IPSS

ORIGINAL ARTICLE

Industrial Product-Service Systems (IPS2)Paradigm shift by mutually determined products and services

Horst Meier & Oliver Völker & Birgit Funke

Received: 19 March 2009 /Accepted: 4 January 2010# Springer-Verlag London Limited 2010

Abstract As Industrial Product-Service Systems (IPS2) arespecified by integratedly considered product and serviceshares, they represent a new solution-oriented approach fordelivering value in use to the customer during the wholelife cycle of a product. The article to be launched describesthe general approach of Industrial Product-Service Systemsincluding motivation and definitions. The incorporatedparadigm shift from leadership in technology to leadershipin use enables innovative business models. It is shown howa flexible solution space arises from these business models.The broad overview of the scientific issues in IndustrialProduct-Service Systems is complemented by exemplaryresearch results regarding the delivery phase, like modularorganization and operational resource planning.

Keywords Industrial Product-Service Systems .

Product-service systems . Business models .

Service delivery . Organization

1 Introduction

In mechanical engineering and plant design, product-relatedservices are usually considered as an add-on to the actualproduct [1]. However, industrialized countries are subject toa structural change towards a service society, while theindustry sector drifts to emerging and developing countries[2]. Companies of the machine tool and plant sector have tokeep their competitiveness by shifting to more service-oriented businesses. To survive, working plants start thetertiarization of the industry sector by means of IndustrialProduct-Service Systems (IPS2). IPS2 are forcing a newunderstanding for business relationships within thebusiness-to-business market. They are based uponproduct-service systems that can be defined as customerlife cycle-oriented combinations of products and services toprovide a higher customer value [3–5]. Main stakeholdersof this business relationship are identified as the customer,the OEM (also known as the IPS2 provider), the suppliers(IPS2 module, product, and service supplier), and thesociety (e.g., government and competitors) with regard tosustainable and ecological solutions. Industrial Product-Service Systems especially deal with dynamic interdepen-dencies of products and services in production. Researchareas cover new concepts and methods which enable themachine producers to design the potential services in anoptimal way, already during the development of themachine. This paradigm shift from the separated consider-ation of products and services to a new product under-standing consisting of integrated products and servicescreates innovation potential to increase the sustainablecompetitiveness of mechanical engineering and plantdesign. The latter allows business models which do notfocus on the machine sales but on the use for the customer,e.g., in form of continuously available machines. The

H. Meier (*) :O. Völker :B. FunkeInstitute Product and Service Engineering,Chair of Production Systems, Ruhr-University Bochum,44780 Bochum, Germanye-mail: [email protected]: http://www.lps.ruhr-uni-bochum.de

O. Völkere-mail: [email protected]: http://www.lps.ruhr-uni-bochum.de

B. Funkee-mail: [email protected]: http://www.lps.ruhr-uni-bochum.de

Int J Adv Manuf TechnolDOI 10.1007/s00170-010-2764-6

http://www.lps.ruhr-uni-bochum.de

http://www.lps.ruhr-uni-bochum.de

business model determines the complexity of deliveryprocesses, while the characteristics of Industrial Product-Service Systems allow covering all market demands.

2 Motivation

2.1 Motivation for IPS2 in general

Already at the end of the 1960s, Theodore Levitt [6]made a statement that is still valid for current industrialapplications: “People don't buy products; they buy theexpectation of benefits.” The problem of this statement isto measure the expectation of benefit and to gain thehighest profit out of it. A classical product can bedemonstrated, calculated, and validated by its technicalfunctionality. If you want to work with Levitt's statement,you have to develop similar methods and tools for thissolution providing. A company has to tear off from thethinking within its product range. A high customer viewis essential, and thus a shifting from product sales tovalue sales will be realized. With the ending of the mereproduct selling, also the contact phase between thecustomer and the OEM will extend to the developmentand use phase of the purchased value. With this newbusiness, opportunities will emerge. The OEM will getqualitatively better and much more realistic customerknowledge about the usage of the sold machines. Theafter-sales market will vanish into the business relation-ship. However, not only will the OEM profit from thenew business but also the customer will get a win-winsituation. Customers not only request plants of highquality and high technology but also want to be placed ina position to operate these plants optimally.

Another aspect of the current industrial situation isfocusing more on individual solutions. Capital investmentsfor high technology machines and plants are increasing, andthe buyers of these machines and plants have the problemto deal with higher risks for their return of investment. Thesolutions providing with its focusing on the value provisionwill also change this situation to a risk sharing between thecustomer and the OEM. This can be both opportunity anddanger for the industrial collaboration.

Furthermore, the changing markets shift the focustowards sustainability; eco-efficiency has been declared asthe guiding principle to decrease environmental damages[7]. New objectives in production industries, allowingmaximal use with minimal resource consumption, competewith traditional economical models like economies of scale.In the economic dimension, sustainable development can beachieved in increased economic competitiveness by sellingfunctionality instead of selling products. If functionality canbe provided at competitive prices, purchasing the function-

ality instead of a comparable product becomes moreattractive.

All these market demands lead to an increasingcomplexity, as several aspects for successful serviceofferings (service engineering, service organization, andICT support) have to be established on the same level as theproduct-specific ones (Fig. 1).

These demands are met by consequently offeringIndustrial Product-Service Systems (IPS2) with integratedservices for all phases of the product life cycle.

2.2 Paradigm shift: leadership—from technologyto use

Regarding the production of complex high-technologyproducts, it is necessary to achieve a permanent develop-ment of the existing product and process knowledge inorder to retain the advantages in the competition. In thefield of highly complex machine tools, this continuousdevelopment requires the control of the service processesand assumes a comprehensive knowledge of the process bythe supplier. That is only possible if there is a constantcontact to the machines and plants in the operating process.At the same time, the enduring development of marketshares and the opening of new business fields gaining loyalcustomers are necessary to exploit these technologicaladvantages.

The requirements of the mechanical engineering andplant construction suppliers are linked to the demands ofthe customers for a comprehensive service offer [8]. Thishowever results from the effects of the turbulent globalmarkets, afflicting the increasing requirements concerningflexibility, quality, delivery dates, and prices. The custom-ers respond by concentrating on their core competences andtend to outsource secondary tasks. Nevertheless, the use ofnew and even more complex technologies becomes moreand more important for the customer's competitiveness,whereas the risk to start such a technology can be coveredby even less customers due to restrictions regarding capitallock-up and knowledge.

These tasks on customers and suppliers side can both bemet by the supplier's development from leadership intechnology to leadership in use (Fig. 2). The use orientationas a system solution in the sense of an integrated offer ofIndustrial Product-Service Systems enables the supplier alife-cycle-spanning contact to his machines and thus theoption to optimize them. In the context of innovativebusiness models, the suppliers undertake more and moreresponsibility for individual process steps up to theresponsibility for the complete operation of a plant. Thecustomers are therefore freed from the control of the highlycomplex processes and are able to focus on their actual corecompetences.

Int J Adv Manuf Technol

2.3 Related research

There is several research going on in fields more or lesssimilar to IPS2. Some of this research is concentrating on aspecific problem or it results from differing viewpoints ofdifferent research disciplines and areas.

The customer value view was primarily brought toconsideration by marketing researchers when facing thechallenges of changing markets and upcoming globalization;

it specially focuses on customer needs and the effects ofcustomer orientation, e.g., by selling more and better services[9, 10]. Thereupon, the concept of service-dominant logicevolved also from the marketing perspective, stating thatcustomers mainly create value through service experiencesand relationships [11, 12].

