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A conceptual framework for product-service configuration based on customer demand in a processing-equipment Product-Service System (PSS)
Published in Yigang He, Xue Qing, Automatic Control, Mechatronics and Industrial Engineering, 2019
Due to improvements in raw materials, labor costs and global environmental protection, competition in the manufacturing industry has intensified and profit margins have shrunk. Low value-added industrial products can no longer meet the requirements of manufacturing enterprises and environmental development (Gaiardelli et al., 2014; Aurich et al., 2006; Cavalieri & Pezzotta, 2012). In the past, most companies simply sold material products, and this traditional business model has been unable to bring huge profits to enterprises. In order to achieve sustainable development, more and more enterprises are transforming from product manufacturers to product service providers. Based on customer demand, a series of customized services are provided to customers by enterprises. These value-added services include product operation, maintenance, upgrading, recycling, and so on.
Project Leadership
Published in Anthony Graffeo, Leading Science and Technology-Based Organizations, 2018
Successful technology-based businesses command higher margins due to their ability to differentiate their product/service by providing higher value to their clients. Many companies are developing strategies to migrate toward value-added services to improve their competitive positions and profits. The path to this success however is rocky since the onus is on the S&T-based company to convince prospective clients of this value before delivering it! [8]. To complicate matters even more, initial success of a technology-based product/service with early adopters is difficult to sustain with mainstream clients without a substantial technology transfer step. This process has been described in crossing the chasm [9].
Enhancing the Value of Electricity
Published in Clark W. Gellings, Exploring the Value of Electricity, 2020
Figure 9-1 summarizes the key “puts and takes” of changing electricity demand relative to the 2012 Annual Energy Outlook. Each of these elements represents opportunities for value-added services which utilities could use to increase the value which electricity provides.
Pricing decision with conspicuous customers: quick responses versus value-added services
Published in International Journal of Production Research, 2021
Weihua Liu, Wanying Wei, Meili Wang, Ou Tang, Li Zhou
Providing value-added services, on the other hand, can increase the customers’ valuation and purchase intentions, and make them less willingness to wait for a sale if items have a risk of stockout (Cachon, Rard, and Swinney 2011). Value-added services include activities that enhance product design and visibility of brands such as better packaging, brand story, customers service before and after sales, advertising, and product placement (Zhao and Wang 2015). For example, L&C Leather Workshop opens stores in high-end clubs or high-end shopping malls, provides Japanese-style private butler services and invites customers to participate in the services in a regular basis. In order to attract more high-end consumers, L&C Leather Workshop has also expanded its service scope and gradually cultivated high-end service functions such as flight service and yacht interior (Bonnie Luxury Care Training 2014).
Strategies for warranty service in a dual-channel supply chain with value-added service competition
Published in International Journal of Production Research, 2018
Bin Dan, Shuguang Zhang, Maosen Zhou
Compared with the warranty service that is bundled with the product, value-added service is provided by enterprises as an option. Value-added service is another means for companies to gain a competitive advantage after their products start to become commodities (Reinartz and Ulaga 2008). Many scholars have defined the concept of value-added service (e.g. Szeinbach, Barnes, and Garner 1997; Belvedere, Grando, and Bielli 2013; Zhang et al. 2015). In this paper, we cite the concept presented by Zhang et al. (2015). They define value-added service as the activities that add value to products, meet consumers’ demand, provide a competitive advantage to companies and improve their profits. It consists of multiple kinds of services such as design, delivery, installation, training, maintenance and financial service. In general, value-added service covers most services offered by both manufacturers and retailers, except for the warranty service that is bundled with the product.
Industry 4.0 strategies and technological developments. An exploratory research from Italian manufacturing companies
Published in Production Planning & Control, 2020
Andrea Chiarini, Valeria Belvedere, Alberto Grando
First studied by Vandermerwe and Rada (1988), servitization refers to operations management as a whole (Smith, Maull, and Ng 2014) and introduces a new and integrated relationship between firms and their customers (Keränen and Jalkala 2014; Maizza and Zanni 2015; Agrifoglio et al. 2017). It consists of a strategy aimed at enriching physical products with value-added services. According to Möller (2016), the Industry 4.0 paradigm could direct many manufacturing companies towards higher value-added activities correlated with a growing servitization trend in manufacturing and operations processes.