Abstract
This book chapter describes a conceptual framework that can support the identification of value co-creation within the context of digitally-enabled Product-Service Systems (PSS). The framework was developed based on the understanding of how and where value co-creation takes place along the first two phases of the product lifecycle. It does this by understanding how and where co-creation occurs, and it also considers the translation of data into information that can become knowledge within the context of the digitally-enabled PSS. The framework glues the different aspects together with an underlying orchestration and governance that focusses on supporting value co-creation based on the integration of information with data. The starting assumption is that the framework could be applied to existing PSS with their underlying value propositions and business models.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Aven, T. (2013, March). A conceptual framework for linking risk and the elements of the data–information–knowledge–wisdom (DIKW) hierarchy. Reliability Engineering & System Safety, 111, 30–36.
Bagheri, S., Kusters, R., & Trienekens, J. (2015). The customer knowledge management lifecycle in PSS value networks: Towards process characterization. In M. Massaro & A. Garlatti (Eds.), Proceedings of the 16th European Conference on Knowledge Management (pp. 66–77).
Baines, T. S., Lightfoot, H. W., Benedettini, O., & Kay, J. M. (2009). The servitization of manufacturing: A review of literature and reflection on future challenges. Journal of Manufacturing Technology Management, 20(5), 547–567. https://doi.org/10.1108/17410380910960984.
Baraldi, E., Gressetvold, E., & Harrison, D. (2012). Resource interaction in inter-organizational networks: Foundations, comparison, and a research agenda, Journal of Business Research, 65(2), 266–276.
Bertoni, A., Bertoni, M., & Isaksson, O. (2013). Value visualization in Product Service Systems preliminary design. Journal of Cleaner Production, 53, 103–117. https://doi.org/10.1016/j.jclepro.2013.04.012.
Choo, C. W. (2007). The knowing organization: How organizations use information to construct meaning, create knowledge, and make decisions. 1-384. https://doi.org/10.1093/acprof:oso/9780195176780.001.0001.
Cova, B., & Salle, R. (2008). Marketing solutions in accordance with the SD logic: Co-creating value with customer network actors. Industrial Marketing Management, 37, 270–277.
Frické, M. (2009). The knowledge pyramid: A critique of the DIKW hierarchy. Journal of Information Science. https://doi.org/10.1177/0165551508094050.
Grönroos, C. (2011). Value co-creation in service logic: A critical analysis. Marketing Theory. https://doi.org/10.1177/1470593111408177.
Grubic, T., & Jennions, I. (2018). Do outcome-based contracts exist? The investigation of power-by-the-hour and similar result-oriented cases. International Journal of Production Economics, 206, 209–219. https://doi.org/10.1016/j.ijpe.2018.10.004.
Harland, C. M. (1996). Supply chain management: Relationships, chains and networks. British Journal of Management, 7(S1), S63–S80.
Hertog, P. Den. (2000). Knowledge-intensive business services as co-producers of innovation. International Journal of Innovation Management. https://doi.org/10.1142/s136391960000024x.
Kindström, D., & Kowalkowski, C. (2014). Service innovation in product-centric firms: A multidimensional business model perspective, Journal of Business & Industrial Marketing, 29(2), 151–163. https://doi.org/10.1108/JBIM-08-2013-0165.
Kohtamäki, M., & Partanen, J. (2016). Co-creating value from knowledge-intensive business services in manufacturing firms: The moderating role of relationship learning in supplier-customer interactions. Journal of Business Research. https://doi.org/10.1016/j.jbusres.2016.02.019.
Kohtamäki, M., Parida, V., Oghazi, P., Gebauer, H., & Baines, T. (2019). Digital servitization business models in ecosystems: A theory of the firm. Journal of Business Research, 104, 380–392.
Kowalkowski, C., & Ulaga, W. (2017). Service strategy in action: A practical guide for growing your B2B service and solution business. Service Strategy Press.
Kuijken, B., Gemser, G., & Wijnberg, N. M. (2017). Effective product-service systems: A value-based framework. Industrial Marketing Management, 60, 33–41. https://doi.org/10.1016/j.indmarman.2016.04.013.
Lee, J., Kao, H. A., & Yang, S. (2014). Service innovation and smart analytics for Industry 4.0 and big data environment. In Procedia CIRP. https://doi.org/10.1016/j.procir.2014.02.001.
Lemon, K. N., & Verhoef, P. C. (2016). Understanding customer experience throughout the customer journey. Journal of Marketing, 80(6), 69–96.
Liew, A. (2007). Understanding data, information, knowledge and their inter-relationships. Journal of Knowledge Management Practice, 8(2), 1–16.
Osterwalder, A. (2014). Value proposition design: How to create products and services customers want. Wiley.
Paiola, M., & Gebauer, H. (2020). Internet of things technologies, digital servitization and business model innovation in BtoB manufacturing firms. Industrial Marketing Management, 89, 245–264. https://doi.org/10.1016/j.indmarman.2020.03.009.
