Which industrial product service system fits best? Evaluating flexible alternatives based on customers' preference drivers

Abstract

Purpose

Industrial product service systems (IPS²) are required to meet current customer needs in order to provide solutions to current customer problems. Furthermore, adaptability to changing customer decision drivers is required in order to account for customers' preference changes over time. The purpose of this paper is to present an approach where customer preference drivers for different IPS² are identified and their directions analyzed.

Design/methodology/approach

A theoretical, literature‐based analysis, drawing on different fields of economic research, is made use of. A tool to anticipate customer decisions based on the identified preference drivers is devised.

Findings

Nine main preference drivers are identified. These are customer resources, know‐how, number of employees, core competences, value‐based figures, process intricacy, process standardization, process frequency and process significance.

Research limitations/implications

The drivers identified on a theoretical basis should be investigated empirically. Special consideration should be given not only to the direction of their effect, but also their strength and interdependency.

Practical implications

The paper helps IPS² suppliers to analyze customers' preferences and helps decide about the design and the business model for the IPS².

Originality/value

The paper is the first paper that focuses on the relevant influence factors of a customer's decision about the IPS²‐design.

Citation

Rese, M., Strotmann, W. and Karger, M. (2009), "Which industrial product service system fits best? Evaluating flexible alternatives based on customers' preference drivers", Journal of Manufacturing Technology Management, Vol. 20 No. 5, pp. 640-653. https://doi.org/10.1108/17410380910961037