The concept of product-service systems considers theintegration of products and services to enable new businessmodels aiming to fulfill customer needs [5, 13–18]. It has a

Expansion ofservice offers

Customer expectsefficient support for the

complete life-cycle(outsourcing)

Develop new markets withlow educated personal

(globalization)

Increase of complexityof capital goods

(high tech machine tools)

Process administration

Outsourcing

Availability guarantee

Consulting on demand

Life cycle

e-learning

Qualificatione-Business

Establishing service

organization Acceptance inspection

Modularization/configuration

Continuous increase of productivity

Industrial service engineering

Planning/simulation

Initial start-up

Ramp-up

Replacement part logistics

Real time

Calculation of risks

Lower capital commitment(Basel 2)

Dynamic market changes(risk sharing)

Multimedia

Consequent use of I&C technologies

Fig. 1 Modified market environment leads to new customer demands

Challenge for the OEM:• create new business models

• to identify and evaluate chances and risks

• development of service processes

• industrialization and automation of services

• new understanding of products:

• innovative product-service-systems

• suitable development processes

Challenge for the customer:• to evaluate chances and risks

• identification of core competencies

• to calculate own processes

• openness to the supplier:

• transparent processes

• organization

• Internet (remote service)

dissatisfaction of the consumerby not controllable level oftechnology

new service-based

business

Motivation for the OEM:• rise of customer loyalty

• opening of new business fields

• development of market shares

• information about the use of its products tocreate innovations

Motivation for the customer• focusing on core competences

• to make new technologies accessible

• reduction of capital lock-up

Fig. 2 Paradigm shift fromleadership in technology toleadership in use


broad view on products and services and includes B2C-markets. It is most common in Asian and Europeanengineering.

The term servitization of products was first referred to inthe management literature [19] and is sometimes also usedas a synonym for product-service systems or integratedproduct and service offering (see below). The relatedservicification concept also focuses on the enhancementof products by adding services while considering more theservice-engineering approaches [20, 21].

The concept of integrated product and service offeringviews from a life cycle perspective and aims to offer asolution with a combination of products and services thatsatisfies an identified customer need. The related functionalsales concept includes the perspective of environmentalimpacts. The connected concepts of integrated product andservice engineering as well as functional product develop-ment focus on creating a method for developing thoseintegrated product and service offering/functional sales. Theseconcepts are mainly discussed in Sweden and Japan [22–26].

Life cycle engineering, life cycle assessment, EcoDesign,design for environment and many related concepts focus onsustainability and how to develop, e.g., energy-efficientproducts, whereas in recent years, they tend to incorporateservice-related concepts (e.g., intelligent maintenance) toreach these aims [27–31].

2.4 History and industrial context

For some years now, there has been the knowledge in thefield of German mechanical and plant engineering that thefuture success of the individual companies is linkeddecisively to the product-accompanying services. A largenumber of enterprises will give this statement, and it is alsosupported by surveys [32–34]. Thus, the strong relevanceof product-accompanying services is obvious. Proven by

own survey among the companies involved in the jointproject Ogemo.net (Optimum Business Models for ProductService Systems in Cooperative Time Value Networks), thehighest relevance of services is awarded to the utilizationphase within the product life cycle [35]. According to this,most of the services are related to this phase. Concerningservice-oriented business models, it could be shown that adynamic service level over the life cycle helps to evaluatethe total cost of ownership more precisely while reducingthe failure rates of the plants especially in the early and latephases [36].

Currently, the enterprises focus on function-orientedbusiness models (see next section), but some of them haverealized the need in change [37].

In the mechanical engineering and plant constructionindustry, product-related services are usually seen as add-ons to the actual product [1]. An inefficient orientationtowards the real customer use, due to the employee's lack ofexperience, and the strict aim to fulfill all customerrequirements led to a high number of special, customer-individual solutions while clearly increasing the costs.Therefore, the product-accompanying approach is no longertargeting and will be replaced by an integrated viewfocusing on customer use. This paradigm shift from theseparated view of products and services to a new productunderstanding (Fig. 3) consisting of Industrial Product-Service Systems establishes innovation potential to increasethe competitiveness of the supplier. It also enables businessmodels where the customer use, e.g., a highly availablemachine, and not the selling of the machine itself is in thefocus.

Industrial Product-Service Systems thus represent aparadigm shift in the definition of service performance inmechanical engineering due to the integrated observation oftangible and intangible goods [38]. By focusing on thecustomer use, what justifies the increasing meaning of

P

S

Past

“Service Products”Independent service

development(out of engineering department)

Today

“Extended Products”Machine oriented service

development(in the engineering department)

Future

“Industrial Product-Service Systems”

Simultaneous andinterfering product and

service engineering

P

S

S

S

P

P

S P

S P

Fig. 3 History of IndustrialProduct-Service Systems


industrial services [39], Industrial Product-Service Systemsenable innovative customer–supplier relationships and newbusiness models.

3 Definitions

3.1 Industrial Product-Service Systems (IPS2)

“An Industrial Product-Service System is characterizedby the integrated and mutually determined planning,development, provision and use of product and serviceshares including its immanent software components inBusiness-to-Business applications and represents aknowledge-intensive socio-technical system” [38]. Indus-trial Product-Service Systems apply only in business-to-business applications and represent a socio-technicalsystem due to the interdependencies between the imma-nent product and service shares and the involvedpersons. During the delivery phase, the service sharesof Industrial Product-Service Systems are provided overthe whole life cycle to enhance customer value [40, 41].In distinction to product-service systems, the integrateddevelopment of the mutually determined product andservice shares is essential for Industrial Product-ServiceSystems; an exact separation between product and serviceis no longer possible.

This means in detail that

– An IPS2 is an integrated product and service offeringthat delivers values in industrial applications.

– IPS2 is a new product understanding consisting ofintegrated product and service shares.

– IPS2 comprises the integrated and mutually determinedplanning, development, provision, and use.

– IPS2 includes the dynamic adoption of changingcustomer demands and provider abilities.

– The partial substitution of product and service sharesover the life cycle is possible.

– This integrated understanding leads to new, customer-adjusted solutions.

– IPS2 enables innovative function-, availability-, orresult-oriented business models.

3.2 Business models

A business model can be described by use model,architecture of value creation, and turn over model (Fig. 4)[42, 43]. Depending on the individual use model, anadjusted concept of the sub-processes is necessary: Due tothe consequent orientation of the service offer towards theindividual customer use, the supplier takes over more andmore tasks which have been executed by the customerbefore. The customer–supplier relation is thus changedfrom a supplier–buyer relation to an integrative cooperation[8], where the established division between supplier andcustomer blurs more or less, depending on the specifica-tions of the use model. The innovative product understand-ing of Industrial Product-Service Systems with shares oftangible and intangible goods of course affects thedevelopment process of the service offer but furthermore

function-oriented

availability-oriented

result-oriented

IPS2- use modelsCustomer value

pay on orderpay on

availabilitypay on

productionTurn overmodel

product serviceoccurrence of IPS2

P S

Architecture of value creation

IPS2 product model

Processes

Objects (Resources)

OEM Supplier Customer

Fig. 4 Business models forIPS2 (based on [42])


leads to completely modified requirements towards theservice provision process.

