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Increasing Customer Acceptance in Planning Product- Service Systems

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Increasing Customer Acceptance in Planning Product- Service Systems TECHNISCHE UNIVERSITÄT MÜNCHEN Lehrstuhl für Produktentwicklung Increasing Customer Acceptance in Planning Product- Service Systems Danilo Marcello Schmidt Vollständiger Abdruck der von der Fakultät für Maschinenwesen der Technischen Universität München zur Erlangung des akademischen Grades eines Doktor-Ingenieurs genehmigten Dissertation. Vorsitzender: Prof. Dr. Sonja Berensmeier Prüfer der Dissertation: 1. Prof. i.R. Dr.-Ing. Udo Lindemann 2. Prof. Yong Se Kim, Ph.D. Sungkyunkwan University, Seoul, Südkorea 3. Prof. Dr.-Ing. Michael Zäh Die Dissertation wurde am 09.11.2016 bei der Technischen Universität München eingereicht und durch die Fakultät für Maschinenwesen am 30.05.2017 angenommen. FOREWORD OF THE EDITOR Problem The success of the Product-Service System (PSS) “Power-by-the-Hour”, offered by Rolls- Royce to airlines, shows that customers appreciate a problem-oriented solution instead of a product fulfilling just the requirements. The service “Power-by-the-Hour” covers all maintenance processes of aircraft turbines and relieves the airlines of the responsibility of caring for the turbines – for a fixed price per flight time. This increases customer acceptance by reducing financial risks for airlines and by reducing the complexity perceived by airlines in managing their fleets. The approach PSS describes this way of integrating a product into a service to gain benefits for customers: PSS integrates both product and service elements into one integrated market offer. The example “Power-by-the-Hour” demonstrates that PSS are capable of increasing customer acceptance. Besides financial risks and perceived complexity, there are other aspects influencing customer acceptance. Using the potential of PSS to increase customer acceptance is a challenge for companies: they might not know the relevant aspects of customer acceptance and they might not know how to influence those aspects of customer acceptance in the PSS planning phase. Objectives The overall objective of this work is to provide supporting tools, methods, and models that enable companies to plan a PSS for increasing customer acceptance. Companies need to know the reasons, drivers, and barriers of customer purchase decisions. Modeling those aspects of customer acceptance can help firms to better understand customers and their behavior. Knowing the relevant aspects of customer acceptance is a premise for customer centricity in PSS design. The PSS planning phase is essential for the success of the PSS for customer acceptance, because the planning phase determines main elements of the PSS, i.e. the business model and major product and service elements. Intertwined processes of service and product design characterize this planning phase. In this context, companies need to know the decisions and activities that are necessary for creating a PSS concept. To enable companies to focus the PSS planning on customer acceptance, this work defines a measure that connects PSS planning with the aspects of customer acceptance. This measure should support PSS planners in defining PSS elements to influence customer acceptance. Results The main results of this work are the decision-making process of PSS planning that integrates the model of customer acceptance and the service catalogue. Those tools support project managers, product managers, sales managers, or marketers in planning PSS to increase customer acceptance. The decision-making process for planning PSS structures the process from the first idea to the final PSS concept into three stages: requirements definition, concepts generation, and concepts evaluation. After each stage, a design review serves as a decision point that describes the decision objects and the information required at this stage. This process model helps companies to manage the processes in the PSS planning phase. The model of customer acceptance is divided into eight categories: values and beliefs, unawareness of needs, trust, psychological phenomena, perceived complexity, costs and prices, interoperability, and reliability and availability. Every category includes detailed aspects of customer acceptance. A detailed description of all those aspects, as well as a catalogue of questions for an interview or a survey, supports users of this model in identifying and quantifying the aspects of customer acceptance. The service catalogue is a collection of services structured into four levels. This catalogue supports PSS planners in identifying relevant services for their products or finding fields of potential service innovations. The four levels of the service catalogue provide a comprehensive overview and make the catalogue easy to understand for