Characterizing Product-Service Systems (PSS) in the Healthcare Industry

Authors: Man Hang Yip, Robert Phaal, David R. Probert Centre for Technology Management, Department of

Engineering, University of Cambridge, U.K.

Presentation by Man Hang Yip at PICMET’14 at Kanazawa, Japan July 30, 2014

Content

•  Motivations & objectives •  Literature highlights

•  The ‘PSS Characterization Approach’ in brief •  The implications of this approach

•  Conclusions •  Limitations

2 Yip, M.H. © 2014

Motivations & objectives

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Hospital Healthcare service effectiveness

How and what to innovate?

A new PSS characterization scheme to support the early stage new PSS development process

Manufacturers

Yip, M.H. © 2014

Literature highlights – P, S, and PSS

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A service cannot be stocked without losing its identity and requires both producer and consumer; hence is constrained by time and location (Hill, 1999).

A product “exists independently of its owner and preserves its identity through time” (Hill, 1999, pp. 437), and can be intangible (e.g. a digital sound track).

Product, Service, and PSS

A PSS is a combination of products and services, jointly fulfilling a user’s needs (Goedkoop, van Halan, te Riele, & Rommens, 1999)

PSS classification

Frequently used: product-oriented, use-oriented, and result-oriented, which was extended to include integration-oriented and service-oriented (Neely, 2009) Issues: built using the traditional reference of product being tangible, and the classifications are more useful for business modelling than for new PSS development

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Literature highlights – contextual influence

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From business ecosystem literature – companies to look beyond the ‘extended enterprise’ boundary to include government, regulatory bodies, competitors, and other stakeholders’ interests (Moore, 2006)

Context

From actor-network theory – provides the theoretical basis to allow connections among actors, that includes both human and non-human, to be brought out and examined through ‘flattening’ levels and placing actors side-by-side (Latour, 2005; Law, 1992)

From value-in-use literature – Service-Dominant Logic urges companies to focus on customer value and proposes the concept that the context of value creation is network of networks (Vargo & Lusch, 2004; 2008)

Yip, M.H. © 2014

The PSS Characterization Approach (in brief)

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Step 4: PSS Representation

Step 1: PSS Depiction

Step 5: PSS Characterisation

Step 3: PSS Decomposition

Step 2: PSS Abstract

Representation

Company’s strategy on new product and service

Step 0: Stakeholder identification

Yip, M.H. © 2014

The Four PSS Characteristics: - potential customer perceived value level - type and degree of connectivity - connectivity number - PSS configuration type

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Step 1

Step 2

Step 3

Step 3

Step 4

Step 5

The implications of this approach

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PSS Definition

Customer value

Environmental impact

Product & service content

Strategy for NPSSD

Process for NPSSD

Yip, M.H. © 2014

The applicability of this approach to support the early stage of NPSSD

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Applicability Findings

Feasibility Stakeholder identification & PSS abstraction steps could possibly be completed without a trained facilitator

Usability Needs refinement, but the approach is robust enough to be applied in different scenarios

Utility •  Useful for identifying stakeholders, relevant existing and new product and service elements for the new PSS

•  Encouraged participants to think about which element within the PSS potentially more valued by the customers

•  Meaningfully showed how the product and service elements interact within the PSS, and how they are to connect with the operating environment

Yip, M.H. © 2014

Conclusions

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Is an applicable approach to

support the early stage of NPSSD.

Allows the four PSS characteristics to be obtained in a systematic and repeatable manner.

Clarifies the PSS definition: 1)  What do the customer

value? 2)  How does it impact the

environment? Who are the key stakeholders?

3)  What are the more important elements, how do they interact?

Informs the NPSSD strategy and process: 4) Where does the complexity of the development come from? 5) What is the main focus, what is supplementary?

Yip, M.H. © 2014

Limitations

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After this paper was written … 7 more workshops targeting new PSS ideas in both healthcare and non-healthcare were completed. An independent observer was used in three workshops to enrich the assessment of the approach.

The PSS characteristics proposed are generated from healthcare cases, and may be limited to NPSSD in the healthcare industry only. Only three workshop results are included in this paper for producing the assessment of the applicability of the PSS characterization approach and its implications to the PSS definition. As action research is used as the methodology, the feasibility of the approach is influenced by the facilitation skills of the researcher. The interpretation of the workshop findings is biased by the researcher’s culture, background, and knowledge of the PSS in discussion.

Yip, M.H. © 2014

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If you are interested in this paper, it is in the PICMET’2014 conference proceeding. The title of the paper is: Characterizing Product-Service Systems in the Healthcare Industry

Suggested reference to this presentation: Yip, M. H. (2014). Characterizing Product-Service Systems (PSS) in the Healthcare Industry [PowerPoint slides]. Retrieved from http://www.shlideshare.net/pss-characterisation-presentation-post-presentation