The architecture of value creation includes the IndustrialProduct-Service Systems itself with its shares of tangibleand intangible goods as well as the supplier network, whichexecutes the value creation processes. An IndustrialProduct-Service System in the context of a function-oriented use model comprises, e.g., a maintenance contract,in order to provide the functionality for an agreed period oftime. In case of an availability-oriented use model, theusability of the production means it is guaranteed too. Forthe first time now, the supplier takes over businessprocesses of the customer in personal responsibility, e.g.,maintenance or preventative maintenance, and thereforebears a part of the product risk. In a result-oriented usemodel, the responsibility of the production result istransferred to the supplier, as the customers only pay forfaultless parts. The ability to reconfigure an IndustrialProduct-Service System is absolutely necessary in thecontext of a result-oriented use model, as the supplier hastaken over the responsibility for production and therebyalso takes over the risks caused by fluctuations of requiredunits. This risk can be avoided by contracted productionnumbers; it leads, however, to a considerable reduction ofcustomer flexibility and thus, in many cases, to a failure ofresult-oriented business models.

Industrial Product-Service Systems are paid by thecustomer in various ways in the context of specific turnover models, depending on the type of use model selected.The complete range of turn over models is possible, fromthe classical purchase of a machine with a supplementaryservice contract (e.g., maintenance contract) plus individualservice orders which are invoiced separately, up toperiodical payments depending on defined results of the

machine (e.g., availability and produced good parts). Themachine is either possessed by the customer or the supplier,depending on the selected business model and thecorresponding turn over model.

3.3 Specification of innovative use models

Industrial Product-Service Systems are individualized,customer-oriented configurations of products and services,which affect each other due to their integrated developmentand provision [38]. Innovative and flexible businessmodels, which describe the design of the customer–supplierrelation, are based on these dynamic systems. It can bevaried between function-, availability-, and result-orienteduse models [44]. The different types of business models areconnected to varying configurations of IPS2 occurring inthe range of products and services.

A function-oriented use model includes, e.g., a mainte-nance contract in order to guarantee the functionality for anagreed period of time. In an availability-oriented use model,the usability of the means of production is also guaranteed.For the first time, the supplier takes over business processesof the customer as his own responsibility and thus bears apart of the production risk. In a result-oriented use model,the complete responsibility of the production result istransferred to the supplier, as the customer pays for thefaultlessly produced parts only. The individual businessmodels can be differentiated further by the followingcriteria (Fig. 5):

Production responsibility: The supplier takes over theresponsibility for the production processes on thecustomer’s side in the context of a result-oriented usemodel. This responsibility remains with the individual

Functionoriented

Availabilityoriented

Resultoriented

Turn over model

Supply of operating personnel

Service initiative

Production responsibility

Supply of maintenance personnel

Pay on serviceorder

Customer

Customer

Customer

Customer/Supplier

Pay onavailability

Customer

Supplier

Customer

Supplier

Pay onproduction

Supplier

Supplier

Supplier

Supplier

Fig. 5 Specification of innova-tive use models (based on [44])


customer in the function- and availability-oriented usemodels.Supply of operating personnel: The operating person-nel for the machines will be provided by the supplier incase of a result-oriented use model. Otherwise, thecustomer is responsible for the operation of themachine and thus for the operating personnel.Service initiative: This specifies if a service process isexecuted on the initiative of the customer of the supplier.Supply of maintenance personnel: The maintenancepersonnel for Industrial Product-Service Systems isprovided by the supplier in the availability- and result-oriented use models. In case of a function-oriented usemodel, the customer is responsible for the maintenanceof the machine and thus the supply of the appropriatepersonnel, but it can be purchased from the supplier foran agreed payment if the customer orders an additionalservice.Turn over model: Referring to the different use models,the three turn over models (pay on service order, pay onavailability, and pay on production), can be distinguished.

3.4 Scientific fields of action

The shown paradigm shift of Industrial Product-ServiceSystems raises new scientific issues over the entire lifecycle:

& Rising complexity of processes by customer integration& Interdisciplinary issues& Knowledge management

& Stimulation of the innovation capability& Know how feedback.

Within the scope of the collaborative research project SFB/TR29, the mentioned main challenges are concretized (Fig. 6).The extensive change of all customer–supplier processesaccording to the IPS2 approach thus enables significantinnovation, optimum customer orientation, measurably re-duced time-to-market, as well as considerable cost reduction.

Therefore, the methodical and systematic background ofthe innovative product understanding has to be supportedby new scientific results regarding all phases of the IPS2

life cycle, whereas the engineering sciences are in thefocus, complemented by economic and social issues.

The IPS2 approach therefore has to establish a life cyclespanning procedure to achieve higher performance andincreased supplier mutability at the same time.

New opportunities are driven out of the IPS2 providing.The interdependent bundle of products and services of theIPS2 generates a greater value for the customer. Not like thenormal product offering with its defined functionality, theIPS2 includes a greater variety of functions and therefore ahigher value. It is developed as an integrated solution, andthus the customer should not be able to separate parts of theIPS2 to get them from another supplier. Third, the custom-ization of the IPS2 makes it difficult for the customer tocompare it with another offered solution [45]. Providing suchan individual solution is a great challenge of currentorganizations. Further on, new ways for measuring the prizelimit of an IPS2 have to be established, and the informationand telecommunication technology have to be used to workefficiently [46, 47].

Fig. 6 Scientific fields of actionof the SFB/TR 29 project


4 Flexible solution space depending on the businessmodel

It is the aim of the classical product development tolimit the solution space for a customer demand with thehelp of function-, concept-, and product modelinggradually, until a singular solution is available. Thedevelopment of Industrial Product-Service Systems canbe characterized by the fact that a dynamic use by thecustomer, within specifically defined parameters, is tobe realized. Therefore, it is not the main aim to reducethe solution space to just one solution [48]. The solutionspace, in fact, needs to be created by a large number ofsolution clusters, in which the Industrial Product-ServiceSystem can be used in various operation units (Fig. 7).The solution space is also necessary to react on thecontinuously changing customer requirements and pro-vider abilities. Within the two identified parameters, staffqualification and degree of automation, different optionscan be created for the IPS2 business models. The whitespace shows the flexibility of the IPS2 product model.Although, switching between different solution spaces isalso possible with Industrial Product-Service Systems.An IPS2 product model has the flexibility to work withthe dynamic changes over the life cycle without thenecessity to design a new IPS2. A long-time use of theIPS2 product model in the delivery and use phase can beguaranteed.

Furthermore, it can also be necessary that themodification of the use model and a variation of thecombination of the industrial product-service modulesmay lead to the transfer of an Industrial Product-ServiceSystem into another solution cluster. The setting of thesolution space in the context of the design of anIndustrial Product-Service System based on the conceptmodel takes place with the help of the variation of theparameters “degree of automation,” “use model,” (seeSection 3.3) and “staff qualification,” which will beexplained as follows.

4.1 Degree of automation

In the context of Industrial Product-Service Systems, adifference has to be made in the degree of automationbetween the automation of the service process and theautomation of the industrial product-service module. Ser-vice processes as well as industrial product-service modulescan be divided into manual, semi-automated, and automat-ed services, respectively industrial product-service mod-ules, depending on the degree of automation of theprovision process.

While the division is maintained between a serviceprovider and a service receiver in the automation of aservice, the automation of an industrial product-servicemodule leads to the integration of service provider andservice receiver, while an identical service result isavailable, based on a functionality of goods.

We use the example of the collection of performancedata of machine tools as a service offer by an externalservice provider. The data can either be collected manuallyon-site by an employee, who determines the data with thehelp of a measurement device, or semi-automated when theemployee reads the data off a meter or via a TeleService-Modul, which reads the appropriate data automatically outof the machine control.

