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Workbook 3: PSS Readiness Manual

BY : Juliana HsuanProfessor

jh.om@cbs.dk

Gauging your Readiness for

PSS

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Presentation title World-Class Servitization, methods, cases and partnerships

• How do you know whether you are ready or not?

• Do you have a strategy?• Which competitive factors do you

consider critical in the strategy? Why?

• Which criteria do you prepare yourself against?

Are you ready for PSS?

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Presentation title World-Class Servitization, methods, cases and partnerships

• Market Dynamics• Business Models• Partnerships• Organisational Dynamics• Value Propositions

Critical Themes

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MarketDynamics

• What are the competitive factors in our market?

• What are the offerings available in the market?

• What is the competitive environment?

• How do we create our market-based capabilities?

• Can we create new markets?

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• What are the competitive factors in our market?• What are the offerings available in the market? What is the competitive

environment? • How do we create our market-based capabilities? Can we create new

markets?

• Can we determine potential profits, risks and costs involved in providing integrated PSS offerings to our customers?

• Can we evaluate the life cycle costs incurred by our customers?

• What kinds of contractual obligations do we have towards our partners?

Market Dynamics

Business Models

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• Can we determine potential profits, risks and costs involved in providing integrated PSS offerings to our customers?

• Can we evaluate the life cycle costs incurred by our customers?• What kinds of contractual obligations do we have towards our

partners?

• What kinds of network constellation can be beneficial when operating in an integrated PSS oriented business?

• What are the mutual dependencies shared between the customers, the provider and suppliers?

• Can we build strong relationships and inspire trust with our customers and suppliers?

Business Models

Partnerships

• What are the competitive factors in our market?• What are the offerings available in the market? What is the competitive

environment? • How do we create our market-based capabilities? Can we create new

markets?

Market Dynamics

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• Can we determine potential profits, risks and costs involved in providing integrated PSS offerings to our customers?

• Can we evaluate the life cycle costs incurred by our customers?• What kinds of contractual obligations do we have towards our

partners?

Business Models

Partnerships

• What are the competitive factors in our market?• What are the offerings available in the market? What is the competitive

environment? • How do we create our market-based capabilities? Can we create new

markets?

• What kinds of network constellation can be beneficial when operating in an integrated PSS oriented business?

• What are the mutual dependencies shared between the customers, the provider and suppliers?

• Can we build strong relationships and inspire trust with our customers and suppliers?

Market Dynamics

Organisational Dynamics

• Do product managers interact with service managers regularly?

• Do we have the competences needed to provide service offerings?

• Is there top management support to embark on the PSS transition?

• Do we have the IT system required to support digital service activities?

• Do we have a structured development process with integrated PSS thinking?

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Market Dynamics

Business Models

Organisational Dynamics

Partnerships

• What are the competitive factors in our market?• What are the offerings available in the market? What is the competitive

environment? • How do we create our market-based capabilities? Can we create new

markets?

• Can we determine potential profits, risks and costs involved in providing integrated PSS offerings to our customers?

• Can we evaluate the life cycle costs incurred by our customers?• What kinds of contractual obligations do we have towards our

partners?

• What kinds of network constellation can be beneficial when operating in an integrated PSS oriented business?

• What are the mutual dependencies shared between the customers, the provider and suppliers?

• Can we build strong relationships and inspire trust with our customers and suppliers?

• Do product managers interact with service managers regularly?• Do we have the competences needed to provide service offerings? • Is there top management support to embark on the PSS transition?• Do we have the IT system required to support digital service activities?• Do we have a structured development process with integrated PSS

thinking?

• Is our value proposition dependent on and/or co-produced along with other suppliers?

• Are our current offerings oriented toward short-term transaction or a long-term relationship?

• To what extent does the customer’s own knowledge and skills affect the performance of our offerings?

Asset-Centric Product quality

Recovery Provision Minimum

downtime

Availability Maximisation

customer usage

Outcome-Based Configuration of

resources

Value Propositions

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Presentation title World-Class Servitization, methods, cases and partnerships

So… are you ready?

Let’s see how Danelec Marine A/S prepares itself for readiness.