety of industrial and academic positions, including that of Visiting Scholar within the Centre for Technology, Policy and Industrial Development at the Massachusetts Institute of Technology. He is a Chartered Engineer and a Fellow of both the Institution of Mechanical Engineers and the Institution of Engineers and Technologists.

Dr Howard Lightfoot is Manufacturing Systems Consultant and during the past 7 years his work as a university Senior Research Fellow has focussed on the field of Servitization and Product-Service Systems where he has published extensively and is considered to be a leading authority in this area. Along with his co-author he works with the leading companies in his field including Rolls-Royce, Caterpillar, Alstom, MAN and Xerox. He has a First Class Honours Degree and PhD in Physics and is a Chartered Engineer and Fellow of the Institution of Engineers and Technologists. His career began as a lecturer in Electronic Engineering at Loughborough University before moving into industry where he held senior manufacturing operations and management positions within manufacturing companies such as Marconi and the Volex Group and held board level positions in several SMEs supplying Automotive, Defence and Aerospace sectors. He has over 25 years of experience in high technology product development and manufacturing with International business development experience gained in Western Europe, USA and the Far East.

Preface

Foreword

1. Introduction

1.1 Terminology and Scope

1.2 Knowledge Base

1.3 What’s New Here?

1.4 Navigating This Book

PART 1: BUSINESS CONTEXT

2. Business Context for Servitization

2.1 An Economic Perspective

2.2 An Environmental Perspective

2.3 A Market and Social Perspective

2.4 A Technology Innovation Perspective

2.5 A Knowledge Perspective

2.6 Summarizing the Business Context

PART 2: COMPETING THROUGH SERVICES

3. Elements of Servitization

3.1 The Challenge of Visualizing What it Can Mean to Servitize

3.2 A Process of Servitization

3.3 Defining Base, Intermediate and Advanced Services

3.4 Features Commonly Coupled to Advanced Services

3.5 A Summary of Advanced Services

4. Business Implications of Advanced Services

4.1 Setting Out to Explore Financial Performance

4.2 Services, Revenues and Profitability

4.3 Motivations of Manufacturers Providing Advanced Services

4.4 Motivations of Customers Adopting Advanced Services

4.5 A Roadmap of Servitization and Advanced Services

PART 3: SERVICE DELIVERY SYSTEM

5. Delivery of Advanced Services

5.1 Searching for Leaders

5.2 A Perspective Against the World of Production

5.3 Advanced Services and Product–Service Systems

5.4 Service Delivery System for Advanced Services

5.5 Key Capabilities of a Service Delivery System

5.6 Chapter Summary

6. Performance Measures and Demonstration of Value

6.1 A Pyramid of Performance Measures

6.2 Customer Facing Measures of Performance

6.3 Macro Internal Measures of Performance

6.4 Local Internal Measures and Indicators of Performance

6.5 Demonstration of Value

6.6 Chapter Summary

7. Facilities and Their Location

7.1 Facilities in the Delivery of Advanced Services

7.2 Impact of Facilities and Their Location

7.3 Mitigating the Need for Co-Location

7.4 Chapter Summary

8. Vertical Integration and Organizational Structure

8.1 Organizational Structure in the Delivery of Advanced Services

8.2 Vertical Integration in the Delivery of Advanced Services

8.3 Impact of Vertical Integration and Organizational Structure

8.4 Mitigating the Need for Integration

8.5 Chapter Summary

9. Information and Communication Technologies

9.1 ICT Architecture in the Delivery of Advanced Services

9.2 Monitor

9.3 Transmit and Store

9.4 Analyse and Respond

9.5 Impact of ICT Capabilities

9.6 Chapter Summary

10. People Deployment and Skill-Sets

10.1 Deployment of Staff in the Delivery of Advanced Services

10.2 Behaviour and Skill-Sets of Front-Office Staff

10.3 Culture, Leadership and Incentives in the Front Office

10.4 Impact of an Integrated Skill-Set

10.5 Chapter Summary

11. Business Processes

11.1 Services Processes in a Production Environment

11.2 Business Processes in the Delivery of Advanced Services

11.3 Proactive Processes as the Core for Advanced Services Delivery

11.4 Chapter Summary

PART 4: READINESS to SERVITIZE

12. Starting a Transition

12.1 Summarizing Servitization, Advanced Services and their Delivery System

12.2 A Readiness to Servitize

12.3 Overcoming the Obstacles to Transformation

12.4 The Journey Continues

Appendix: Acknowledgements and Guiding Studies

Index

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