In all three cases, there is the difference between theservice provider (employee, respectively TeleService-Modul) and the service receiver (machine tool of thecustomer). In the context of the automation of an industrialproduct-service module, we have a different situation, asthere is no division between service provider and servicereceiver. Manual processes of industrial product-servicemodules are carried out by an accordingly qualifiedemployee without supporting IT-systems. A semi-automated process is carried out by an employee, who issupported by IT-systems which are available either as anexternal system communicating with the Industrial Product-Service System or are directly available through theIndustrial Product-Service System (e.g., through control).

P S

P S

P S

Sta

ff qu

alifi

catio

n

Degree of automation

Fig. 7 Solution space (based on[48])


An automated process is carried out without any involve-ment by an employee and is therefore carried out self-sufficiently by the Industrial Product-Service System, i.e.,the division between service provider and service receiveris eliminated. This leads to the phenomenon that anautomated service processes is transforming into a technicalfunctionality of the IPS2 itself and could no longer beidentified as a traditional service. Depending on the givendegree of automation of the provision process, the ratio oftangible and intangible goods varies within the IndustrialProduct-Service System, representing a partial substitutionof tangible and intangible goods.

4.2 Staff qualification

The qualification of the employees who execute the serviceprocesses is, due to the direct contact to the customercompanies, one of the most important factors, influencingthe customer's satisfaction with the service process,respectively process result. It is nearly impossible to differbetween service process and employee action [49]. There-fore, a service will only fulfill the expectation of a customerif the qualification of the employee fulfills this expectationtoo [50]. The qualification of an employee is made up ofthree components: “knowledge,” “ability,” and “willpow-er,” the first two describing criteria in the closer sense andlatter describing the motivation [50].

The solution space is set by the employee's qualification,as the sub-processes are designed differently for variousqualification levels (e.g., by expert support or a detaileddescription of individual process steps); other requirementsare made according the resources for employee support(documentation, instruction for action, augmented reality,and shared vision system), and the attributes have to be setdifferently concerning the execution time and costs. Due tothe heterogeneity of the services which have to bedeveloped in an Industrial Product-Service System, thereare a large number of different requirement categories; theirdegree of optimization is weighted depending on the typeof service and specifies the qualification level. Thesecategories are listed as follows:

& Social competence, e.g., interaction with customers orcolleagues manner

& Analytical competence, e.g., error identification orprocess optimization

& Method competence, e.g., methods for the planning ofmaterial flow

& Technological competence, e.g., expert knowledge inone industrial sector

& Technical competence, e.g., technical skills

As the solution space increases exponentially to therelevant parameters and their classification and a precise

classification of the sub-processes is no aim, the observedqualification levels are limited to three stages for thedetermination of the specifications of the sub-processes:

Expert His qualification is in the field ofanalytical and methodologicalcompetence. An expert is able to solvenew problems in his field of actionwithout any help, and he is also able tocommunicate these results to a thirdperson in a structured form.

Service-employees

They are able to carry out standardprocesses without any failures, as long asthey are experienced with these processes.Otherwise, they need support in form ofappropriate documents of experts.

Unskilledemployees

They have a low degree of qualificationand can therefore execute simple routineprocesses only or support complex serviceprocesses. Services with highrequirements concerning the analytical ormethodological competence cannot beexecuted by unskilled employees, evenwith the help of an expert.

4.3 Characteristics of the sub-processes

The solution cluster within a solution space is determinedby variations of defined sub-processes with the help ofthe three parameters of the solution space “degree ofautomation,” “use model,” and “staff qualification.”Theoretically, the result is a 3×3×3 matrix with 27different sub-process specifications (Fig. 8). The combi-nation of an “automated service process” with the“qualification level” leads to one sub-process specifica-

degree of automationautomated semi- automated

manual

use

mo

del

avai

labi

lity-

or

ient

edre

sult-

or

ient

edfu

nctio

n-

orie

nted

propersolutioncluster

Fig. 8 Solution cluster [48]


tion, as the automated process takes place without anyemployee involved. Finally, the attributes and resourcesfor each sub-process specification will be allocated withdata, and the sub-processes of all types of services linkedin the target systems will be checked on consistencyconcerning the phrasing of the target.

5 Exemplary approaches

Within the following sections exemplarily, the approachesfor the delivery and use phase will be shown, referring tothe IPS2 specific organizational and planning problems.

These approaches are excerpts from the CollaborativeResearch Project SFB/TR 29 on “Product-Service-Systems—dynamic interdependency of products and serv-ices in the production area.” They are supported by theresults of the industrial projects “Optimum BusinessModels for Product Service Systems in Cooperative TimeValue Networks” (Ogemo.net) [51], “Develop TechnologyAdvantages in German-Chinese Cooperation” (Co-Service) [52], and “Innovative Product-Related Servicesin Customer-Supplier-Networks” (INVEST-S) [53].

5.1 IPS2 delivery and use phase

The offering of Industrial Product-Service Systems withdynamic interdependency of products and services in theproduction area is transforming the traditional definition oforganization into a new form of relationship between thecustomer and the providing company [38]. IPS2 solutionsare designed flexibly in regard to possible changes ofindividual customer needs and requirements during the usephase [54].

The change to new kinds of business models requiresreorganization and reorientation within the enterprises [52].An organization for IPS2 consists of competences out ofproduction and service industries. To be competitive, anIPS2 provider has to combine his and external competencesto get the best fitting solution. The organizational challengelies within keeping the guarantee for sustainability andavailability over the life cycle. Limited resources, marketdemands, changing customer requirements and continuousimprovement with gained use knowledge are influencesthat have an effect on the organizational structure and theprocess workflows. The influences are dynamic, and thusthe organization has to cope with this dynamics; an IPS2

provider is characterized by a flexible and dynamicalstructure.

With respect to the intangible service shares, whichprovide a value to the customer via the complete life cycle,the planning of service processes along the entire life cyclegains importance.

The critical factor for a successful service executionhowever is indicated in the resources linked with theservices, as achieving the necessary availability is based onthem. Those resources imply much planning work that hasto be considered not only in the phase of service deliverybut already in the phase of service design as well.

5.2 IPS2 network as an organizational structure

The organizational structure deals with the formal structur-ing of enterprises. It defines workflow connections betweenthe organizational units to manage corporate duties [55].The organizational structure is parted into the taskstructuring, creation of organizational units (vacancies anddepartments), and the instruction and information flowsbetween the units. A traditional operational organizationdescribes the production procedure, sequence, times, andsteps. The transport of information and products for theorder handling and the definition of working places areparts of the operational organization. This generally con-trols the normal business processes to guarantee a similarand efficient acting.

For the design of an organizational structure forIndustrial Product-Service Systems, the question of theright allocation of competences and decisions is veryimportant. This will be described as the centralized anddecentralized partition. The term centralized means theallocation of personal and competences on one place of thecompany. Instead of the geographical allocation of personaland resources near the operation site, that is meant bydecentralized organization.

For the delivery and use phase of the IPS2 life cycle,questions about the partition of the provision tasks are infocus. This includes the partition inside one company andthe possibility to outsource the provision tasks to externalsuppliers.

A general and for all situations suitable organizationalstructure is not possible because of the very heteroge-neous customer and provider situations [56]. A bestfitting organization for a manufacturer of customer-individual products could be different from an organiza-tion for a manufacturer of customer-independent volumeproducts. Presently, the service development is sufferingfrom a lack of adequate tools and methods for improvingthe standardization of the service processes. One approachto improve the service delivery is to combine severalcompany individual processes into one flexible networkprocess including every part of the service delivery chain[57, 58]. Task-oriented ad hoc cooperation of IPS2

providers and network partners demands for a cooperativeorganizational and operational structure alongside withservice business models and a modular service system[59].