Payne, A. F., Storbacka, K., & Frow, P. (2008). Managing the co-creation of value. Journal of the Academy of Marketing Science, 36(1), 83–96. https://doi.org/10.1007/s11747-007-0070-0.
Pezzotta, G., Pirola, F., Rondini, A., Pinto, R., & Ouertani, M. Z. (2016). Towards a methodology to engineer industrial product-service system—Evidence from power and automation industry. CIRP Journal of Manufacturing Science and Technology. https://doi.org/10.1016/j.cirpj.2016.04.006.
Pezzotta, G., Sassanelli, C., Pirola, F., Sala, R., Rossi, M., Fotia, S., Koutoupes, A., Terzi, S., & Mourtzis, D. (2018). The Product Service System Lean Design Methodology (PSSLDM). Journal of Manufacturing Technology Management. https://doi.org/10.1108/jmtm-06-2017-0132.
Pirola, F., Pezzotta, G., Andreini, D., Galmozzi, C., Savoia, A., & Pinto, R. (2014). Understanding customer needs to engineer Product-Service Systems. Paper presented at the IFIP International Conference on Advances in Production Management Systems.
Porter, M. E., & Heppelmann, J. E. (2014). How smart, connected products are transforming competition. Harvard Business Review, 92(11), 64–88.
Raja, J. Z., Frandsen, T., Kowalkowski, C., & Jarmatz, M. (2020). Learning to discover value: Value-based pricing and selling capabilities for services and solutions. Journal of Business Research, 114, 142–159. https://doi.org/10.1016/j.jbusres.2020.03.026.
Rowley, J. (2007). The wisdom hierarchy: Representations of the DIKW hierarchy. Journal of Information Science. https://doi.org/10.1177/0165551506070706.
Rymaszewska, A., Helo, P., & Gunasekaran, A. (2017). IoT powered servitization of manufacturing—An exploratory case study. International Journal of Production Economics. https://doi.org/10.1016/j.ijpe.2017.02.016.
Shedroff, N. (1999). Information interaction design: A unified field theory of design. Information Design, 267–292.
Sklyar, A., Kowalkowski, C., Tronvoll, B., & Sörhammar, D. (2019). Organizing for digital servitization: A service ecosystem perspective. Journal of Business Research. https://doi.org/10.1016/j.jbusres.2019.02.012.
Terzi, S., Bouras, A., Dutta, D., Garetti, M., & Kiritsis, D. (2010). Product lifecycle management—From its history to its new role. International Journal of Product Lifecycle Management. https://doi.org/10.1504/IJPLM.2010.036489.
Valtakoski, A. (2017). Explaining servitization failure and deservitization: A knowledge-based perspective. Industrial Marketing Management. https://doi.org/10.1016/j.indmarman.2016.04.009.
Vandermerwe, S., & Rada, J. (1988). Servitization of business: Adding value by adding services. European Management Journal, 6(4), 314–324. https://doi.org/10.1016/0263-2373(88)90033-3.
Vargo, S. L., & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68(1), 1–17. https://doi.org/10.1509/jmkg.68.1.1.24036.
Vargo, S. L., & Lusch, R. F. (2008). From goods to service(s): Divergences and convergences of logics. Industrial Marketing Management, 37(3), 254–259. https://doi.org/10.1016/j.indmarman.2007.07.004.
West, S., Gaiardelli, P., & Rapaccini, M. (2018a). Exploring technology-driven service innovation in manufacturing firms through the lens of Service Dominant logic. IFAC Papersonline, 51(11), 1317–1322. https://doi.org/10.1016/j.ifacol.2018.08.350.
West, S., Gaiardelli, P., Resta, B., & Kujawski, D. (2018b). Co-creation of value in Product-Service Systems through transforming data into knowledge. IFAC-PapersOnLine. https://doi.org/10.1016/j.ifacol.2018.08.349.
West, S., Stoll, O., Østerlund, M., Müller-Csernetzky, P., Keiderling, F., & Kowalkowski, C. (2020). Adjusting customer journey mapping for application in industrial product-service systems. In International Journal of Business Environment, 11. https://doi.org/10.1504/IJBE.2020.110911.
Windahl, C., Andersson, P., Berggren, C., & Nehler, C. (2004). Manufacturing firms and integrated solutions: Characteristics and implications. European Journal of Innovation Management, 7(3), 218–228. https://doi.org/10.1108/14601060410549900.
Wuest, T., Wellsandt, S., & Thoben, K. D. (2016). Information quality in PLM: A production process perspective. IFIP Advances in Information and Communication Technology. https://doi.org/10.1007/978-3-319-33111-9_75.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2021 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
West, S., Zou, W., Rodel, E., Stoll, O. (2021). Value Co-creation in Digitally-Enabled Product-Service Systems. In: Kohtamäki, M., et al. The Palgrave Handbook of Servitization. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-75771-7_26
Download citation
DOI: https://doi.org/10.1007/978-3-030-75771-7_26
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-75770-0
Online ISBN: 978-3-030-75771-7
eBook Packages: Business and ManagementBusiness and Management (R0)