practitioners. Conclusions for Industrial Applications The transition from a product seller to a PSS provider, the so-called PSS transition or PSS shift, is a long-term process for companies involving many opportunities and risks. One opportunity is to increase customer acceptance, e.g. by better fulfilling customer wishes. This work’s results support companies, especially SMEs that just have started the process of PSS transition, in planning PSS to increase customer acceptance. Companies using the model of customer acceptance can identify and quantify relevant and unknown aspects of customer acceptance to understand the purchase decisions of their customers. The decision-making process for PSS planning provides transparency in the decisions of the planning phase and helps companies implement processes to create integrated PSS. The service catalogue supports companies in identifying fields for new services to increase customer acceptance. Conclusions for Scientific Researchers This work contributes to the research field PSS by connecting PSS planning with customer acceptance. The underlying approach of increasing customer acceptance is a novelty for PSS research: based on the customer target group, relevant aspects of customer acceptance are identified and quantified, while the PSS planning follows those aspects. The model of customer acceptance provides a comprehensive collection of aspects that are relevant for purchase decisions. The decision-making process for PSS planning adapts the existing approaches of PSS planning to a process model that organizes decisions and information required for the planning phase. The service catalogue is a service classification scheme that structures a broad range of existing services into four categories. Matching the model of customer acceptance with the service catalogue provides a direct linkage between customer acceptance and the service elements of a PSS. Garching, July 2017 Prof. Dr.-Ing. Udo Lindemann TUM Emeritus of Excellence Former Chair of Product Development Technical University of Munich ACKNOWLEDGEMENT This work was created during my occupation as a research associate at the Chair of Product Development at the Technical University of Munich (TUM) from April 2012 until November 2016. Special thanks go to my doctoral advisor Prof. Dr.-Ing. Udo Lindemann (Technical University of Munich) for supporting my ideas during the last years. Besides his fruitful advice and support, he provided me the scientific freedom that was necessary for my research. I would like to cordially thank Prof. Yong Se Kim (Sungkyunkwan University, Seoul) for being my second doctoral advisor, for having me in Seoul, and for his detailed and critical feedback. His comments helped me to better understand the Service Thinking and to improve my work’s results. I am gratefully thankful to Prof. Dr.-Ing. Michael F. Zäh who agreed to be the third examiner of my thesis. Also, I am very thankful to Prof. Dr. Sonja Berensmeier for being the chairperson of the examination board and for managing the dissertation process. Great thanks go to my mentor Ulrich Mellinghoff who contributed my work by showing me the industrial perspective. A special acknowledgement goes to my current and former colleagues at the Chair of Product Development. Their ongoing help was a great motivation for me. Especially the cooperation with Dr. Sebastian Schenkl, Christopher Münzberg, Julian Wilberg, and Daniel Kammerl was an important basis for my work. I further want to thank my “Pate” Dr.-Ing. Fatos Elezi, my “Patenkind” Annette Böhmer, Sebastian Schweigert, and the members of the MaFa’s group (e.g. Dr.-Ing. Bauer and Dr.-Ing. Daniilidis) for their support during the time at and beyond the institute. My sincere thanks also goes to Dr.-Ing. Markus Mörtl for being a great project leader and for organizing my funding. I also thank those colleagues who have proofread my work and who have given me helpful comments during the final stages of my work. Thanks go to my students for their assistance and their contribution to my work. I want to mention only a few of them: Felix Braun, Oliver Malaschewski, Alexander Preuß, Peter Brüderle, Paul Bauer, Daniel Hübner, and Lena Böttcher. Their theses benefit my work and the research projects I participated. Finally, I say very special thanks to my brothers and sisters for their support during my whole life, during my diploma studies, and during my doctoral studies. They have encouraged me in my work and they have helped me in making the right decisions. I am also thankful to my friends who have forced me to balance my life and who have many times distracted me from work. Garching, July 2017 Danilo Marcello Schmidt The following publications are part of the work presented in this thesis: Schmidt, D. M.; Elezi, F.; Birth, P.; Mörtl, M.: A Literature Review of Irrational Customer Choices at the Point
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