Thus, the delivery organization of an IPS2 is always anetwork organization. Minimum, the customer and the IPS2

provider are working together to achieve the most valuefrom the IPS2. Additional suppliers can be used to competewith the problems of limited resources and the need forhigh competences of the IPS2 technology.

The supply chains of IPS2 describe the extra-organizational structure to manage the delivery of IPS2

during its life cycle. The supplier of the IPS2 has to managemany different and complex processes during a long periodof time. The characteristic of the IPS2 to provide a problemsolution and not a given functionality in the form of aproduct leads to the demand that more than one companyhas to join the network to fulfill all necessities (Fig. 9).Interviews with possible customers have shown that theoutsourcing of IPS2 components is not of particularimportance, provided that one contact person is constantlyavailable for the customer [60]. Thus, the supply chain inthe meaning of an IPS2 organizational structure canimplement a flexible using of suppliers for the processesin the delivery phase.

This approach shows the typology of the service supplychain with the context of delivery and communicationflows. Figure 10 shows the relations and the main elementsof the IPS2 supply chain. It consists of the customer of theIPS2 and hence the IPS2 itself, the IPS2 provider, IPS2

module suppliers, component suppliers, and service suppli-ers [61]. In the following, the different elements will bedetailed.

Customer The customer is the receiver of the IPS2. He buysthe IPS2 from the IPS2 provider, and his requirements haveto be recognized in the IPS2 development and organization.Depending on the optimal solution for the IPS2, thecustomer pays for the delivered function or the availabilityor the output. The resources of the customer can beembedded in the delivery processes.

IPS2 provider The IPS2 provider bears the businessrelationship with the customer, and every communicationis between the customer and the provider. The deliveryflow from the IPS2 provider goes directly to the customerand includes the main parts of the IPS2. The IPS2 providertakes all risk of the IPS2. Therefore, all necessarycoordination is demanded from the IPS2 provider. Partsof the IPS2 can be outsourced to IPS2 module, component,or service suppliers.

IPS2 module supplier The IPS2 module supplier is respon-sible for a specific part of the IPS2. Therefore, he delivers theprocesses himself, or optional with offering parts of it to sub-suppliers, over the life cycle. The components or the servicescan be either delivered to the IPS2 provider or the customer.The IPS2 module supplier shares a part of the risk, and hecan manage all necessary processes without coordination bythe IPS2 provider.

Component supplier The component supplier delivers atangible part, a component of IPS2, to the IPS2 provider.This supplier does not have the prefix IPS2 and is thereforenot responsible for delivering the component over the lifecycle.

Service supplier This supplier delivers service-related partsof IPS2. This could be a service share for which the servicesupplier has technological expertise. Thus, the character-istics of services and IPS2 make it necessary that the serviceflows directly to the customer.

The problems have shown that there is a need for a newkind of organizational structure. The high dynamic of theIPS2 in the supply phase and the necessary flexibility haveto be considered. Traditional organizational structures areinfluenced by hierarchic structures. Within an organization-al structure, the tasks of the company are divided in partial

IPS2 ProviderSupplier A

Supplier B

Core Competence IPS2 Provider

SubstitutionSupplier A

SubstitutionSupplier BCore Competence Supplier B

Core Competence Supplier A

Substitution betweenSupplier A or B

Customer

Core Competence Customer

IPS2 Product Model

Fig. 9 Network decisions forIPS2 organizations


tasks that are allocated in different organizational units. Intheir granular form, the organizational units are called jobs.Every job has its tasks and is filled by one person. Thehierarchic structures are influenced by a clear taskassignment und defined managerial authority. In contrastto that, there are efforts to break out of these structures inorder to enable organization by self-organization.

The hierarchic organization and the self-organization arenot appropriate for IPS2 organizations. The hierarchicorganization is suitable for an efficient supply of productsand services and for an optimization concerning costs, time,and quality during the supply phase. However, thisorganizational structure is inflexible regarding changes. Inthe section above, the dynamic of IPS2 is described thathappens anyway because of long-term contracts. Thisdynamic cannot be handled efficiently by a hierarchicsystem. An approach for the IPS2 organizational structure isdescribed as follows. Because of the modular configurationof the IPS2, a modular organization needs to be considered[62]. It is based on modular organization units that canhandle changes and influences autonomously.

There are existing approaches for a modular organizationdesign especially for product development [62, 63].However, a modular organization for the delivery phasefor a collaboration network for Industrial Product-ServiceSystems was not invented yet.

5.3 Organization unit

To create a modular organization, basic elements areneeded. These elements are the smallest part in theorganizational structure—normally the organizational unit.

A modular organization unit is described with its name, theresponsible process, the necessary resources, and attributes.The process is part of the IPS2 model and has to begenerated out of it. Therefore, all processes are divided upto manageable size, and afterwards, they have to beassigned to the organizational units. Figure 11 shows thestructure of a modular organization unit for IPS2.

Every organizational unit needs necessary resources andattributes out of their process description. Afterwards, asuitable organization unit owner out of the network partnershas to be found. This can either be the customer, the IPS2

provider, or a supplier out of the IPS2 network. If more thanone organization unit owner are possible, a pool with alloptions is generated.

In addition to the linking of the IPS2 product model withthe organization unit, there is also a linking with the IPS2

metainformation model to get access to the delivery andusage knowledge. The IPS2 metainformation model is acentral product data management system for all IPS2 lifecycle data. To work with the organization units and tocreate an organizational structure, two layers are imple-mented. The event layer is for the process control and allactions belonging to workflows during the delivery phase.The information gateway is implemented for supporting theprocess owner with required information. In this gateway,the process will be scanned for missing information toexecute the process. Every process and every organizationunit needs special knowledge for the right decision. Themissing information will be requested from the IPS2

IdentifierProcess (Attributes)

Resources (Attributes)

Modular Organization Unit(MOU)

Event Layer

Information Gateway

Supplier

OrganizationUnit

assigned

IPS2

productmodel

Delivery andusage

knowledge

linke

d

PriorMOU

Interacting MOU

linke

d

SubsequentMOU

Synchronization InterfacesLegend:

IPS2 Provider

OrganizationUnit

Customer

OrganizationUnit

Fig. 11 Concept of a modular organization unit

IPS≤

IPS2

Provider

ServiceSupplier

IPS2

ModuleSupplier

ComponentSupplier

service ShareIPS2 Module

productshare

IPS2 module/component/service

Delivery flowNetwork boundary

Customer

IPS2

Communication

productshare

Legend:

Fig. 10 Typology IPS2 network organization


metainformation model, and after the process execution, itwill provide the new information back to the IPS2

metainformation model.The event layer has five different subjects:

& Initiation of the delivery process (continuous stand-by)& Update of resources, attributes, and processes& Substitution& Monitoring of resource availability& Execution of the delivery process.

Workflows can be created with the synchronizationpoints of the modular organization units. Therefore, everyunit has three different kinds of synchronization points. Onesynchronization point is for connecting with prior organi-zation units, one for the following units, and one forparallel acting units. So, a process orientation in theorganizational structure is generated.

