Many manufacturing companies have started moving into the service industry by
introducing services along with their core products. The development of
services provides companies growth opportunities and new revenue models.
Outsourcing and globalization can be seen as reasons to the increase of
technology-based knowledge-intensive business services (KIBS). In addition
services generally provide substantially higher profitability than other
industrial businesses and services also provide revenue through the entire
life cycle of products.
Development of integrated product-service solutions, however, includes great
challenges. Typically product and service design are made separately in
different organization units. Technical personnel are responsible of the
development of physical products while service planning is made by marketing
organization. As a result of this services are generally planned afterwards
causing problems in the compatibility of product and services. Also in many
cases there is too little attention to business analysis of
product-service-solutions, for example life cycle profit evaluation or revenue
logic assessment of alternative product-service solutions.
In this project the goal is to develop a new kind of knowledge-intensive
service and product design method. The method provides tools and practices for
1) concurrent design of product and service, 2) to manage and utilize
information gathered in different planning phases and 3) assess life cycle
costs and profitability of alternative product-service-concepts.
Competitive Advantage through Knowledge-intensive Product-Service Systems
project is part of Serve-Pioneers of Service Business 2006-2013 research
programme which is funded by the Finnish Funding Agency for Technology and
Innovation (Tekes). Target of the Serve programme is to increase and broaden
the services development of the Finnish industry and to promote academic
research in service related areas. Innovative service concepts and
internationally competitive business models renew and strengthen the Finnish
economy. The project started in November 2009 and expires in November 2011.