6 State-of-the-art on Product-Service Systems and Digital …
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6.5.3 Challenges and Constraints
This subsection describes and explores each of the six challenges and constraints
listed in Fig. 6.2 and summarized in Table 6.2.
6.5.3.1 Customer Perception
Regarding the identified challenges, literature expresses that on the demand side,
some customers have found to have “service-for-free attitudes” where they become
reluctant to pay additional fees for services added to their tangible goods (Coreynen
et al. 2017; Ulaga and Loveland 2014). This situation can make the service pricing
process highly difficult and poses an issue that has not been solved as of today.
6.5.3.2 Value of Data
Similarly, digital capabilities are one of the most recurrent identified challenges
faced by firms who are working towards their migration to PSS offerings. In this
way, we do not refer solely to the collection of data, but to the correct visualization and usage of the information that it represents (Stark 2014). The visualisation
of data supports human analytical thinking and decision making. Some visualization tools, also known as visual analytics synthetize multi-dimensional knowledge
from complex and dynamic data which can help support assessment, planning, and
forecasting within firms (Roy et al. 2016).
6.5.3.3 Technical Capabilities
The strong requirement for companies to increase their capabilities in managing
products and service variants, being agile and being ready to develop “ad-hoc
solutions for customers through the so-called “co-design” process” (Alghisi and
Saccani 2015) promotes value co-creation (Lenka et al. 2017). The development of
suitable knowledge management approach has been expressed as essential for the
successful management of all the variants (Cimini et al. 2018). Knowledge management is mentioned as one of three major areas of changes which demands that
all the personnel involved remain consistent with one another to ensure long-term
agreements (Cimini et al. 2018).
Kuhlenkötter et al. (2017) refers to six points of transformation through which
organizations should go in order to achieve the major changes in the socio-technical
system which can allow the proper development of digitalized PSS; some of these
include high degrees of autonomy, strong human centration, variability and solutions
along lifecycle, among others.
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6.5.3 Challenges and Constraints
This subsection describes and explores each of the six challenges and constraints
listed in Fig. 6.2 and summarized in Table 6.2.
6.5.3.1 Customer Perception
Regarding the identified challenges, literature expresses that on the demand side,
some customers have found to have “service-for-free attitudes” where they become
reluctant to pay additional fees for services added to their tangible goods (Coreynen
et al. 2017; Ulaga and Loveland 2014). This situation can make the service pricing
process highly difficult and poses an issue that has not been solved as of today.
6.5.3.2 Value of Data
Similarly, digital capabilities are one of the most recurrent identified challenges
faced by firms who are working towards their migration to PSS offerings. In this
way, we do not refer solely to the collection of data, but to the correct visualization and usage of the information that it represents (Stark 2014). The visualisation
of data supports human analytical thinking and decision making. Some visualization tools, also known as visual analytics synthetize multi-dimensional knowledge
from complex and dynamic data which can help support assessment, planning, and
forecasting within firms (Roy et al. 2016).
6.5.3.3 Technical Capabilities
The strong requirement for companies to increase their capabilities in managing
products and service variants, being agile and being ready to develop “ad-hoc
solutions for customers through the so-called “co-design” process” (Alghisi and
Saccani 2015) promotes value co-creation (Lenka et al. 2017). The development of
suitable knowledge management approach has been expressed as essential for the
successful management of all the variants (Cimini et al. 2018). Knowledge management is mentioned as one of three major areas of changes which demands that
all the personnel involved remain consistent with one another to ensure long-term
agreements (Cimini et al. 2018).
Kuhlenkötter et al. (2017) refers to six points of transformation through which
organizations should go in order to achieve the major changes in the socio-technical
system which can allow the proper development of digitalized PSS; some of these
include high degrees of autonomy, strong human centration, variability and solutions
along lifecycle, among others.