5.4 Resource planning instead of process planning

Due to the integrated development of an Industrial Product-Service System, the product core as well as further productsand services are designed in advance. Concerning theservice planning for Industrial Product-Service Systems, itwas shown that characteristic service scenarios improve thepredictability of services within value-generating networks[64]. The continuous optimization of service processesduring their repeated execution (ramp up) allows faster andcheaper service execution overall; depending on thenumber of installed IPS2, also the knowledge increasesover the use phase. Based on this operating experience, theservice delivery can evolve from randomness to planning,

whereas flexibility and real-time capability can be reachedwhile allowing high work load (Fig. 12).

Due to the life cycle spanning contact to the customer,high quality statistics about machine history, customerhistory, and the related service executions are available.Combined with the integrated development of products andservices, this enables effective prediction of serviceprocesses (stochastic/statistic) instead of reacting on ma-chine failures. Furthermore, the IPS2 business models withtheir specific variances (see next section) provide thepossibility to plan service processes for a specific date, aslong as the customer value (e.g., an agreed availability) iskept on the required level.

Another great impact of IPS2 on the planning's com-plexity is their dynamic behavior over the life cycle: Withinthe designed solution space (see Section 4), the occurrenceof an IPS2 can change over time due to changing customerdemands and provider abilities, what of cause also changesthe processes to be executed during the use phase.

All required resources for all these processes have to beanalyzed, planned, and optimized. A process in this contextmeans every action to be done by the provider, e.g., theexecution of a service process as well as the delivery of aspare part or sending a software update. A resource meansall required machines, material, personnel, tools, etc.

In the first planning step, all the single resource needsare analyzed and combined the best way, e.g., regardingtransition times. Combining the resource needs means notonly simple summing: All customer-specific restraints of allprocesses as well as their relevant data have to be carriedalong [65]. Furthermore, the IPS2 specifics (see nextsection) have to be considered.

timeProcess 1

Process 2Process 3

Process 1

Process 2Process 3

time

timeReserve

UnscheduledProcess 1

UnscheduledProcess 2

Request Delivery

Decision basedon certainty

(deterministic)

Decision basedon uncertainty

(stochastic/statistic)

Decision basedon incalculability

(unexpected)

Machine history

Optimizationduring IPS2

deliveryphase

Customer history

IPS2 business models

Delay

Fig. 12 From randomness toplanning


The scheduling at this step is based on several travellingsalesman problems, and the transition times can be reducedby using algorithms specialized therefore. However, thereare several resources and several processes at severalplaces, what implies inner constraints due to the structureof all Industrial Product-Service Systems to be planned.

5.4.1 Specific variances of IPS2's usable within planning

Industrial Product-Service Systems are especially characterizedby delivering value and fulfilling customer demands withoutstating clearly with exactly what combination of products andservices this is done. Thus, Industrial Product-Service Systemsimply some specific variances [66]; the main ones are

& Variance in time,& Variance of resources,& Variance of processes,& Variance of allocation time,& Service distribution,& Partial substitution of product and service shares, and& Integration of customers’ resources.

The variance in time describes the possibility toreschedule a process, e.g., a regular maintenance, within acertain time span. For example, if a process cannot beexecuted in time, the variance in time is used by postponinganother process using the critical resource.

The variance of resources characterizes the opportunityto perform a process with several resources optionally, suchas maintenance processes can be rapidly executed by anexpert or more slowly by a lower skilled worker.

The variance of processes specifies the availability ofseveral different processes requiring different resources toreach the same aim of customer satisfaction, e.g., repeatedreplacement of a weak part or substitution by an improvedpart one time.

The allocation time can be varied by making thetechnician or the spare part use different means oftransportation, i.e. drive by car or use a plane.

Service distribution is the outsourcing of certain serviceprocesses within the network; it is a specific variance, asIndustrial Product-Service Systems are highly complex andwill be offerable in networks only.

The partial substitution of product and service sharesis a major characteristic of Industrial Product-ServiceSystems, as the only aim is to fulfill the customers'requests independent from a certain combination ofproducts and services; from the planning's point of view,this variance is only a special type of the variance inprocesses, as the processes to be planned as well as therequired resources vary with the chosen product-servicecombination.

Another degree of freedom is the possibility of usingcustomer's resources, e.g., maintenance personnel; thisappears due to the high level of collaboration associatedwith Industrial Product-Service Systems.

When starting the planning, all process-resourcecombinations are chosen best regarding costs etc., soreducing transition times is the main possibility ofoptimization. However, when there are delayed processesor additional processes to be executed in short time, theoperational resource planning can make use of thespecific variances to solve this problem under real-timeconditions (Fig. 13). As there are many variances, thereare many possibilities to solve or optimize the problem byusing one or more of these variances or using a specialcombination.

5.4.2 Optimization strategy for the IPS2 resource planning

To balance between calculation time and performance ofthe optimization result, at first, an existing solution for the

Strategic capacity planningResource R

R1

R2

R3

Time t during delivery phase

P S

P S

P S

Marketprognosis

Operative resource planning

P SP1 P2 P3R1, R2

R2, R4, R5 P1 P4 P5

E1

E1

Result EProcess PResource R

Delivery processes

IPS2-conditionResource demand

current

Fig. 13 Strategic and operativeresource planning


planning problem is needed, as a planning problem in mostcases means the dissatisfaction of a customer what shouldbe avoided as possible. Afterwards, or for example duringan overnight replanning run, the more complex variances'applications can be examined for further optimization.

As the optimization can make use of several degrees offreedom, at first, all the possible variances have to bestructured regarding their purposeful effect.

An overall metaheuristic [67] for the IPS2 resourceplanning's optimization may be structured as follows:

& Use of variance in time& Use of alternative resources& Use of alternative processes& Request to the network (service distribution and/or

integration of customer's resources)& Adjustment of allocation speed.

The variances are primarily ordered according to thedirect costs they cause. The application of the variance intime (i.e., postponement of processes) does not cause anydirect costs. The use of alternative resources in mostcases also causes no direct costs, if only unemployedresources are used; however, that will cause someindirect costs if, e.g., an alternative worker is lessfamiliar with a machine to be maintained and thusrequires more time. The use of alternative processesmight cause some direct and indirect costs, as during thedevelopment, already the most cost-effective process waschosen for each task. To request necessary resources tothe network will cause direct costs, as external partnershave to be included, coordinated, and supported; thus, itis a time-consuming way to replace a necessary resource.At least, the adjustment of the allocation speed isconsidered; it mostly causes direct costs by using fasterbut more expensive means of transportation.

According to the complexity of the variances' appli-cation, it is considered how broad and how deep onevariance should be used: Up to which degree of relation-ship to the optimization potential a variance is applied onthe resources and processes, how many applications ofthis variance are done consecutively until this search for asolution seems to be no longer targeting, and up to whichlevel of complexity (range of alterations) a variance'sapplication is functional.

At first, the variance in time is considered in depth,until the delivery reliability or the overall efficiencybecome unacceptably bad. Afterwards, the use ofalternative resources is examined, but not totally indepth; if the substituted resource is only loosely relatedto the critical resource, its replacement has only aminimal chance to solve the problem. The use ofalternative processes is applied then only up to asecond-degree relationship; it has such a wide and

complex impact on the whole planning that its deepanalysis would cause extremely long calculation times,independent from the calculation's effectiveness. There-after, the critical resource and its direct alternative arerequested to the network; requesting more resources lessrelated to the critical one would need too much coordina-tion effort while being too slow to achieve the requiredsolution in the short run. Finally, the adjustment of theallocation speed is executed for a reasonable calculationtime. If a solution has not been found in the end, themetaheuristic is started again, while evaluating the nextstages of deepness in the variances' application.

As all variances' applications are large-scale optimiza-tion problems themselves (see Fig. 14), also the searchwithin each step will apply individual metaheuristics [68];a combination of several algorithms or (meta) heuristics,e.g., genetic algorithms or tabu search, seems to bepurposeful.

5.5 Conclusion and outlook

Industrial Product-Service Systems are a paradigm shift forthe future business between companies. A new definitionfor the combination of products and services into IPS2 andnew business models are described. This paper has shownthat traditional product and service methods cannot beeasily assumed for the development and delivery of IPS2.Especially, the opposed characteristics of products andservices have shown that new methods for IPS2 need to be

Fig. 14 Illustration of the optimization by variances' application


developed. Especially, the planning and development phaseresults not only in one defined solution but also in asolution space that can be used to counter the problem oflimited resources for IPS2 delivery processes. The solutionspace can be varied between different options and specifi-cations. Additional advantages of IPS2 are the long-termcontracts with the chance to minimize uncertainties for thedelivery planning. An IPS2 provider does not merely sell amachine and wait for the customer to order services.

Therefore, new methods for the delivery of IPS2 arenecessary. An approach for a modular organization struc-ture with the extension of modular organization units isdescribed. This structure is supporting the flexible use ofresources of networking companies. Planning the resourcesfor the IPS2 delivery is a complex problem that also needsnew planning methods. The metaheuristic optimizationstrategy is an approach to establish a real-time planningand control.

The presented approaches represent only some parts ofthe research project SFB/TR 29. The project comprises thewhole IPS2 life cycle starting from marketing and endingby life cycle data management. The next steps concern thedesign of additional necessary methods from marketing,development, delivery, supporting tools, controlling, andlife cycle data management. All these methods provide abasis for a general IPS2 theory that has to be used by futureindustrial projects. The industrial projects will help toimprove the methods and to show customer values.

Acknowledgments We express our sincere thanks to the DeutscheForschungsgemeinschaft (DFG) for financing this research within theCollaborative Research Project SFB/TR29 on “Industrial Product-Service Systems—dynamic interdependency of products and servicesin the production area.”

References

1. Aurich JC, Fuchs C (2004) An approach to life cycle orientedtechnical service design. Annals of the CIRP 53(1):151–154,ISSN: 0007-8506

2. Stahel WR (2008) The performance economy: business modelsfor the functional service economy. In: Krisna KB (ed) Handbookof performability engineering. Springer-Verlag, Berlin, pp 127–138. ISBN:978-1848001305

3. Aurich JC, Fuchs C, Wagenknecht C (2006) Life cycle orienteddesign of technical product-service systems. J Clean Prod 14(17):1480–1494

4. Mont OK (2002) Clarifying the concept of product-servicesystems. J Clean Prod 10(3):237–245

5. Baines TS et al (2007) State-of-the-art in product-service systems.Proc Inst Mech Eng B J Eng Manuf 221:1543–1552, ISSN 0954-4054

6. Levitt T (1969) The marketing mode, pathways to corporategrowth. McGraw-Hill, New York

7. Bartolomeo M et al (2003) Eco-efficient producer services—whatare they, how do they benefit customers and the environment and

how likely are they to develop and be extensively tilized? J CleanProd 11(8):829–837

8. Cunha PF, Caldeira Duarte JA (2004) Development of aproductive service module based on a life cycle perspective ofmaintenance issues. Annals of the CIRP 53(1):13–16, ISSN:0007-8506

9. Slater SF, Narver JC (1994) Market orientation, customer value,and superior performance. Bus Horiz 37:22–28

10. Guiltinan et al (1996) Marketing management: strategies andprograms. McGraw Hill, Irwin

11. Vargo SL, Lusch RF (2004) Evolving to a new dominant logic formarketing. J Mark 68:1–17

12. Aitken R et al (2006) Special issue on service-dominant logic ofmarketing: insights from the Otago forum. Marketing Theory 6(3):275–392

13. Baines TS, Lightfoot HW, Evans S et al (2007) State-of-the-art inproduct-service systems. Proc Inst Mech Eng B J Eng Manuf 221(10):1543–1552. doi:10.1243/09544054JEM858

14. Brissaud D, Zwolinski P, Maussang N (2007) Common represen-tation of products and services: a necessity for engineeringdesigners to develop Product Service Systems. In: Kraus FL (ed)The future of product development. Proceedings of the 17th CIRPDesign Conference, Springer, Berlin, pp 463–471. ISBN: 978-3-540-69819-7

15. Shehab EM, Roy R (2006) Product service-systems: issues andchallenges. Fourth International Conference on Manufacturingresearch (ICMR 2006). John Moores University, Liverpool, pp5th–7th

16. Matzen D, McAloone TC (2006) A tool for conceptualising inPSS development. 17. Symposium “Design For X”, Erlangen, pp131–140. ISBN: 3-9808539-4-2

17. Komoto H, Tomiyama T, Nagel M, Silvester S, Brezet H (2005)Life cycle simulation for analyzing product service systems.Fourth International Symposium on Environmentally ConsciousDesign and Inverse Manufacturing, Eco Design, 12–14 Dec 2005,pp 386–393

18. Aurich J, Fuchs C, Barbian P (2004) An approach to the design oftechnical product service systems. Industrie Management 20(5):13–16

19. Vandermerwe S, Rada J (1988) Servitization of business: addingvalue by adding services. Eur Manag J 6:4, ISBN 978-1-84628-934-7

20. Schmitt R, Hatfield S (2008) Strategic servicification—a qualitybased approach beyond service-engineering. Manufacturing sys-tems and technologies for the new frontier. The 41st CIRPConference on Manufacturing Systems 26–28 May 2008, Tokyo,Japan, pp 511–514. ISBN 978-1-84800-266-1

21. Sakao T, Shimomura Y (2007) Service CAD system to supportservicification of manufactures. In: Advances in Life CycleEngineering for Sustainable Manufacturing Businesses. Proceed-ings of the 14th CIRP Conference on Life Cycle Engineering,Tokyo, Japan

22. Sundin E, Lindahl M, Öhrwall Rönnbäck A, Ölundh SandströmG, Östlin J (2006) Integrated product and service engineeringmethodology. In: Proceedings of 11th International Conference ofSustainable Innovation, Chicago, USA, 23–24 October

23. Lindahl M, Sundin E, Shimomura Y, Sakao T (2006) Aninteractive design model for service engineering of functionalsales offers. Proceedings of the International Design Conference,Dubrovnik, Croatia

24. Sundin E, Bras B (2005) Making functional sales environmentallyand economically beneficial through product remanufacturing. JClean Prod 13(9):913–925

25. Arai T, Shimomura Y (2005) Service CAD system—evalua-tion and quantification. CIRP Annals Manuf Technol 54(1):463–466


http://dx.doi.org/10.1243/09544054JEM858

26. Lindahl M, Ölundh G (2001) The meaning of functional sales.Proceedings of the 8th International CIRP Seminar on Life CycleEngineering, Varna, Bulgaria

27. Seliger G, Kim HJ, Kernbaum S, Zettl M (2008) Approaches tosustainable manufacturing. Int J Sustain Manuf 1:58–77

28. Abele E, Anderl R, Birkhofer H, Rüttinger B (2008) EcoDesign—Von der Theorie in die Praxis. ISBN: 978-3-540-75437-4

29. Kara S, Manmek S, Kaebernick H (2007) An integratedmethodology to estimate the external environmental costs ofproducts. CIRP Annals Manuf Technol 56(1):9–12

30. Janz D, Sihn W, Warnecke HJ (2005) Product redesign using value-oriented life cycle costing. CIRPAnnals Manuf Technol 54(1):9–12

31. Ölundh G, Ritzén S (2001) Functional sales as a further approachto environmental product development. Proceedings of EcoDesignConference, Tokyo, Japan

32. Meier H, Kaiser U (2007) Integration of service providers in SMEproduct service systems. Proceedings of the 20th Conference onComputer-Aided Production Engineering (CAPE), Glasgow

33. Hermeier B, Platzköster C (2006) Ergebnisse der ersten bundes-weiten Marktstudie “Industrie-Dienstleistungen”Arbeitspapiereder FOM, Nr. 2, Essen, 2006

34. Service-Trends (2005) Wohin entwickelt sich der After-Sales-Service, Verlagsgruppe Handelsblatt

35. Meier H, Kaiser U, Krings R (2008) Service as enabler for lifecycle-oriented businessmodels. Proceedings of the 15th CIRP InternationalConference on Life Cycle Engineering (LCE) 2008, Sydney

36. Meier H, Kaiser U, Kroll M (2008) Structuring of servicepackages along the machine life cycle. Proceedings of the 6thInternational Conference in Manufacturing Engineering (ICME)2008, Neapel

37. Meier H (ed) (2004) Embedded online service. VDMA Verlag,Frankfurt

38. Meier H, Uhlmann E, Kortmann D (2005) Hybride Leistungsbündel– Nutzenorientiertes Produktverständnis Durch Interferierende sach-und Dienstleistungen. Wt Werkstattstechnik online 7/8:528-532

39. Arai T, Shimomura Y (2005) Service CAD system—evaluationand quantification. Annals of the CIRP 54(1):463–466

40. Tan AR, McAloone TC (2006) Charateristics of strategies inproduct/service-system development. International Design Con-ference, Dubrovnik, Croatia

41. Matzen D, Tan AR, Myrup Andreasen M (2005) Product/service-systems: proposal for models and terminology. 16. Symposium“Design For X”, Neukirchen, 13–15 October

42. Stähler P (2002) Geschäftsmodelle in der digitalen Ökonomie.Josef Eul Verlag, Lohmar

43. Rüegg-Stürm J (2004) Das neue St. Galler Management-Modell.In: Dubs R et al (eds) Einführung in die Managementlehre, 1stedn. Haupt-Verlag, Bern, ISBN 978-3-258-06999-9

44. Tucker A, Tischner U (2005) New business for old Europe—product-service development, competiveness and sustainability.Greanleaf Publishing, Sheffield

45. Johansson JE, Krishnamrurthy C, Schlissberg HE (2003) Solvingthe solutions problem. McKinsey Q 3:117–125

46. Rese M, Otte HO, Strotmann WC (2007) Industrial Product ServiceSystems as a problem solution to meet future challenges in B-to-Bmarkets—a value based approach. Proceedings of the internationalConference on Business Market Management at the TU Delft

47. Abramovici M, Schulte S (2006) Lifecycle management fürhybride Leistungsbündel. Wt Werkstattstechnik online Jahrgang96 H.7/8:467-471

48. Kortmann D (2007) Dienstleistungsgestaltung innerhalb hybriderLeistungsbündel. Dissertation, Shaker-Verlag. ISBN 978-3832266226

49. Becker F, Günther S (2001) Personalentwicklung als Führung-saufgabe in Dienstleistungsunternehmungen. In: Bruhn M, Mef-

fert H (eds) Handbuch Dienstleistungsmanagement, 2. Auflage,Gabler Verlag, Wiesbaden, pp 751–780

50. Berry LL, Parasuraman A (1999) Dienstleistungsmarketing fängtbeim Mitarbeiter an. In: Bruhn M (ed) Internes marketing.integration der kunden- und mitarbeiterorientierung. Grundlagen– Implementierung – Praxisbeispiele. 2. Auflage, Gabler Verlag,Wiesbaden, pp 69–92

51. Meier H, Lanza, G. (Ed.) (2009) Projekt-Abschlussbuch: Kooper-ative Geschäftsmodelle zur Integration von Sach- und Dienstleis-tungen. VDMAVerlag. ISBN: 978-3-8163-0569-9

52. Meier H, Kroll M (2009) From products to solutions—IPS2 as ameans for creating customer value. 16th CIRP InternationalConference on Life Cycle Engineering Kairo, 2009

53. Meier H (Ed.) (2004) Dienstleistungsorientierte Geschäftsmodelleim Maschinen- und Anlagenbau: Vom Basisangebot bis zumBetreibermodell. Springer Verlag. ISBN: 3540408169

54. Meier H, Kortmann D (2007) Leadership—from technology touse. CIRP Conference on Life Cycle Engineering., pp 159–163

55. Braun J (1996) Aufgaben und Ziele der Organisationsgestaltung.In: Bullinger H-J, Warnecke HJ (eds) Neue Organisationsformenim Unternehmen. Springer Berlin Heidelberg, New York, pp 7–27

56. Schuh G, Friedli F, Gebauer H (2004) Fit for service: Industrie alsDienstleister. Hanser Verlag, München Wien

57. Meier H, Krings R, Kaiser U (2008) Analysis and designoptimization of service delivery processes in cooperative valuegenerating manufacturing networks. Proceedings of the CIRPDesign Conference 2008, Enschede

58. Meier H, Krings R, Kaiser U (2008) Standardization within theservice creation process in value generating networks. Advancesin manufacturing technology XXII. Proceedings of the 6thInternational Conference on Manufacturing Research (ICMR)2008, London, pp 531–538. ISBN: 978-1-902-31660-4

59. Meier H, Gu R, Kaiser U, Kroll M (2008) Design of a cooperativeorganization for a machine's life cycle based service provision.Proceedings of the IEEE International Conference on ServiceOperations and Logistics, and Informatics (SOLI), 2008, Beijing

60. Stremersch S, Wuyt S, Frambach RT (2001) The purchasing offull-service contracts: an exploratory study within the industrialmaintenance market. Ind Mark Manage 30:1–12

61. Meier H, Völker O (2008) Industrial Product-Service Systems—typology of service supply chain for IPS2 providing. In: MitsuishiM, Ueda K, Kimura F (eds) Manufacturing systems andtechnologies for the new frontier, 41st CIRP conference onmanufacturing systems. Tokyo, Japan, pp 485–488

62. Sanchez R, Mahoney JT (1996) Modularity, flexibility andknowledge management in product and organization design.Strateg Manage J 17:63–76

63. Göpfert J (1996) Modulare Produktentwicklung – Zur gemeinsa-men Gestaltung von Technik und organisation. Deutscher Uni-versitätsverlag, Germany

64. Meier H, Funke B, Krings R, Krug C (2008) Case study basedservice process library supporting the ressource planning forIndustrial Product-Service Systems (IPS2). Proceedings of the 6thInternational Conference in Manufacturing Engineering (ICME)2008, Neapel

65. Meier H, Krug CM (2008) System for planning of resources inIPS2-Delivery. 41st CIRP Conference on Manufacturing Systems.Tokyo, Japan

66. Meier H, Krug CM (2006) strategische kapazitätsplanunghybrider leistungsbündel. PPS Management 11:48–51

67. Blum C, Roli A (2003) Metaheuristics in combinatorial optimi-zation: overview and conceptual comparison. ACM Comput Surv35(3):268–308

68. Reeves CR (1995) Modern heuristic techniques for combinatorialproblems. McGraw-Hill, New York


Documents

IPSS